Sustainability of Nickel Mining in the Development of the Electric Vehicle Industry in ASEAN

Nickel is a critical mineral for the global energy transition, with electric vehicle (EV) batteries projected to account for around 60% of global nickel demand by 2040. Southeast Asia – particularly Indonesia and the Philippines – hosts some of the world’s largest laterite nickel reserves, positioning the region as a strategic hub for EV battery production. This ERIA study, conducted in collaboration with Minviro, assesses the sustainability of nickel supply, the resilience of reserves, and the carbon footprint of nickel sulphate hexahydrate (Ni SO₄·6H₂O) production – a key precursor for lithium-ion batteries (LIBs) – to evaluate ASEAN’s potential role in transport decarbonisation.

The analysis employs supply–demand modelling, reserve depletion assessment, and life cycle assessment (LCA), complemented by life cycle costing (LCC). Findings indicate that nickel mining and processing in ASEAN are pivotal to supporting EV growth and advancing global climate goals. However, challenges such as reserve depletion risks, socio-environmental impacts, and energy-intensive processing underscore the need for proactive strategies – namely responsible mining, midstream and downstream integration, renewable energy adoption, and stronger governance – to ensure a sustainable and competitive nickel value chain.