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Like Musk, nickel-rich Indonesia has high electric vehicle ambitions

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Armed with the world’s largest reserves of nickel and a ban on the export of nickel ore, Indonesia is making itself indispensable for the electric vehicle industry, which uses the metal extensively.

In just three years, Indonesia has signed more than a dozen deals worth more than $15 billion for battery and electric vehicle production in the country with manufacturers including Hyundai Motor 005380.KS, LG Group 003550.KS and Foxconn 2317.T.

Next up is the mammoth Tesla Inc TSLA.O, the world’s most valuable automaker. President Joko Widodo has pulled out all the stops to convince CEO Elon Musk to manufacture electric vehicles or batteries in the sprawling Southeast Asian archipelago.

“I’m very confident this industry will grow quickly, will grow very fast,” the president, popularly known as Jokowi, said in an interview last week.

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Indonesia has a total of 21 million tonnes in proven reserves with nickel content, according to the U.S. Geological Survey. That is nearly a quarter of the world’s reserves.

The country mined 1.4 million tonnes of nickel in January-November last year, according to the International Nickel Study Group. That’s far ahead of the second-biggest producer, the Philippines, which mined 290,000 tonnes in the same period, and more than double Indonesia’s output of 606,000 tonnes in 2018.

Jokowi banned exports of nickel ore in 2020, but allowed export of higher value nickel products – forcing companies to process and manufacture onshore.

Indonesia’s exports of processed nickel then swelled to more than $30 billion in 2022 from about $1 billion in 2015.

Indonesia is expected to account for half of the global production increase in nickel between 2021 and 2025, according to the International Energy Agency, as demand for electric vehicles surges. Each vehicle uses up to 40 kg of nickel.

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“The Indonesian government is building a whole value chain for servicing electric vehicle factories,” said Victor Chin, principal consultant at metal consultancy firm CRU.

“So it only makes sense for Tesla to consider Indonesia, both for a gigafactory and also for car manufacturing,” he said.

Musk’s goal is to sell 20 million electric vehicles in 2030, more than a 15-fold increase over the 1.3 million vehicles Tesla sold in 2022. For that, it would need to build seven or eight more “gigafactories” – facilities that produce electric car batteries on a large scale – at an average of one every 12 months or so.Read full story

Indonesia has similarly ambitious goals – Jokowi said in the interview nickel exports can grow by 200 times from pre-export ban levels of around $1 billion if the country successfully manages to build the electric vehicle ecosystem. Brazilian mining company Vale VALE3.SA has predicted a 44% jump in nickel demand by 2030 from 2022 levels due to high demand for batteries meant for electric vehicles.

Jokowi did not give a timeline for the exports growth but said Indonesia was aiming to establish an integrated supply chain for electric vehicle batteries by 2027.

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In other moves, Indonesia will also ban exports of copper ore and bauxite in June, both of which are used in electric vehicle production.

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The nickel export ban has been challenged at the World Trade Organisation by the European Union. The WTO ruled in the EU’s favour, but Indonesia has filed an appeal.

But Indonesia’s success has already prompted other countries to emulate its steps, with the Philippines planning to tax exports of nickel ore to encourage miners to invest in processing.

The development of the industry in Indonesia is a pet project for Jokowi. He has taken it upon himself to convince Musk to invest in Indonesia, holding talks with the Tesla chief twice.

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Last week, Jokowi said he has even offered Tesla a nickel mining concession and tax breaks to invest in the country, and that he was confident a deal would be finalised.

While Tesla is looking for additional manufacturing hubs, it has not commented on any firm plans in Indonesia. South Korea, Canada and Mexico have also been trying to entice the carmaker.

The company has signed nickel sourcing contracts worth about $5 billion from companies in Indonesia, a government official has said.

One area of concern for potential investors is the nickel mining industry’s environmental impact and Indonesia’s use of coal for power generation.

The process of making nickel suitable for EV batteries has a high carbon footprint and produces waste that environmentalists fear could be dumped in the ocean.

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Still, global automakers are investing or sourcing from Indonesia due to limited alternatives and booming demand, analysts say.

“There is not enough nickel capacity expansion outside Indonesia. Indonesian nickel production has grown its share from less than 20% to nearly 50% in last four years,” said ANZ’s Soni Kumari.

Even buyers from the developed markets who are more conscious of sustainability credentials will be forced to buy from Indonesia, Kumari said.

