Within just one decade, Indonesia has become the world's largest nickel producer, driven by Chinese financing and construction that formed the backbone of its mining boom. However, as demand declines, a growing portion of Indonesia's production is being sent to London Metal Exchange warehouses instead of electric vehicle battery factories. But the stark paradox today is that China, which propelled this sector to its peak, is no longer sure of its need for such large quantities, as Chinese electric vehicle manufacturers are moving away from nickel-based batteries. Global stocks of refined nickel have jumped from 54,000 tons in January 2023 to 366,000 tons, equivalent to 10% of consumption.
