According to news from the Haidong Industrial Park, on April 20, the key project introduced by the Haidong Industrial Park in Qinghai Province — the sodium-ion battery and energy storage equipment manufacturing project of Qinghai Zhaorui New Energy Technology Co., Ltd. — officially broke ground.

[Study Finds EVs Outperform Comparable Internal Combustion Engine Vehicles in Crash Safety] Despite ongoing consumer concerns about EV battery safety, particularly the risk of fire after collisions, real-world test data from independent organizations such as Euro NCAP, ASEAN NCAP, and NHTSA showed that EVs are progressively establishing new safety standards, with their crash test performance generally surpassing that of comparable internal combustion engine vehicles. This advantage of EVs is not coincidental but stems from design philosophies and technical architectures that are fundamentally different from those of traditional internal combustion engine vehicles.

Samsung SDI has entered into a multi-year agreement with Mercedes-Benz to supply high-nickel NCM batteries for the automaker’s next-generation electric vehicles. This marks the first time Samsung SDI has provided automotive power batteries to Mercedes-Benz. The two companies held a signing ceremony in Seoul. Under the agreement, the supplied batteries will feature high energy density, long range, long lifespan and high power, and will be equipped with Samsung SDI’s proprietary safety technologies. Mercedes-Benz plans to use these batteries in its future compact and mid-size all-electric SUVs and coupe models. In addition, the two companies will expand their strategic cooperation by jointly developing next-generation power battery technologies.

SMM, April 16: Dealers in Hunan reported that end-use consumption in the e-bike lead-acid battery market remained sluggish, with retailers purchasing cautiously. Current battery inventory stood at approximately one month. There were no signs of sales promotions in the battery wholesale market, with the mainstream model 48V20Ah priced at 380-400 yuan/set. Manufacturers in Jiangxi reported that the e-bike lead-acid battery market was in the off-season, with finished product orders continuing to weaken and battery inventory accumulating. Factory operating rates had dropped to 60-70%. Additionally, lead prices surged significantly today, and raw material lead procurement remained on the sidelines. Manufacturers in Jiangsu reported that e-bike replacement demand was weakening, while OEM orders for complete vehicles were moderate. Factory operating rates were maintained at around 90%, with raw material lead procurement primarily through long-term contracts.

SMM April 13: Dealers in Jiangsu reported that replacement demand in the electric storage battery market remained weak, with retailers extending their restocking cycles. Current battery inventory stood at approximately one month. Additionally, battery wholesale selling prices remained unchanged, with the main model 48V12Ah priced at 280-300 yuan/set. Manufacturers in Zhejiang reported sluggish consumption in the electric storage battery market. Coupled with mediocre OEM orders overall, factory production line operating rates were at 70-80%. Considering raw material cost factors, battery selling prices had not been adjusted for the time being, with future adjustments to be determined based on market conditions. Manufacturers in Jiangxi reported that the electric storage battery market had entered the consumption off-season, with finished product orders weakening. To avoid inventory accumulation, factory operating rates were currently at approximately 80%. Additionally, lead prices weakened today, and factories purchased raw material lead as needed.

SMM, April 9: Dealers in Anhui reported that e-bike lead-acid battery replacement demand was sluggish, with slow digestion of battery inventories. Meanwhile, lead prices rose compared to March, pushing up battery production costs. The battery wholesale market has not yet launched sales promotions as it typically does during the off-season, with the mainstream model 48V20Ah currently priced at 390-400 yuan/set. Manufacturers in Jiangxi reported that the e-bike lead-acid battery market entered the consumption off-season, with declining dealer purchasing enthusiasm. To ease finished product inventory pressure, production in April plans to be reduced by approximately 10% compared to March, and raw material lead is primarily procured through long-term contracts. Manufacturers in Zhejiang reported that e-bike lead-acid battery market demand turned sluggish, with finished product orders in April already significantly lower than in March. To avoid inventory accumulation, factories took a three-day holiday for the Qingming Festival, and production is currently on a produce-based-on-sales basis.

