US companies REalloys and U.S. Critical Materials have signed a collaboration to build a domestic rare earth supply chain, including securing supply from the Sheep Creek project, which is rich in dysprosium and terbium—critical minerals for defense and high-tech industries. This move reflects the US strategy to reduce dependence on China while strengthening strategic industrial independence through the development of domestic rare earth production and processing capacity.
—Reuters, April 1, 2026
China’s Investment Drives the Nickel Industry but Triggers Environmental Risks
China’s investment of more than US$65 billion has accelerated Indonesia’s nickel downstreaming, strengthening the EV battery supply chain, and boosting exports, employment, and Indonesia’s position as a global nickel producer.
However, this growth also creates environmental and social challenges, including dependence on coal-fired power plants to supply energy for nickel smelters through captive power schemes, industrial waste, and community rights issues. This calls for a transition toward more sustainable and low-carbon industrial practices.
—Media Nikel Indonesia, April 1, 2026
AI Surge Drives Demand for Energy, Critical Minerals, and Battery Supply Chain Transformation
Rapid growth in AI and data centers is significantly increasing electricity demand, with global consumption projected to surge to 1,000 TWh by 2030. This positions batteries not only as backup systems but as core infrastructure for maintaining power stability, load management, and renewable energy integration.
At the same time, rising battery demand is strengthening the need for critical minerals such as lithium, nickel, and cobalt. To reduce import dependence, the development of battery recycling and refining is becoming essential to building more resilient domestic supply chains while supporting the competitiveness of the AI industry and long-term energy security.
—The Fast Company Impact Council, February 4, 2026
Impact of the Iran War: China Strengthens Coal Reserves and Accelerates Nuclear Energy
Guangdong province, China’s major industrial hub, has begun tightening its energy strategy by increasing coal reserves to 20–25 days of consumption, limiting gas usage, and accelerating the operation and construction of nuclear power plants. This reflects rising pressure from global energy supply disruptions, particularly LNG, due to the conflict in the Middle East.
Although China’s energy system remains relatively resilient due to diversification and strong domestic coal production, rising coal prices and cost pressures are beginning to take effect. At the same time, slowing export-oriented manufacturing and concerns over fuel costs in the transportation sector indicate that the impact of the conflict is starting to spread into the domestic economy, even though macroeconomic policy remains relatively stable.
—Bloomberg, April 2, 2026
US AI Ambitions Face Setbacks: Dependence on Chinese Electrical Components Becomes a Bottleneck
The rapid expansion of AI data centers in the United States is driving massive electricity demand but is hindered by limited supply of key electrical components such as transformers, switchgear, and batteries. Insufficient domestic manufacturing capacity means the US still relies heavily on imports—particularly from China—resulting in nearly half of data center projects being at risk of delay or cancellation.
Amid geopolitical rivalry and protectionist policies, this creates a strategic dilemma: the US leads in AI chips and software but is weak in supporting energy infrastructure. Without accelerating manufacturing capacity and stabilizing supply chains, its ambition for global AI dominance risks being constrained by bottlenecks in electrical infrastructure.
—Bloomberg Technoz, April 2, 2026
US Expands Restrictions on Chinese Technology, FCC Proposes Ban on Imports of Legacy Devices
The Federal Communications Commission (FCC) has proposed extending the ban on imports of Chinese telecommunications and surveillance equipment from companies such as Huawei, ZTE, Hikvision, and Dahua, including products that were previously approved before the 2022 policy. This move is part of broader efforts to tighten national security and reduce risks in the US communications sector.
This policy complements previous restrictions, including bans on new devices and other technology products such as drones and routers. If enacted, the regulation could take effect quickly to prevent a surge in imports, although devices already in use would still be allowed. This underscores the escalation of US policy in limiting China’s technological dominance.
—Reuters, April 3, 2026
Manufacturing PMI Weakens, Risk of Stagnation Increases
Indonesia’s manufacturing performance has slowed, with PMI falling to 50.1 in March 2026, nearing the stagnation zone due to energy price pressures and global uncertainty. This condition increases the risk of declining utilization and delayed industrial expansion.
To maintain momentum, the government needs to reduce production costs (energy and logistics), maintain financing liquidity, stimulate domestic demand, and ensure policy certainty to prevent the slowdown from turning into contraction.
—Kontan, April 1, 2026