“As battery-grade nickel demand continues to grow, battery and auto companies cannot just ignore (criticism) that ‘Indonesian nickel is not green enough’ when most of the future growth is going to come from Indonesia,” she said.

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Plea seeking restoration of ‘X’ adjourned till April 2

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Plea seeking restoration of 'X' adjourned till April 2

 Lahore High Court has adjourned the hearing of miscellaneous application seeking restoration of X (formerly Twitter) till April 21

LHC’s Justice Asim Hafeez heard the petition of Advocate Huzaifa Naeem filed for restoration of social media app X.

During the hearing Justice Asim Hafeez inquired about the petition and the petitioner stated that Pakistan Telecommunication Authority (PTA) has made impossible for public to access the micro-blogging site X.

The court suggested a solution referring to a minister who has suggested to access the platform with VPN.

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The petitioner stressed for a long-term effective solution, replied that “if police say to avoid a certain route as dacoit rule there, it is not a solution.”

The petition requested to court to declare the X outage as illegal and direct opposition to ensure the public access of X. Court has adjourned the petition for hearing till April 2.

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Samsung Galaxy to launch AI features in other devices as well on March 28

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Samsung Galaxy to launch AI features in other devices as well on March 28

Samsung Galaxy AI features will be introduced into other devices as well after on the acclaimed Galaxy S24 series.

Starting March 28, One UI 6.1 will begin rolling out across the Galaxy S23 series, S23 FE, Z Fold5, Z Flip55, and Galaxy Tab S9 Ultra, Tab S9+ and Tab S9 WiFi versions beginning this week.

In the US, Samsung Galaxy S24 users are embracing several innovative features that have revolutionized their smartphone experience.

One standout feature is Circle to Search with Google, which has become immensely popular among users. This feature allows users to search for information quickly by simply circling items on their screens, eliminating the need to switch between apps.

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Live Translate has been a game-changer for users, facilitating seamless communication by providing real-time voice and live caption translations during phone calls. This feature helps users overcome language barriers, ensuring smooth and effective communication.

Samsung’s Generative Edit tool has also garnered significant attention, offering users powerful AI-driven photo editing capabilities. This tool allows users to easily adjust and enhance their favorite pictures by resizing or filling in backgrounds after removing unwanted objects from the frame.

Another highly utilized feature is Chat Assist, integrated into the Samsung Keyboard. This feature provides users with translation, writing style suggestions, and spelling and grammar corrections, enhancing their communication experience across various apps.

These innovative AI features are enhancing the functionality and usability of Samsung Galaxy S24 smartphones, providing users with convenient and efficient ways to interact with their devices and communicate with others. 

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Amazon loses court fight to suspend EU tech rules’ ad clause

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Amazon loses court fight to suspend EU tech rules' ad clause

Amazon (AMZN.O) on Wednesday lost its fight to suspend a requirement regarding its online advertising under EU tech rules after Europe’s top court backed EU regulators, saying EU interests outweigh the U.S. online retailer’s material interests.

Under the Digital Services Act (DSA) which kicked in last year, Amazon was designated as a very large online platform subject to tough rules to tackle illegal and harmful content on its platform.

The company subsequently challenged a DSA requirement to make publicly available a repository containing detailed information on its online advertising and also asked for an interim measure until the court rules on the case.

A lower tribunal in September agreed to its request for an interim measure to suspend the contested obligation, which prompted the European Commission to turn to Europe’s top court.

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The Luxembourg-based Court of Justice of the European Union (CJEU) set aside the suspension order and dismissed Aamzon’s application for an interim measure.

The judge said that Amazon’s argument that the obligation unlawfully limits its fundamental rights to respect for private life and the freedom to conduct a business was not irrelevant.

He also said that without a suspension, it was likely that Amazon would suffer serious and irreparable harm before any judgment annulling the Commission’s decision.

However, he said a suspension could have a detrimental impact on the objectives of the DSA.

“Suspension would lead to a delay, potentially for several years, in the full achievement of the objectives of the Regulation on a Single Market for Digital Services and therefore potentially allow an online environment threatening fundamental rights to persist or develop,” the judge said.

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“The interests defended by the EU legislature prevail, in the present case, over Amazon’s material interests, with the result that the balancing of interests weighs in favour of rejecting the request for suspension.”

Amazon said: “We are disappointed with this decision, and maintain that Amazon doesn’t fit the description of a ‘Very Large Online Platform’ (VLOP) under the DSA, and should not be designated as such.”

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