According to foreign media reports on November 8th, the Presidents of the United States and Indonesia are set to meet on Monday, Eastern Time, to discuss how to advance a potential mineral partnership, thereby stimulating the trade of nickel resources.
U.S. and Indonesia May Advance Nickel Mining Deal
A source informed that Indonesian President Joko Widodo will visit the White House to meet with U.S. President Biden on Monday, Eastern Time. The meeting is expected to discuss steps towards formal partnership negotiations between the two countries.
Indonesia possesses the world’s largest nickel reserves and is also the largest supplier of nickel globally. Since September this year, Indonesia has been urging the U.S. to start discussions on a key mineral trade agreement, aiming to include Indonesian nickel exports under the U.S.’s Inflation Reduction Act (IRA).
However, concerns remain regarding Indonesia’s nickel mining practices, which have been criticized for severe deforestation and water pollution. The Biden administration is apprehensive about Indonesia’s Environmental, Social, and Governance (ESG) standards and is exploring ways to reach an agreement. The administration also plans to consult further with U.S. lawmakers and labor organizations in the coming weeks.
“A lot of work remains to be done before we can formally announce negotiations on a critical mineral partnership,” said a source.
The Biden administration is also discussing how to exclude nickel mined in Indonesia but processed in China from the IRA tax credits.
The focus of the Biden administration’s discussions is to ensure minimal environmental impact from nickel supply: “The overall momentum is positive, but we don’t want to downplay the fact that there’s still a significant amount of work to be done,” the source added.
Challenges in U.S. Domestic Nickel Supply
Nickel is a key battery material. It’s estimated that despite an oversupplied market, the global market value of the nickel industry had reached $33.5 billion by the end of 2022.
Despite President Biden’s goal to “lead the electric vehicle manufacturing in the U.S.,” the country’s only nickel mine is set to close in a few years. Currently, there are no nickel smelting facilities in the U.S., posing a threat to Biden’s objective.
Last year, the U.S. government granted nearly $115 million to Talon Metals, partly funding a nickel processing plant in North Dakota, which will supply Tesla.
Talon Metals is seeking permits for its proposed nickel mine in Minnesota but faces local opposition. Many U.S. miners suggest that the Biden administration should focus more on approving domestic projects rather than seeking international supplies.
[Source– 上海有色网] 美国与印尼将讨论镍矿交易 但ESG标准或成“拦路虎” https://news.smm.cn/news/102468667