Jakarta (VNA) - Indonesia and the Philippines have signed a landmark agreement to establish a "Nickel Corridor," integrating their massive resources to secure global supply chains for electric vehicle batteries and stainless steel production.
The Memorandum of Understanding has been signed in Cebu between the Indonesian Nickel Miners Association and the Philippine Nickel Industry Association.
This partnership creates a formidable trade bloc, as 2026 USGS data showed these two nations controlled a combined 73.6% of global nickel production in 2025.
Indonesian Coordinating Minister for Economic Affairs Airlangga Hartarto, who witnessed the signing, emphasised that this is not a standard business deal. This is the foundation for the Indonesia-Philippines Nickel Corridor, a structured platform connecting Indonesia's downstream smelter strength with the upstream ore supply from the Philippines.
The collaboration addresses a critical technical and logistical need for Indonesia’s massive smelting industry. To produce high-quality battery materials, Indonesian smelters require specific ore blends that the Philippines can provide through precise silicon-to-magnesium ratios.
Under this agreement, Indonesia leverages its status as the holder of 44.5% of world reserves, while the Philippines secures a role in a high-value regional chain.
Airlangga noted the Philippines will no longer only be an exporter of raw ore. It will be integrated into a higher regional value chain, while Indonesia gains feedstock security for its battery and stainless steel industries.
The Indonesian government targets 47.36 billion USD in investment and the creation of 180,600 jobs by 2030. To accelerate this, Indonesia is promoting Special Economic Zones (SEZs) as hubs for international-standard battery innovation./.
