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1) The US and Indonesia are set to discuss the advancement of a potential minerals partnership, particularly focusing on the trade of nickel - a crucial metal for electric vehicle (EV) batteries. The talks, scheduled during Indonesian President Joko Widodo's visit to the White House on Monday, aim to explore steps toward formal negotiations for the partnership. Indonesia, possessing the world's largest nickel ore reserves, has proposed discussions for a trade deal covering critical minerals, with a focus on EV supply chain development. While Indonesia seeks inclusion in the US Inflation Reduction Act (IRA), concerns over environmental, social, and governance standards persist within the Biden administration. Due to this, the administration plans consultations with US lawmakers and labor groups in the coming weeks. Under US law guidelines, a portion of critical minerals in EV batteries mush be produced or assembled in North America or a free trade partner for eligible tax credits with Indonesia currently lacking a free trade agreement with the United States. The global nickel industry's estimated market value in 2022 is $33.5 billion, although it faces oversupply. The US, with its only nickel mine set to close soon and lacking a nickel smelter, aims to secure a domestic supply for EV manufacturing. The Biden administration granted funds for a nickel processing plant in North Dakota, emphasizing domestic projects, but faces opposition, particularly from Indigenous groups, highlighting the challenges in navigating both international and domestic aspects od critical mineral supply chains.
2) Peru's government has unveiled a comprehensive package of over two dozen measures aimed at revitalizing the economy and attracting investments to counter the impact of a recession. The measures, announced by the Economy Minister Alex Contreras, specifically target the critical mining sector, focusing on increasing investments and boosting mining production. Peru, the world's second largest copper producer, entered a recession due to factors such as the El Nino weather phenomenon, reduced private investment, and lingering effects from past social conflicts. Contreras expressed optimism about the reconver plan, anticipating a significant increase in funding for both public and private projects. He expects the funding to surge up to $8 billion in 2024, a substantial rise from the $2.3 billion in the current year.