The global race for critical minerals has intensified as nations strive to secure resources essential for the energy transition. These minerals, including lithium, nickel, and cobalt, are concentrated in a few countries, with China dominating the refining and processing stages. This concentration has created supply chain vulnerabilities, prompting nations like Indonesia to adopt proactive strategies.

Indonesia, a key player in the critical minerals sector, must leverage its position to enhance its role in global supply chains. The country should advocate for investment in refining capacities within resource-rich nations, promoting cost-effective and timely alternatives to mining. Additionally, Indonesia could influence global norms on development and technology access, particularly through the UN Panel on Critical Energy Transition Minerals (CETM).

A regional approach, partnering with countries like Australia and the Philippines, could establish a robust EV battery industry and diversify Indonesia’s partnerships beyond China. Moreover, Indonesia should engage in international discussions on deep-sea mining, ensuring regulations balance environmental protection with economic development. To capitalize on its critical minerals potential, Indonesia must secure international collaborations that advance sustainable mining, refining, and manufacturing practices.

Article by Pandu Utama Manggala for East Asia Forum. Read more here.