Indonesia and the Philippines have formalised a strategic alliance to unify the regional nickel industry, effectively creating a nickel cartel that controls nearly three-quarters of the world’s mining output, Philippine News Agency reports. The agreement was signed at a high-level business roundtable on the sidelines of the 48th ASEAN Summit, where President Prabowo Subianto and Philippine business leaders outlined a roadmap to integrate their critical mineral supply chains.

The partnership, solidified through a Memorandum of Understanding between the Indonesian Nickel Miners Association and the Philippine Nickel Industry Association, signals a shift from raw commodity export to high-value industrial processing.

Based on 2025 USGS data, the combined weight of these two neighbours makes them the undisputed centre of the global battery supply chain. Indonesia (2.6mn metric tonnes) and the Philippines (270,000 metric tonnes) together contribute 73.6% of global nickel mining production.

Indonesia holds approximately 62mn metric tonnes of reserves, while the Philippines holds 4.8mn metric tons, creating a multi-decade supply floor. A major new agreement will see a minimum monthly nickel supply of 200,000 metric tonnes shipped starting in June 2026 to support regional manufacturing.

The collaboration is designed to move both nations up the value chain toward Electric Vehicle (EV) battery production. Plans were announced for a new nickel processing plant in the Philippines involving Agro Investama Group, RBN Solutions, and Ploutus Inc. The groups will collaborate to develop unified ESG (Environmental, Social, and Governance) methodologies, which are critical to meeting the strict green compliance standards required by European and North American EV manufacturers. The forum also secured an $80mn deal in agricultural technology and aviation maintenance between Garuda Maintenance Facility and JAR Aviation Services.

Bernardino Moningka Vega of Kadin Indonesia and Ferdinand Ferrer of the PCCI emphasised that this bilateral link is a defensive move against global geoeconomic volatility. By combining their markets, which represent a population of nearly 400mn, the two countries aim to dictate terms to global buyers rather than remain passive price-takers.

For Indonesia, the deal secures raw material depth for its downstream ambitions. For the Philippines, it offers a shortcut to industrialisation through Indonesian investment and technical expertise.