ASIATODAY.ID, JAKARTA – Indonesia Nickel Industry Hit by Sulfur Squeeze as Global Market Tightens, with state mining holding MIND ID accelerating efforts to develop domestic sulfur sources to support its rapidly expanding nickel downstream sector amid global supply disruptions and rising prices.
The company is exploring the use of by-products from copper and gold mining operations as alternative sources of sulfur, a critical input for nickel processing used in electric vehicle battery supply chains, a company official said on Tuesday.
MIND ID Director of Mineral Resources Processing Planning Budi Santoso said the initiative is part of a broader strategy to strengthen Indonesia’s mineral supply resilience.
“We have by-products from copper and gold that contain iron sulfate, which can be processed to extract sulfur or converted into sulfuric acid,” he said on June 23, 2026.
Sulfur is a key component in the high-pressure acid leach (HPAL) process used to refine low-grade nickel ore into mixed hydroxide precipitate (MHP), a precursor material for EV batteries.
Industry data shows that producing one ton of MHP requires around 11.7 tons of sulfur, making it one of the most critical inputs in Indonesia’s nickel value chain.
More than 70% of sulfur used in Indonesia’s nickel industry is still imported, with most supplies sourced from the Middle East. Total imports are estimated at around 5.3 million tons per year.
Geopolitical tensions in the region have disrupted supply flows and driven sharp price increases. Arif Perdana Kusumah, chairman of the Indonesia Nickel Industry Forum (FINI), said sulfur prices have surged in recent months.
“Sulfur prices are currently around 1,200, compared with about 250 last April,” he said at an industry forum in Jakarta.
The supply shock has prompted producers to diversify sourcing to countries including Canada, the United States, and South Korea to mitigate short-term risks.
Beyond sulfur, MIND ID also highlighted Indonesia’s continued reliance on imported lithium for battery production, underscoring broader vulnerabilities in the EV supply chain.
Budi said Indonesia should intensify research into nickel-based battery technologies, leveraging its vast domestic reserves as a competitive advantage.
“We should push research so that nickel-based batteries become more efficient than lithium-based ones,” he said.
Analysts said strengthening domestic supply chains is key to Indonesia’s long-term downstream strategy, which has so far focused on smelter expansion and value-added mineral processing.
“If we only focus on early-stage processing, the economic benefits will eventually diminish as resources are depleted,” said Mohammad Faisal of the Center of Reform on Economics (CORE) Indonesia.
Indonesia, holder of the world’s largest nickel reserves, is seeking to deepen its position in the global electric vehicle battery supply chain amid intensifying competition and exposure to critical mineral supply shocks. (AT Network)
Follow Us at Google News and WA Channel