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PM #Modi’s #Indonesia Tour: Securing #India’s #Nickel Future

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PM Modi's Indonesia visit promotional graphic highlighting the rise of nickel diplomacy, emphasizing its role in powering India's clean energy future.

Prime Minister Narendra Modi’s visit to Indonesia marks more than another high-level diplomatic engagement—it represents a strategic opportunity to redefine India’s role in the Indo-Pacific through critical minerals, maritime cooperation, and resilient supply chains.

As the global race toward electric vehicles (EVs) and clean energy accelerates, access to critical minerals has become as important as access to energy itself. Among these minerals, nickel stands out as an indispensable component in lithium-ion batteries. With Indonesia possessing the world’s largest nickel reserves, the country has emerged as a pivotal player in the global clean energy ecosystem.

Why Indonesia Matters

Indonesia is not just India’s maritime neighbour; it is a strategic partner located at one of the world’s most critical maritime crossroads. The Malacca Strait, through which a significant share of global trade flows, connects directly to India’s security interests in the Andaman Sea.

The visit reflects India’s growing recognition that economic security, energy security, and maritime security are increasingly interconnected. By strengthening ties with Indonesia, India can simultaneously enhance regional stability while securing essential resources for its green transition.

The Case for “Nickel Diplomacy”

India’s ambitious targets for electric mobility, renewable energy, and battery manufacturing depend on stable supplies of critical minerals. However, much of Indonesia’s nickel processing industry has already attracted substantial foreign investment, particularly from Chinese companies that dominate downstream refining and manufacturing.

This creates both a challenge and an opportunity.

India now has a limited window to establish partnerships through:

  • Joint ventures in nickel mining and processing.
  • Investments in downstream battery material production.
  • Long-term supply agreements.
  • Technology collaboration in mineral processing.

Such initiatives could become the foundation of what may be termed “Nickel Diplomacy”—using strategic resource partnerships to strengthen both economic resilience and geopolitical influence.

Beyond Minerals: A Comprehensive Strategic Partnership

While critical minerals dominate the economic agenda, the relationship extends much further.

India and Indonesia share centuries-old civilizational links dating back to ancient maritime trade, reflected in the cultural heritage of Bali, Java, and Sumatra. Today, those historical ties are evolving into cooperation across several strategic sectors, including:

  • Maritime security
  • Digital public infrastructure
  • Healthcare
  • Space cooperation
  • Tourism
  • Connectivity initiatives

Projects connecting India’s Andaman and Nicobar Islands with Indonesia’s Aceh Province have the potential to transform regional logistics and strengthen maritime cooperation across the eastern Indian Ocean.

Defence Cooperation Gains Momentum

Security cooperation is another important pillar of the relationship.

Potential progress on Indonesia’s acquisition of India’s BrahMos supersonic cruise missile system would represent a significant milestone for India’s defence exports. Following the successful export of BrahMos to the Philippines, such an agreement would reinforce India’s reputation as a reliable security partner in Southeast Asia.

For Indonesia, enhanced defence capabilities contribute to maritime deterrence. For India, they strengthen strategic partnerships across the Indo-Pacific without forcing regional countries into great-power rivalries.

Unlocking Untapped Economic Potential

Despite being India’s second-largest trading partner within ASEAN, bilateral trade remains well below its potential. Both governments have set an ambitious target of expanding trade significantly over the coming years.

Reducing the existing trade imbalance will require deeper investment partnerships rather than simply increasing merchandise trade. Critical minerals, manufacturing, renewable energy, and digital technologies offer promising areas for long-term collaboration.

A Strategic Moment for the Indo-Pacific

Prime Minister Modi’s Indonesia visit signals India’s intention to deepen engagement with one of its most consequential regional partners. The relationship is evolving beyond traditional diplomacy toward strategic cooperation in resources, technology, defence, and maritime security.

If India succeeds in securing a meaningful role within Indonesia’s nickel value chain, this visit may eventually be remembered as the moment when Nickel Diplomacy became a defining pillar of India’s Indo-Pacific strategy.

In an era where critical minerals increasingly shape global power, the future may depend as much on partnerships around battery materials as on traditional geopolitical alliances. Indonesia offers India a rare opportunity to strengthen both its economic resilience and its strategic influence—and this visit could be the first major step in that direction.

