From resources to manufacturing: A new model of Asia-Pacific growth

The supply chain behind an electric vehicle sold in Southeast Asia can stretch across continents: nickel from Indonesia, lithium from Chile, investment and manufacturing expertise from across Asia and a growing regional market bringing these elements together. It is a reminder that the economic value of a product increasingly lies not in any single country's resources or factories, but in the connections between them.

Across the Asia-Pacific, economies are drawing on their respective strengths to build more integrated industrial networks, moving beyond the simple exchange of raw materials and finished goods. From mineral processing to vehicle manufacturing and battery supply, these links are creating opportunities for investment, technology transfer and industrial development across the region.

Indonesia offers a striking example of how a resource-rich economy can seek a greater role in global industry. As the world's leading nickel producer, Indonesia saw its mined nickel output increase by an estimated 13% in 2025, according to the US Geological Survey. The country has attracted investment in domestic smelting and processing, seeking to turn its mineral resources into higher-value products rather than relying on raw ore exports.

Nickel is widely used in stainless steel and is also an important material in some electric vehicle batteries. By expanding its processing capacity, Indonesia is positioning itself to participate in a broader industrial chain that connects mineral extraction with battery production and vehicle manufacturing. Its resources can complement the technological expertise, investment and manufacturing capabilities available elsewhere in Asia.

That cooperation is unfolding alongside the rapid expansion of Southeast Asia's electric vehicle market. Sales of electric cars in the region more than doubled in 2025 to exceed half a million, with such vehicles accounting for nearly one in five new cars sold, according to the International Energy Agency (IEA). Vietnam, Indonesia and Thailand were among the markets leading the growth.

The expanding market is attracting automakers and suppliers to the region, creating opportunities to develop local production and connect manufacturers with regional supply networks. Chinese carmakers have become an increasingly important part of this development. More than half of the electric cars sold in Southeast Asia in 2025 were Chinese brands, while manufacturers have also been expanding production facilities in the region, the IEA said.

This creates a broader economic relationship: Indonesia's mineral resources can support battery-related industries, while Southeast Asia's growing consumer markets and manufacturing base provide opportunities for investment and production. The benefits can extend beyond vehicle makers to suppliers, workers and businesses involved in components and related services.

Further across the Pacific, Chile is seeking to turn its mineral wealth into a stronger domestic industry. A major producer of copper and lithium, the South American economy supplies materials essential to electrification, from power grids and electric motors to rechargeable batteries. Asia received 95% of Chile's lithium exports in 2025, with China accounting for 67%, according to the country's Subsecretariat of International Economic Relations.

But Chile's ambition extends beyond supplying overseas manufacturers. Its National Lithium Strategy aims to attract capital and technology, expand production and promote the development of downstream industries. A partnership between state-owned copper producer Codelco and lithium company SQM is a key part of that effort, combining public-sector participation with private-sector expertise to develop lithium resources.

Canada is also working to build a more complete domestic supply chain, connecting its mineral resources with processing and advanced manufacturing. As of March 2025, the country had 31 critical mineral processing facilities and 171 advanced projects, including 28 processing projects, according to the Canadian government. Its NextStar Energy battery plant in Ontario, backed by an investment of 5 billion Canadian dollars ($3.54 billion), began producing electric vehicle battery modules in 2024 and battery cells for energy storage systems in November 2025. The project reflects a broader effort to turn Canada's mineral resources into a foundation for advanced manufacturing.

From Indonesia's nickel processing and Southeast Asia's expanding vehicle industry to Chile's mineral exports, these connections show how economies can turn their individual advantages into shared opportunities. When resources, investment, technology and markets reinforce one another, cooperation can create value across borders and give more economies a stake in the growth of the Asia-Pacific.