Indonesia’s government confirmed a new royalty structure for nickel ore exports, raising rates to between 14% and 19% depending on the international price benchmark, up from a flat 10% previously.

The policy is designed to funnel more raw ore into the country’s rapidly expanded domestic smelting industry, which now accounts for more than half of global nickel intermediate production.

Philippine ore exporters, the next-largest global supplier, said they expect to pick up some incremental demand from Chinese buyers seeking to diversify feedstock sources.

Battery makers and stainless steel producers are watching closely, as the levy could add modest cost pressure to nickel pig iron and matte prices already up 8% this quarter.