Source: The Indian Express

#India’s #EV Market Gains Momentum as Fuel Costs Rise, but Challenges Remain

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Busy street scene in Chennai featuring an MTC electric bus and several electric scooters, with pedestrians and signage in the background.

India’s electric vehicle (EV) market is gaining traction as rising fuel prices, regulatory changes, and expanding model offerings encourage more consumers to switch from conventional vehicles.

Electric car sales rose 25% in the year ending March 2026, with EVs surpassing 5% of India’s passenger vehicle market—a key milestone often viewed as the threshold for mainstream adoption. Growth has been strongest in vehicles priced above ₹1 million, where EVs now account for one in every ten sales.

The recent surge in crude oil prices, driven in part by tensions in the Middle East, has strengthened the economic case for EVs. India imports nearly 90% of its oil requirements, making it vulnerable to global energy price fluctuations. Higher fuel costs have prompted increased consumer interest in electric mobility.

Long-term policy support is also expected to drive adoption. Proposed CAFE-3 emission standards, scheduled to take effect from April 2027, would significantly tighten fuel-efficiency and carbon-emission requirements for automakers. Industry analysts believe the new regulations could accelerate EV penetration by making compliance targets more stringent and enforceable.

State governments are also pushing the transition. Delhi has proposed phasing out registrations of new internal combustion engine (ICE) two- and three-wheelers by 2027 as part of efforts to reduce air pollution.

Analysts expect further growth to be supported by a strong pipeline of new EV launches, particularly in the passenger vehicle and two-wheeler segments. Nomura forecasts EV penetration in India’s passenger vehicle market could reach 9% by 2030.

Despite the positive outlook, significant challenges remain. Charging infrastructure continues to lag demand, with public charging stations increasing to more than 10,000 nationwide but remaining concentrated in a few states. Consumer concerns over charging availability and driving range continue to slow adoption.

India also remains heavily dependent on imported battery materials and rare earth elements, exposing the sector to supply-chain and geopolitical risks. Industry experts note that developing a fully integrated domestic EV supply chain could take more than a decade.

While rising fuel prices and supportive policies are boosting demand, industry observers say the pace of India’s EV transition will ultimately depend on regulatory certainty, infrastructure expansion, and stronger domestic manufacturing capabilities.

This version is structured in a concise business-news style, focusing on market trends, drivers, forecasts, and risks rather than narrative storytelling.

Source: BBC News

#Australia-#Japan Joint Statement on Elevated #CriticalMinerals Cooperation

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Map of Australia highlighting major regions rich in critical minerals essential for technology, clean energy, and national security. Locations include deposits of rare earths, nickel, magnesium, gallium, and fluorite across various states.

The two Governments have already identified the following key projects that have the potential to materially diversify the supply chains for critical minerals:

  • Lynas Rare Earths Project
    A flagship initiative symbolising collaboration between Japanese and Australian industry on critical minerals. In 2011, a joint venture (JARE) between Sojitz Corporation and JOGMEC provided equity and loan financing to Lynas Rare Earths to commence light rare earth production. In 2025, the project reached a further milestone with the commencement of heavy rare earth production.
  • Alcoa Gallium Recovery Project
    This project involves Alcoa working with Japan Australia Gallium Associates (JAGA)—a joint venture between Sojitz and JOGMEC—to develop gallium recovery at one of Alcoa’s operating alumina refineries in Western Australia, for use in semiconductors, LEDs, and solar cells. The project is planning to be supported by equity investment from the Governments of Japan, Australia, and the United States.
  • Magnium Magnesium Project
    Magnium Australia is planning the commercial production of high‑purity magnesium, widely used in lightweight applications including the automotive and aerospace sectors, in Western Australia using a low‑carbon process with reduced environmental impact. Hanwa Co. Ltd., a Japanese trading company, as well as the Government of Japan, has also expressed interest in this initiative.
  • Tivan Fluorite Project
    The Speewah Fluorite Project, located in Western Australia, is a Japanese Government‑supported initiative involving a joint venture between Sumitomo Corporation and JOGMEC, in collaboration with Tivan Limited, to produce acid‑grade fluorite, a key raw material for hydrofluoric acid used in semiconductors, EVs, and other advanced applications. It has also received a non-binding and conditional Letter of Support from EFA.
  • RZ Resources Critical Minerals Project
    The Copi Critical Minerals Project in New South Wales is a mineral sands project, looking to develop supply of critical minerals and rare earth elements, owned by RZ Resources, with participation from JX Metals Corporation and Marubeni Corporation. It has also received non-binding indications of support as a critical minerals project from EFA and the U.S. Export Import Bank.
  • Ardea Resources Kalgoorlie Nickel Project
    The Kalgoorlie Nickel Project – Goongarrie Hub is one of the largest nickel cobalt resources in Australia. The project is being developed as a joint venture with Ardea Resources, Sumitomo Metal Mining, and Mitsubishi Corporation. The Government of Japan has provided funding support under its economic security grant towards building a resilient and secure critical minerals supply chain. The project has received non-binding and conditional indications of support from EFA and the U.S. Export Import Bank. The Australian Government has selected Ardea to participate in its investor front door pilot, which aims to streamline project engagement with government.

