Nickel has long been a highly versatile metal, but in recent times it has become a crucial component of the energy transition. According to predictions by the International Energy Agency (IEA), demand for nickel will increase significantly, around 65%, by the end of this decade.
Global nickel reserves and the main producing countries
According to a GlobalData report citing data from the United States Geological Survey, global nickel reserves as of January 2023 were 102.1 million tons (mt). The majority of these reserves are located in Indonesia and Australia, which accounted for 20.6% of the global total each, followed by Brazil (15.7%), Russia (7.3%) and New Caledonia (7%). The Philippines and Canada together hold 6.9% of the global total.
Nickel prices and outlook
According to the GlobalData report, average global nickel prices during the third quarter (Q3) of 2023 were $22,942/mt, 11.6% lower than the same period in 2022. The price decline is attributed to weak demand from China’s battery sector and the increase in nickel supply, especially from Indonesia.
The report predicts that nickel prices will decline by 14% in 2023 and another 10% in 2024, mainly due to expected increased supply from Indonesia and the Philippines, but that growing demand for electric vehicles (EVs) will boost global nickel prices. in 2025.
The importance of nickel in clean energy technologies
Many clean energy technologies experiencing rapid growth, such as EVs, wind turbines, and power grids, require critical minerals such as lithium, cobalt, nickel, copper, and rare earth elements. As clean energy transitions continue to gain momentum, demand for these minerals is increasing rapidly, according to the IEA.
