Exploring the Potential for EV Development in the Mining and Nickel Industry

Jakarta, CNBC Indonesia - The transformation towards electrification in the mining and nickel industries is becoming increasingly evident. This is because the use of electric vehicles (EVs) can reduce the amount of carbon dioxide (CO2) emissions produced in that sector.

Executive Director of the Indonesian Coal Mining Association (APBI) Gita Mahyarani stated that the electrification trend has been actively pursued over the past 2-3 years. The urgency to optimise electrification in the mining sector is growing amid the trend of rising global oil prices.

“But, when we talk about coal mining, especially for companies, their resilience varies. If we talk about electrification again, the investment or capex is quite substantial. This year, we are facing considerable pressure in coal production, which has been significantly cut, so this also presents a challenge for us in the coal industry,” Gita said during the EV Transition In Mining Industry Outlook 2026 “The Future Of EV’s In Mining Industry: Between Efficiency and High Investment” event on Wednesday (29/4/2026).

Gita explained that there are already a dozen APBI member mining companies that have adopted EVs. Most other members are still in the trial phase of utilising such vehicles. Nevertheless, APBI views the potential for EV implementation in the mining industry as very promising in the future.

However, the substantial investment required by companies and the certainty of electricity grid infrastructure remain the main challenges in EV adoption in the mining sector. In fact, adequate electricity networks are key to supporting the operation of electrification-based equipment in mining areas.

“But again, according to us, the very large capex is currently a challenge for the coal industry. But EVs are something promising because we will also see it from the ESG perspective, where if EV use can be implemented from upstream to downstream, there will certainly be a reduction in emissions from scope 1, which will shift to scope 2,” she clarified.

If regulations on EV use are enforced, EV prices are expected to become more affordable for each mining company. As a result, EV adoption in that sector will accelerate and expand.

In the same opportunity, the Supervisory Board of the Indonesian Nickel Miners Association, Djoko Widajatno, agreed that the transition to electrification in the nickel industry still faces several challenges. Indonesia indeed controls around 65% of the world’s nickel reserves. However, pressure from the global market regarding Environmental, Social, and Governance (ESG) standards demands that Indonesia meet those rules while improving efforts to reduce emissions.

“Well, one of the components is certainly reducing CO2 emissions. How to do it? Yes, we try to implement electric vehicles, electric equipment and so on. But as mentioned earlier, this is capital intensive. Meanwhile, the number of nickel miners is only 418, from large ones covering 45,000 hectares to those covering 800 hectares,” he said.

Djoko explained that large companies such as PT Vale Indonesia Tbk (INCO) and PT Aneka Tambang Tbk (Antam) are likely already implementing electric heavy equipment up to heavy dump trucks. In contrast, smaller-scale companies still rely on conventional vehicles, not yet hybrid.

“The challenge, of course, if we look at it now, nickel is under pressure. Pressured by fuel issues, then pressured by ESG regulations and so on. From the miners’ perspective, it’s quite difficult to incorporate electric vehicles into their mines,” he stated.

In line with Gita, Djoko also acknowledged that the investment costs for electrification in the mining sector are very high, in other words, 2-3 times more expensive than current equipment. On the other hand, the national nickel industry is still considered a dirty industry by outsiders, so its prices are still pressed as low as possible by the market.

“But hopefully, we can overcome this by implementing electrification programmes in mining equipment and we can dominate the global market because we can utilise ESG. Thus, if the country becomes a superpower, the traders are happy, and the people are prosperous,” he emphasised.