The Role of the Sulawesi Nickel-Mining Industry in the Globalization of the Electric-Vehicle Industry

Abstract

This article analyzes the role of the nickel mining industry in Sulawesi within the globalization of the electric vehicle (EV) industry. The rapid growth of the global EV market has significantly increased demand for critical minerals, particularly nickel as a key component in lithium-ion batteries. Indonesia, as the world’s leading nickel producer, has become strategically positioned within the global value chain of the EV industry. Using a qualitative descriptive approach and literature review method, this study examines the relationship between global EV expansion, Indonesia’s nickel production growth, and the spatial concentration of mining and processing activities in Sulawesi. The findings indicate that Sulawesi plays a crucial role as an upstream supplier in the global production network. However, despite Indonesia’s dominance in nickel production, higher value-added activities remain concentrated in countries that control battery technology and advanced manufacturing. The study concludes that Indonesia’s integration into the global EV industry presents both opportunities for industrial upgrading and challenges related to technological dependence and global value chain hierarchy. Strengthening domestic processing capacity and sustainable resource governance is essential to enhance long-term national competitiveness