Indonesia plans to impose a tax on electric vehicle (EV) battery metal exports this year, including nickel, to encourage more domestic production of EVs and boost tax revenues. Indonesia is the world\u2019s largest producer of nickel with an output of about 1 million metric tons and 2021 and is home to almost a quarter of global nickel reserves. The growing EV market has prompted a surge in demand for EV battery metals such as nickel, lithium, and cobalt.<\/p>\n\n\n\n
Our View:<\/strong> Tax will keep EV battery metal prices elevated including nickel. Recall that earlier this year, Indonesia imposed a temporary ban on the export of palm oil when there was a short supply globally. The plan to impose a tax on EV battery metals, including nickel, should keep the prices elevated in the near-term.<\/p>\n\n\n\n Once news of the tax came out, nickel-related stocks saw gains: NIKL (+6.80%), FNI (+5.68%) & MARC (+6.47%). While we don\u2019t expect global nickel prices to reach the highs of early March, we expect prices to remain elevated for the remainder of the year as weather conditions may continue to affect production (typically rainy season in the second half).<\/p>\n\n\n\n Nevertheless, any rise in nickel prices should be a bonus for local nickel stocks.<\/p>\n","protected":false},"excerpt":{"rendered":" Here’s a commentary on an important issue or event affecting the stock market <\/p>\n","protected":false},"author":6,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[],"class_list":["post-316733","post","type-post","status-publish","format-standard","hentry","category-special-reports","generate-columns","tablet-grid-50","mobile-grid-100","grid-parent","grid-33"],"_links":{"self":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316733","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/users\/6"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/comments?post=316733"}],"version-history":[{"count":2,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316733\/revisions"}],"predecessor-version":[{"id":320489,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/posts\/316733\/revisions\/320489"}],"wp:attachment":[{"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/media?parent=316733"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/categories?post=316733"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pinoyinvestor.com\/smartinvestor\/wp-json\/wp\/v2\/tags?post=316733"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}