As we move through 2024, the global nickel industry continues to evolve, influenced by changing demands and market dynamics. In addition, nickel, a crucial metal in various industrial applications, especially in stainless steel and electric vehicle (EV) batteries, is produced predominantly in a few key countries. Here’s an updated look at the top nine nickel-producing nations and the factors driving their production. In this article we will explore Nickel Producing Countries.
1. Indonesia: The Leading Producer -Nickel Producing Countries
Nickel Production: 1.8 Million Metric Tons
Indonesia remains the world’s largest producer of nickel, a position it has held for several years. In 2023, the country produced an impressive 1.8 million metric tons of nickel, a significant increase from 345,000 metric tons in 2017. Indonesia’s rise to dominance in nickel production is largely driven by its extensive nickel reserves, totaling 55 million metric tons.
The nation is actively expanding its role in the electric vehicle (EV) battery market. Its strategic location near China, a global leader in EV manufacturing, is advantageous. By May 2021, Indonesia had inaugurated its first nickel processing plant for EV batteries, and numerous other projects are underway. According to Euronews, Indonesia has secured over $15 billion in deals with global manufacturers for battery materials and EV production in just three years. Notably, Ford announced in December 2023 its investment in the Pomalaa battery nickel plant, expected to start production in 2026.
2. The Philippines: A Resilient Player – Nickel Producing Countries
Nickel Production: 400,000 Metric Tons
The Philippines has long been a significant player in the nickel industry. With over 30 nickel mines, including Rio Tuba operated by Nickel Asia, the country has been a top nickel ore exporter. After a period of decline between 2017 and 2018, when production fell to 340,000 metric tons, the Philippines managed to boost its output to 420,000 metric tons in 2019. However, the production dipped again to 345,000 metric tons in 2022 due to heavy rainfall and flooding impacting mining operations.
In 2023, the Philippines saw a rebound, increasing its nickel production to 400,000 metric tons. The country’s major producers, Nickel Asia and Global Ferronickel, are investing about $2 billion in new nickel-processing plants, which could further enhance production in the coming years, as reported by Bloomberg.
3. New Caledonia: A Challenging Yet Key Producer
Nickel Production: 230,000 Metric Tons
New Caledonia, a French territory located near Australia, heavily relies on nickel mining for its economy. Although, its production dropped from 220,000 metric tons in 2019 to 190,000 metric tons in 2022, the output increased to 230,000 metric tons in 2023. The nickel industry in New Caledonia faces challenges such as rising energy costs and political instability. For instance, Glencore decided to close its Koniambo nickel mine due to high operating costs and a sluggish nickel market.
To support the industry, the French government proposed a 200 million euro bailout package. However, this has faced obstacles, including Trafigura’s decision not to support the bailout for Prony Resources Nouvelle-Caledonie and the Goro mine.
4. Russia: A Declining Force
Nickel Production: 220,000 Metric Tons
Russia, holding the fourth spot among nickel producers, has seen a decline in output in recent years. From 272,000 metric tons in 2018, production fell to 220,000 metric tons in 2023. Norilsk Nickel, a major player in the industry, operates in Siberia and the Kola Peninsula. However, the company experienced a 5% production decline in 2023 and anticipates further reductions in 2024 due to geopolitical tensions and planned capital repairs, as noted by Reuters.
5. Canada: A Recovering Producer
Nickel Production: 180,000 Metric Tons
Canada’s nickel production rebounded to 180,000 metric tons in 2023, matching the levels seen in 2019 after a dip to 143,000 metric tons in 2022. The Sudbury Basin, located in Canada, is a major source of nickel ore. Key players include Vale’s Sudbury operation and Glencore’s Raglan mine and Sudbury Integrated Nickel Operations. Canada Nickel Company also plans to build a $1 billion nickel processing plant in Ontario, which could become North America’s largest.
The US Inflation Reduction Act, which emphasizes sourcing critical minerals from trade-partner countries, could further benefit Canada’s nickel industry.
6. Australia: Navigating Challenges
Nickel Production: 160,000 Metric Tons
Australia saw a modest increase in nickel production, rising from 155,000 metric tons in 2022 to 160,000 metric tons in 2023. Major producers include BHP’s Nickel West division and Glencore’s Murrin Murrin. However, the industry has faced difficulties, with several mines reducing operations or closing due to low prices. The Australian government has recognized nickel as a critical mineral, potentially boosting its future production.
Also Read: Canada Nickel Unveils Game-Changing FEED Stage at Crawford Project with Ausenco
Australia, like Canada, stands to gain from the US Inflation Reduction Act’s focus on sourcing minerals from allied nations.
Conclusion
The landscape of global nickel production is dynamic, with each of the top producers facing unique challenges and opportunities. As demand for nickel continues to grow, especially for use in EV batteries, these countries will consequently play crucial roles in meeting global needs and shaping the future of the nickel market. Additionally, whether you’re an investor or simply interested in the industry, it is therefore essential to stay informed about these key players and their evolving production strategies.
