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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.

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.

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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.

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

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“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.

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.

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.

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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.

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

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“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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AI with reasoning power will be less predictable

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AI with reasoning power will be less predictable

Former OpenAI chief scientist Ilya Sutskever, one of the biggest names in artificial intelligence, had a prediction to make on Friday: reasoning capabilities will make the technology far less predictable.

An idea that his team had explored a decade ago, that scaling up data to “pre-train” AI systems would send them to new heights, was starting to reach its limits, he said. More data and computing power resulted in ChatGPT which OpenAI launched in 2022, to the world’s acclaim.

“But pre-training as we know it will unquestionably end,” Sutskever declared before thousands of attendees at the NeurIPS conference in Vancouver. “While computing is growing,” he said, “the data is not growing, because we have but one internet.”

Sutskever offered some ways to push the frontier despite this conundrum. He said technology itself could generate new data, or AI models could evaluate multiple answers before settling on the best response for a user, to improve accuracy. Other scientists have set sights on real-world data.

But his talk culminated in a prediction for a future of superintelligent machines that he said “obviously” await, a point with which some disagree. Sutskever this year co-founded Safe Superintelligence Inc in the aftermath of his role in Sam Altman’s short-lived ouster from OpenAI, which he said within days he regretted.

Long-in-the-works AI agents, he said, will come to fruition in that future age, have a deeper understanding, and be self-aware. He said AI will reason through problems like humans can.

From a Nobel Prize winner’s prediction to Google’s new generation quantum chip,

There’s a catch.

“The more it reasons, the more unpredictable it becomes,” he said.

Reasoning through millions of options could make any outcome non-obvious. By way of example, AlphaGo, a system built by Alphabet’s DeepMind, surprised experts of the highly complex board game with its inscrutable 37th move, on a path to defeating Lee Sedol in a match in 2016.

Sutskever said similarly, “The chess AIs, the really good ones, are unpredictable to the best human chess players.”

AI as we know it, he said, will be “radically different.”

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Data portal to help Pakistan in key sectors

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Data portal to help Pakistan in key sectors

Federal Minister for Planning, Development and Special Initiatives Ahsan Iqbal says data is more valuable than oil in today’s world.

“Data is more valuable than oil as its role in decision-making can significantly enhance productivity and drive economic and social progress,” the minister said at a symposium on Thursday.

In his keynote address at the inaugural ceremony of the two-day Data for Development (D4D) Symposium, an initiative by UNFPA, in partnership with Sustainable Development Policy Institute (SDPI) in the first year of initiative with the support of the Government of the Netherlands, Iqbal applauded the initiative and remarked that data had evolved beyond a mere tool and become a cornerstone for development and transformative change.

He highlighted that despite its potential, Pakistan faces challenges in ensuring widespread internet access, particularly in the fields of education, health, and governance.

The minister referenced a United Nations report that revealed 68pc of the Sustainable Development Goals (SDGs) rely on high-quality data. However, developing countries like Pakistan continue to struggle with data management and infrastructure, he added.

He also shared examples of how data had been effectively utilised in Pakistan, such as using satellite data to monitor glacial melt in Gilgit-Baltistan and implementing social protection initiatives like the Benazir Income Support Program (BISP) that successfully disbursed cash relief to over 2.7 million families based on data during the 2022 floods.

“We are embedding AI ethics to ensure transparency and fairness in algorithmic models,” he explained, highlighting the government’s efforts to design systems that prioritise equity and inclusivity.

Dr Luay Shabaneh, UNFPA Country Representative, Pakistan said data collection must translate into actionable knowledge, particularly in sectors like education, nutrition, and maternal health.

He called for increased openness in data collection and sharing, and greater capacity for transforming raw data into quality insights.

Ambassador Shafqat Kakakhel, Chairman SDPI Board of Governors who opened the symposium, commended the D4D initiative for strengthening government agencies’ capacities at both federal and provincial levels.

The project aims to foster a culture of evidence-based decision-making, enhance the national statistical system, and bolster data collection processes across public entities.

Ahsan Iqbal, along with others, launched Pakistan’s first D4D Portal, designed to centralise critical data on demographics, health, gender, education, and beyond.

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Canada proposed 15bn dollars incentive to boost AI green data centre investment

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Canada proposed 15bn dollars incentive to boost AI green data centre investment

Canada’s federal government has considered making up to $15 billion available as an incentive to encourage major domestic pension funds to invest in AI data centres powered by green energy, the Globe and Mail reported on Thursday.

Ottawa floated the proposal in private consultation with pension funds as part of a suite of potential measures in consideration to be included in its fall economic statement, the report added citing sources with knowledge of the discussions.

Artificial intelligence tools such as OpenAI’s ChatGPT depend on chips and energy. But a $1 trillion rush to build data centres faces constraints on planning and power globally.

Last month, utilities, power regulators and researchers in a half-dozen countries told Reuters the surprising growth in power demand driven by the rise of AI and cloud computing is being met in the near-term by fossil fuels like natural gas, and even coal, because the pace of clean-energy deployments is moving too slowly to keep up.

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