Read more at: Department of the Prime Minister and Cabinet

Make America Mine Again (#MAMA): #US Senate narrowly overturns #Minnesota mining ban, sending bill to #Trump

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Winding river through green valley with mountains in sunset light

#MAMA Nationally or Internationally

Sunrise over a mining site with an American flag, a deer standing nearby, and a sign promoting responsible mining practices.

April 16 (Reuters) – The U.S. Senate on Thursday narrowly voted ​to overturn former President Joe Biden’s mining ban in northern Minnesota, agreeing with the House of Representatives and sending the ‌bill to President Donald Trump, who is expected to sign it.

The move reverses Biden’s 20-year block on mining across 225,504 minerals-rich acres (91,200 hectares) in the Superior National Forest and gives a major boost to Antofagasta’s, opens new tab Twin Metals copper, cobalt and nickel project, as well as other proposed mines in the region bordering Canada.

Environmentalists have ​long worried that the mine could damage the water-rich region, which is visited by more than 200,000 hikers and canoeists ​each year. Mining companies have said they believe minerals can be extracted safely.

Read more at: Reuters

#Brazil demands #RareEarthMinerals be processed at home as #US and #China compete

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Illustration of Brazil's map featuring a mining site within the country's outline, set against the backdrop of the Brazilian flag, with the text 'Rare Earth Minerals' at the bottom.

Brazil will require foreign partners to process rare earth minerals domestically as a condition for access to its reserves, a senior government official said this week, setting terms that could reshape how Chinese and Western firms compete for resources the country has long exported raw.

“Our doors of Brazil to foreign investment are open, but our position has matured,” Leonardo Durans, a senior official at Brazil’s industry ministry, said at a press conference with international media.

“The commitment we will demand from everyone is domestic technological development and job creation.”

Read more at: South China Mining Post

#LMEL (Lloyds Metals and Energy Limited) eyes #Cobalt from #Congo to #India through #US partnership

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An illustrative map highlighting global trade routes connecting North America, India, and Africa, emphasizing the exchange of minerals and technology. The image features icons representing strategic partnerships, resilient supply chains, and a cleaner future, with the tagline 'Stronger Together: Minerals. Trade. Progress.'

LMEL eyes cobalt from Congo to India through US partnership

Nagpur: Lloyds Metals and Energy Limited (LMEL), which has taken over CHEMAF Group, a mining company in the Democratic Republic of Congo (DRC), early this month by forming a joint venture with US’ Virtus Mineral Group, plans to get its share of cobalt from the African nation to India as well.

The sharing formula would depend on the agreement between Indian and American governments as the venture also has a US partner. CHEMAF’s mines are seen as a major non-Chinese source of cobalt, a critical mineral, especially when India doesn’t have any major resources of the metal.

“The production is expected to start within the current fiscal,” said LMEL’s managing director B Prabhakaran.

The company projects an initial output of 20,000 tonnes of cobalt and 60,000 tonnes of copper a year from the Congo mines. CHEMAF Group has mines in Congo’s Katanga belt, known to be among the biggest copper reserves in the world apart from having sizeable cobalt deposits.

The takeover of CHEMAF Group by the LMEL–Virtus combine is also seen as a major victory for the US government, as it could outmanoeuvre the Chinese players who were also eyeing the company.

