The Market Monitor Minding the Nation's Business
By DIEGO C. CAGAHASTIAN
Things are developing fast for the nickel industry in Southeast Asia. If there is one good thing that happened in the ongoing 2026 Asean Sustainability Summit in Cebu City, it is this piece of news about the Philippines and Indonesia joining their resources and expertise together in the production of nickel.
Nickel is very much in demand these days. This industrial metal that can be recycled completely is behind the construction of modern buildings, airports and malls—wherever there are structures with stainless steel and alloys, nickel is there.
With the development of electric vehicles (EV), nickel took on an ever greater and broader importance as a key component in high energy density Lithium-ion batteries for EVs and renewable energy storage.
Because China has recently become the world’s leader in both electric vehicles and renewable energy, it is also the biggest buyer of nickel from both the Philippines and Indonesia—which after all are its neighbors in Southeast Asia.
While Indonesia realized early that they can profit more from their resources by banning export of raw nickel ore and focusing on selling processed nickel abroad, the Philippines is just now starting to cotton on.
Last Friday, the nickel associations of Indonesia and the Philippines on Friday signed a memorandum of understanding on nickel cooperation.
The memorandum of understanding was finalized on May 7, 2026, during which the two countries formed the “IndoPhil Nickel Corridor” that aims to create a dominant alliance in the global market for critical minerals.
Signatories to the memorandum are the Philippine Nickel Industry Association (PNIA) and the Asosiasi Penambang Nikel Indonesia, during the Indonesia-Philippines High-Level Business Roundtable in Cebu City.
The two countries that account for 80 percent of global nickel production wanted to ensure supply chain stability and prices.
The agreement also involves ore blending and technical cooperation and support for the Philippines in moving up the value chain from raw ore exporter to producing battery-grade materials using Indonesian expertise. It is also designed to enhance ASEAN’s role in the global electric vehicle (EV) and stainless steel supply chains.
The agreement includes the exchange of information, joint development of nickel downstream processing technology, and human resource development to support a sustainable nickel industry ecosystem.
The signing was witnessed by Indonesia’s chief economics minister Airlangga Hartarto and the Philippines’ trade and industry secretary Ma. Cristina A. Roque.
China as buyer
With its booming manufacturing sector, China has become a huge buyer of Indonesian and Philippine nickel.
Indonesia exported $9.73 billion of nickel products last year, and smelters in Indonesia required supplies with the proper silicon-to-magnesium ratio which can be supplied by the Philippines, it was reported by Reuters.
Out of the $9.42 billion PHL exports to China, the biggest components are electrical, electronic equipment, ores slag and ash, and copper. The ores totalled $1.87 billion.
It is both sad and concerning that the total nickel exports of Indonesia is even bigger than the total exports of all products and services of the Philippines to China in 2024.
China, of course, supports the growth and development of its Asean neighbors, particularly their local economies now that the West Asia war is continuing.
More than this, the cooperation between Indonesia and the Philippines, and their robust trade relations with China, is evidence that regional economies and trade in the general area of the South China Sea can function well and develop without the interference of Western powers like the United States.