After the Indonesian government confiscated part of the Weda Bay nickel mine held by China's Tsingshan Holding Group, nickel prices on the London Metal Exchange (LME) rose 1% to $15,305 per ton. The confiscated area is 148 hectares, allegedly due to license violations.Weda Bay is the world's largest battery-grade nickel production base, jointly developed by Tsingshan Holding and France's Eramet.
After the confiscation, LME nickel futures prices rose 1% in a single day, while other industrial metals showed mixed performance: copper up 0.1%, aluminum up 0.2%, lead down. Given that Indonesia contributes over 50% of global nickel supply, and recently due to rainy seasons and export quota restrictions, Indonesian nickel smelters have faced raw material shortages.
President Prabowo also emphasized a crackdown on illegal mining, and analysts pointed out that this incident highlightsthe policy risks of Indonesia as a major nickel producer, which may exacerbate volatility in the global electric vehicle battery supply chain.
After the Indonesian government confiscated part of the Weda Bay nickel mine held by China's Tsingshan Holding Group, nickel prices on the London Metal Exchange (LME) rose 1% to $15,305 per ton. The confiscated area is 148 hectares, allegedly due to license violations.Weda Bay is the world's largest battery-grade nickel production base, jointly developed by Tsingshan Holding and France's Eramet.
After the confiscation, LME nickel futures prices rose 1% in a single day, while other industrial metals showed mixed performance: copper up 0.1%, aluminum up 0.2%, lead down. Given that Indonesia contributes over 50% of global nickel supply, and recently due to rainy seasons and export quota restrictions, Indonesian nickel smelters have faced raw material shortages.
President Prabowo also emphasized a crackdown on illegal mining, and analysts pointed out that this incident highlightsthe policy risks of Indonesia as a major nickel producer, which may exacerbate volatility in the global electric vehicle battery supply chain.