The United States currently operates no domestic nickel smelters, leaving North America entirely reliant on just two remaining pyrometallurgical facilities in Canada. Compounding this critical supply chain vulnerability, a recent report by the Carnegie Endowment for International Peace projects that the US will face a massive annual nickel deficit of approximately 741,987 tonnes by 2035. To address this severe shortfall, awaruite (a naturally occurring nickel-iron alloy) is emerging as a strategic solution. Because awaruite concentrate can bypass traditional smelting and be directly converted into nickel sulfate, it is favorably positioned to qualify for the US Section 45X Advanced Manufacturing Production Credit, helping to secure domestic defense and EV battery supply chains.

Recently, Hyundai Motor Group signed a cooperation agreement with Zhejiang Huayou Recycling Technology Co., Ltd. to jointly build an EV power battery recycling system in Indonesia. The cooperation covers the recycling and reuse of battery production scrap and end-of-life batteries, aiming to achieve a closed-loop resource system across the entire battery life cycle. Background of the Cooperation As the world’s largest nickel producer, Indonesia is pushing with unprecedented determination to transform itself from a raw material exporter into a global EV battery manufacturing hub. According to the Indonesian government’s plan, by 2030 the country will achieve total EV battery capacity of 100 GWh and plan to produce about 600,000 pure EVs annually. The HLI Green Power battery plant, jointly established in Indonesia by Hyundai Motor Group and LG Energy Solution, is a key part of this strategy. Located in Karawang, West Java, the plant has a total investment of $1.1 billion and began operations in 2024. It has annual capacity of 10 GWh and can supply battery cells for more than 150,000 EVs. The plant mainly supports EV models of Hyundai Motor Group in Southeast Asia, India, and other markets. However, with the rapid expansion of battery capacity, the disposal of end-of-life batteries and manufacturing scrap has become an increasingly prominent issue. The Indonesia Battery Association forecasts that by 2030 the country’s end-of-life power batteries will reach 120,000 mt. But the existing recycling system has clear shortcomings: insufficient processing capacity, lack of technical standards, and more than 70% of processing handled through informal recycling channels. In the suburbs of Jakarta, multiple open-air acid-leaching lithium workshops have even emerged, causing soil heavy metal levels to exceed EU limits by 50 times. This cooperation carries multiple implications for the development of Indonesia’s battery industry and even that of Southeast Asia as a whole: Improving the Local Industry Chain: Through the New Energy Law, the Indonesian government has designated EVs as a national strategic industry and requires foreign automakers to commit to building battery plants in Indonesia, with 40% local sourcing of parts to be achieved by 2027. The cooperation between Hyundai Motor and Huayou Recycling helps Indonesia build a complete industry chain spanning mineral extraction, battery manufacturing, and recycling. Addressing Resource Challenges: Although Indonesia is rich in nickel resources, it produces almost no cobalt, and its lithium resources depend on imports from Australia. Through battery recycling, it can partially reduce its import dependence on critical minerals and improve resource security. Attracting More Investment: The Indonesian government has introduced fiscal incentives such as zero import tariffs, exemption from luxury sales tax, and a reduction in VAT from 11% to 1%, to attract foreign investment into the battery industry. The battery recycling cooperation in Indonesia between Hyundai Motor Group and Huayou Recycling is not only a commercial move by the two enterprises, but also a reflection of the global battery industry's transition toward a circular economy. With the rapid expansion of the EV market, battery recycling has shifted from an environmental protection issue to a matter of resource strategy and economics.

