South Korea seeks incentives to deepen nickel partnership with Indonesia
Nickel-based batteries used by many South Korean manufacturers face increasing competition from lithium iron phosphate (LFP) batteries, which contain no nickel and are generally cheaper to produce.
South Korea is seeking incentives and regulatory support from Indonesia to strengthen its partnership in the critical minerals sector, particularly in the context of nickel-based batteries. As lithium iron phosphate (LFP) batteries gain popularity due to their lower nickel content, they pose a competitive threat to nickel-based batteries, which are essential components of South Korean manufacturers' electric vehicles (EVs).
During a recent discussion with the South Korean Embassy, Uhm Taeho, counsellor and political section chief, emphasized the need for Indonesia to provide incentives and ease regulations on nickel-based batteries. This request builds upon a critical minerals partnership formalized during President Prabowo Subianto's visit to South Korea in March.
The agreement encompasses trade, investment, environmental standards, and mine rehabilitation in key projects. As South Korea aims to maintain its position in the rapidly growing global EV market, which saw a 21% increase in 2025, securing incentives from Indonesia becomes crucial for the country's EV supply chain and its position in the battery industry.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
