Indonesia’s dreams of becoming a hub for electric-vehicle manufacturing are stuck under a cloud of CO2. Jakarta banned nickel exports several years ago in a bid to transform its natural mineral resources from an export commodity into a foundation for domestic production of electric-vehicle batteries and cars. The WSJ’s Jon Emont reports that explosive growth of coal-powered smelters followed, increasing pollution in the country while doing little to boost domestic EV manufacturing. An environmental group says a single nickel-focused industrial park that is ramping up production on eastern Indonesia’s Maluku islands will burn more coal than Spain or Brazil. Although nickel production is increasing, automakers aren’t rushing to ramp up electric-vehicle manufacturing in the country because EV demand there is so weak. The environmental challenges posed by nickel smelting is pushing some in the EV industry to consider less powerful lithium-iron-phosphate alternatives.

• Lithium and nickel prices are plunging because of a sharp slowdown in demand in China. (Nikkei Asia)
• A mining startup backed by Bill Gates and Jeff Bezos says it has discovered Zambia’s largest copper deposit in a century. (Financial Times)

Domestic manufacturers of medical masks and gloves are seeking government protection. The U.S. spent about $1.5 billion helping fund factories to produce items such as rubber gloves and N95 respirators during the Covid pandemic when overseas supply dried up. The WSJ’s Bob Tita writes many of those companies are struggling or going out of business now that consumer demand has waned and hospitals are returning to overseas suppliers. Some hospitals say they are obligated to return to foreign sources because of longstanding, multiyear contracts. Domestic manufacturers are also struggling to compete on price with Asian suppliers. U.S. companies say the government should preserve domestic production as a hedge against future supply shortages by imposing price subsidies or requiring federal purchasing incentives for hospitals. The Biden administration has asked Congress for $400 million to maintain pandemic preparedness programs, including expanding domestic production of protection gear.

Federal Reserve Chair Jerome Powell said central bank officials don’t have to rush a decision on cutting interest rates. (WSJ)

Home buyers are back on the market. (WSJ)

Germany’s trade surplus widened more than expected in December. (WSJ)

U.S. consumer products companies are banking on a rebound in consumer demand in China. (WSJ)

Estée Lauder is cutting about 3,100 workers, or 5% of its workforce. (WSJ)

Boeing is reworking 50 undelivered 737 MAX jets after a supplier’s employee found misdrilled holes on some fuselages. (WSJ)

A surge in aviation-safety incidents in Russia indicates how Western sanctions are hindering the country’s ability to source aircraft parts. (WSJ)

The U.K. Treasury’s independent forecaster will review bringing back tax-free shopping for tourists after companies lost billions in sales. (The Guardian)

Germany’s Gefo Shipping Group is ordering 10 chemical tankers from a shipyard in China. (Shipping Watch)

BlackRock revealed it has a 5% stake in Rhode Island-based dry bulk owner and operator Pangaea Logistics Solutions. (TradeWinds)

Austrian international logistics provider Gebrüder Weiss is acquiring Utah-based freight forwarder Cargo-Link. (Journal of Commerce)

Truck maker Paccar is recalling over 47,000 Peterbilt and Kenworth trucks. (Trucking Dive)

Cannabis farmers in New York may have to throw away 250,000 pounds of product because of a shortage of legal retail stores in the state. (MarketWatch)

Paul Page is editor of WSJ Logistics Report. Reach him at paul.page@wsj.com.

Follow the WSJ Logistics Report team: @PaulPage, @bylizyoung and @pdberger. Follow the WSJ Logistics Report on X at @WSJLogistics.