Indonesian Smelters Welcome New Nickel Price Formula
Indonesian nickel smelters welcomed a new benchmark price formula that reduces the cost of low grade ore used in electric vehicle batteries. The Energy Ministry lowered corrective factors to improve operational certainty and protect the industry from cash flow deficits.
Indonesia lowered its low-grade nickel ore pricing correction factor to 14% from 26%, providing immediate operational certainty for local smelters. The revision applies to ore with 1.2% nickel content and takes effect immediately following an Energy Ministry decree. The regulatory shift reduces production costs for limonite ore used in electric vehicle battery supply chains.
