Downstream Diversification in the Democratic Republic of the Congo and Indonesia

Abstract As global demand for electric vehicles (EVs) grows, the DRC and Indonesia each exert control over a portion of the supply chain—the extraction of critical minerals used in EV batteries. Both countries have enacted policies to capture greater export revenue, the DRC with cobalt, and Indonesia with nickel. Although both maintain a dominance of extraction, only Indonesia has been able to move into the higher value portions of the value chain. Domestic and global factors drive Indonesia forward in its downstreaming ambitions, while the DRC has been unable to move past a range of challenges including weak governance, human rights controversies, and insufficient electricity and technological capacities. To capture maximum value, the DRC must address these domestic constraints and Indonesia will need to assess the opportunity costs of further advancement along the value chain.