Indonesia is considering a moratorium on new nickel smelters to address global overproduction and protect its minerals sector, a move that could significantly disrupt Chinese investors who account for roughly 75 percent of Indonesia's nickel refining industry. The proposed restrictions would target semi-finished products like nickel pig iron and nickel matte, which comprise 50-60 percent of Indonesia's output and are used in stainless steel and electric vehicle batteries. Energy Minister Bahlil Lahadalia is preparing recommendations for President Prabowo Subianto on which smelting segments should be restricted.
Battery storage is now cheaper than open-cycle gas turbines across all 43 markets surveyed by Wood Mackenzie, with battery costs expected to continue declining while gas turbine expenses rise. Solar remains the cheapest new power source globally, though U.S. solar faces near-term tariff pressures. The shift away from gas turbines will be most pronounced in the Middle East, Africa, and China by 2035.
Data center operators are extending GPU server lifecycles beyond initial payback periods, with companies like NBIS and IREN showing strong profitability through sustained utilization and long-term contracts. IREN's $16.6B in remaining obligations and secured 5GW power capacity suggest significant upside relative to its $15B market cap, while battery technology remains critical for data center infrastructure resilience and GPU protection.
BYD is exploring a potential lithium battery manufacturing plant in Argentina after meeting with the foreign minister, as part of broader investment in the country's lithium value chain. The Chinese EV maker has been selling imported vehicles in Argentina since October and is leveraging Brazil production for regional supply, while reconsidering manufacturing plans following a failed cathode plant project in Chile.