Recent volatility in the Indonesian commodities sector has been driven by mixed signals regarding new fiscal policies. Market participants are currently evaluating the implications of two distinct regulatory mechanisms: a broader windfall tax on bulk commodities like coal, nickel, and a targeted export duty. The conflation of these two policies has generated significant market uncertainty, culminating in a sharp spike in global nickel prices this week. To understand the current market anxiety, which culminated in a sharp spike in global nickel prices this week, it is essential to unpack the timeline of these policy discussions, differentiate the fiscal mechanisms at play, and assess the likelihood of their implementation. Background: From Broad Windfall Deliberations to Targeted Export Tariffs The narrative surrounding new commodity taxes in Indonesia did not emerge overnight; rather, it has evolved through distinct phases of policy signaling. The current policy discourse has evolved in phases. Initial discussions, highlighted by statements from Coordinating Minister for Economic Affairs Airlangga Hartarto on Mar 13, 2026, focused on the potential implementation of a windfall tax. This broader fiscal measure was aimed at capturing excess margins from exporters of coal, palm oil, and base metals, such as nickel, gold, and copper during periods of elevated global prices, functioning primarily as a macroeconomic revenue-generation tool. However, the conversation shifted dramatically on March 25, 2026. According to Bloomberg, news broke that Indonesia’s President had officially approved an export tax specifically targeting coal and nickel. This headline acted as an immediate catalyst, sending LME and SHFE nickel prices spiking. The confusion currently gripping the market stems from the conflation of these two distinct policy trajectories: the older, revenue-focused windfall tax concept championed by economic ministers, and the newly approved, strategically focused nickel export tax aimed at forcing further downstream industrialization. Analysis & Understanding: The Precedent of the "Windfall Tax" To accurately gauge the impact of these rumors, it is critical to understand that the concept of a "windfall tax" is not entirely unprecedented in Indonesia's regulatory framework, particularly for bulk commodities. There has actually been a windfall tax structure in place previously, though often masked under the nomenclature of progressive royalties and non-tax state revenues (PNBP). For the coal sector, the government already utilizes a tiered royalty system pegged to the Harga Batubara Acuan (HBA) benchmark. As coal prices escalate into higher brackets, the royalty percentage automatically increases, effectively acting as a windfall capture mechanism. Similarly before, the nickel sector utilizes the Domestic Benchmark Price (HPM) and associated royalty structures to adjust to global price rallies. It is crucial to note that the government has previously experimented with specific windfall profit provisions for downstream products, though the regulatory stance has recently hardened. For instance, under Government Regulation (GR) No. 26/2022, a unique windfall profit incentive was applied to nickel matte: when prices exceeded $21,000 per ton, the royalty rate was actually reduced from the standard 2% to 1%. (Old Version) However, this accommodating policy was explicitly abolished under the recent GR No. 19/2025. The removal of this incentive underscores a definitive shift toward more aggressive state revenue capture. Consequently, the recent "windfall tax" rumors primarily concern further tightening these existing brackets or introducing a supplementary surcharge on operating margins above a specific baseline. (New Version) Conversely, the newly approved nickel export tax serves a different primary function. Therefore, it is completely different than the concept of windfall tax. Rather than merely earning from peak profits, an export duty on semi-processed nickel (like NPI, MHP, FeNi, and Nickel Matte) is a structural tool designed to penalize the export of lower-value products. It is the natural continuation of Indonesia’s downstreaming ( hilirisasi ) agenda, intended to force producers to build stainless steel and EV battery precursor plants domestically in Indonesia, rather than shipping intermediate goods to other countries. While a windfall tax fluctuates with market prices, an export tax acts as a permanent structural cost added to the global supply chain. Conclusion: Imminent Implementation Amidst Ongoing Deliberations Despite definitive headlines regarding executive approval and the targeted April 1, 2026 implementation date, the exact implementation details are currently under review by the relevant ministries. Currently, specific details, including exactly how the proposed 5%, 8%, and 11% tiers might translate from coal to specific nickel material classifications (e.g., NPI, MHP, and high-grade matte), must be urgently finalized ahead of the April deadline. The Ministry of Energy and Mineral Resources (ESDM), the Ministry of Finance, and the Coordinating Ministry for Maritime and Investment Affairs are working to balance state revenue optimization with the need to maintain the global cost-competitiveness of domestic smelters. This deliberative phase should not be interpreted as a policy reversal. According to SMM's understanding and industry checks, the implementation of these fiscal measures is highly probable. While the exact rollout of tariffs may be structured to mitigate immediate operational shocks to the domestic smelting sector, the fundamental policy direction indicates that the era of tariff-free exports for intermediate nickel products might decisively coming to an end.

South Korea’s Ministry of Land, Infrastructure and Transport announced that it will pre-announce amendments to the Enforcement Decree and related regulations of the Automobile Management Act to enhance safety management of batteries used in electric vehicles. The revisions include expanded information disclosure and stricter criteria for certification revocation. Under the new rules, consumers will be able to access more detailed information when purchasing EVs, including the battery’s country of origin, manufacturer, and production date.