Indonesia and Philippines are moving to strengthen regional industrial cooperation through a proposed nickel supply chain corridor aimed at boosting ASEAN integration and expanding participation in the global electric vehicle and battery market.

The proposed Indonesia-Philippines Nickel Corridor was discussed during a high-level business roundtable held in Cebu alongside the 48th ASEAN Summit, where government officials and business leaders explored cross-border industrial partnerships tied to manufacturing, critical minerals, and energy transition industries.

Business groups said the initiative could shift regional cooperation away from raw commodity exports toward integrated industrial value chains involving processing, manufacturing, and technology development.

Bernardino Moningka Vega, deputy chair for foreign relations of the Indonesian Chamber of Commerce and Industry, said the discussions produced a broader roadmap for regional economic cooperation.

“In line with this year’s ASEAN-Philippines theme, ‘Navigating Our Future, Together,’ the Kadin Indonesia-PCCI high-level forum has laid out a roadmap not only for bilateral cooperation but also for making the ASEAN region better prepared to face current geoeconomic realities,” Vega said.

A key component of the proposed partnership involves cooperation between the Indonesian Nickel Miners Association and the Philippine Nickel Industry Association, covering data sharing, regulatory coordination, investment promotion, ESG standards, and workforce development.

The initiative comes as global demand for nickel rises due to expanding electric vehicle and battery manufacturing industries.

Industry estimates cited during the forum showed Indonesia is projected to produce around 2.6 million metric tons of nickel, while the Philippines is expected to produce about 270,000 metric tons. Combined, both countries account for roughly 73.6 percent of global nickel output based on 2025 US Geological Survey data.

Indonesia’s nickel reserves are estimated at 62 million metric tons, while the Philippines holds around 4.8 million metric tons.

Officials said Indonesia stands to further strengthen its downstream nickel processing industry, while the Philippines could attract more investments tied to higher-value processing and manufacturing activities.

The roundtable also produced preliminary agreements involving aviation and agricultural technology cooperation, including a reported $80 million initiative involving Garuda Maintenance Facility and JAR Aviation Services.

Participants also announced plans for a nickel processing facility in the Philippines involving Agro Investama Group, RBN Solutions Inc., and Ploutus Inc.. The facility is expected to support electric vehicle and battery supply chains and include a minimum monthly nickel supply of 200,000 metric tons beginning June 2026.

Ferdinand Ferrer, president of the Philippine Chamber of Commerce and Industry, said the initiative reflects broader efforts to deepen ASEAN industrial integration.

“ASEAN is strongest when it acts as one unit. And at the heart of this unity is the very strong bilateral relationship between Indonesia and the Philippines, with a combined population of nearly 400 million,” Ferrer said.