Source: The Times of India

#Vale’s Ethanol Initiative: A Major Step in Decarbonizing Shipping

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A split image featuring a rocky shoreline on the left and a large cargo ship navigating through blue waters on the right, with the logo of Vale prominently displayed.

Vale and Shandong Shipping Corporation have concluded an agreement for new ethanol-powered Guaibamax vessels, which are scheduled for delivery starting in 2029. The agreement marks an unprecedented milestone for global iron ore transport: this is the first time in the maritime industry that ethanol will be used as the primary fuel on an ocean-going vessel. With the potential to reduce carbon emissions by around 90% compared to the use of heavy fuel oil, commonly used in shipping, the initiative reinforces Vale’s commitment to reducing its carbon emissions across the value chain and promoting decarbonization in the maritime sector, in line with ongoing discussions at the International Maritime Organization.

Read more at: Vale announces the world’s 1st ethanol-powered ocean-going vessel; carbon emission reduction can reach 90%  – Vale

How a deeper #US – #Burundi partnership could unlock #CriticalMineral and security gains

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Aerial view of a rugged landscape with a defined border, featuring rocky formations and lakes, under a cloudy sky.

Atlantic Council: A strategic opportunity

Burundi’s size makes it an ideal candidate for a targeted security partnership, one that would not overextend US defense resources. Its minerals, strategic position in the eastern DRC conflict, and active role in peacekeeping missions align closely with US interests on the continent.

Given that Burundi’s nickel and NdPr will inevitably be mined, the real question is whether this becomes another quiet win for Chinese industrial strategy—or proof that US security engagement can still shape global markets.

The United States risks missing a critical opportunity—particularly in the mining sector—if policymakers and defense actors do not move quickly to prioritize Burundi.

Read more at: https://www.atlanticcouncil.org/blogs/africasource/how-a-deeper-us-burundi-partnership-could-unlock-mineral-and-security-gains/

#Indonesia bets on nickel levy to break its #China habit

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A stylized image of Indonesia's map cut out from an Indonesian flag background, showcasing an industrial scene within the map outline.

Indonesia’s sweeping nickel downstreaming policy, launched in 2020, is entering a more consequential phase. Having successfully halted raw ore exports, the government is now preparing to deploy a more assertive instrument: an additional export levy on processed nickel products.

Energy and Mineral Resources Minister Bahlil Lahadalia, who also oversees investment, has made clear that the move is not merely about boosting state revenue but about navigating mounting global economic uncertainty and growing saturation in the base metals market.

The proposal is a direct response to the oversupply of lower-grade nickel products — such as nickel pig iron and ferronickel — which have flooded global markets from Indonesia’s rapidly expanding smelting sector.

This glut has depressed international nickel prices, eroding royalties and state income. From a mining economics perspective, the policy represents a large-scale market correction aimed at safeguarding the value of Indonesia’s strategic resources from being undervalued internationally.

The levy will target nickel derivatives produced through pyrometallurgical processes, particularly nickel pig iron and ferronickel, whose nickel content remains relatively low to mid-range.

Read more at: https://asiatimes.com/2026/04/indonesia-bets-on-nickel-levy-to-break-its-china-habit/

#BASF launches biggest overseas project in #China with green-powered mega-site

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Aerial view of an industrial site featuring large oil refinery structures, solar panels in the foreground, and wind turbines in the background, under a bright blue sky.

German chemical giant opens US$10 billion Zhanjiang complex, its largest overseas investment, as Beijing courts foreign capital.

Germany’s chemical giant BASF has launched operations at its China production base – its largest overseas investment to date – with a total outlay of €8.7 billion (US$10 billion), and the country’s first wholly foreign-owned large-scale Verbund site.

The company on Thursday inaugurated the world-scale complex in Zhanjiang, Guangdong province, designed to run entirely on renewable electricity.

A Verbund site is an integrated chemical complex where plants, energy use and materials are interconnected to maximise efficiency and minimise waste.

The site has brought 18 plants and 32 production lines into operation, producing more than 70 types of products spanning basic chemicals, intermediates and specialty chemicals for industries including transport, consumer goods, electronics, home care and personal care.

Read more at: https://www.scmp.com/business/article/3348021/basf-launches-biggest-overseas-project-china-green-powered-mega-site

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