Nickel: Properties and Industrial Role
Nickel is a silvery white, hard and ductile metal with good mechanical strength and plasticity, high polishability and strong resistance to a wide range of acids and alkalis, although it dissolves readily in dilute nitric acid and in aqua regia. Those properties explain its unusual breadth of use: it is a base for magnetic alloys, shape memory alloys and special steels, a coating metal in electroplating where it prevents rust, and a key constituent of hydrogenation catalysts. Because most global nickel output is consumed by stainless steel, the metal sits at the centre of the alloy supply chain.
Global Nickel Reserves by Country
Reserves data published by the United States Geological Survey show that world nickel ore reserves passed the 100 million tonne mark in 2022, and that they are concentrated in a small number of countries.
| Country | Reserves (million tonnes) | Share of world total |
|---|---|---|
| Indonesia | 21 | 20.6 % |
| Australia | 21 | 20.6 % |
| Brazil | 16 | 15.7 % |
| Kazakhstan | 7.5 | 7.4 % |
| Philippines | 4.8 | 4.7 % |
Indonesia and Australia together account for more than 40 % of identified reserves, and laterite deposits in Indonesia and the Philippines have become the main marginal source of supply for the stainless steel and battery industries.
Supply and Demand in 2024 and 2025
According to the International Nickel Study Group, global nickel demand is expected to reach 3.51 million tonnes in 2025, up from 3.35 million tonnes in 2024. Growth comes mainly from the expanding battery sector, above all from battery-grade nickel for new energy vehicles, supported by steady demand from stainless steel, alloy steel and electroplating. On the supply side, global nickel production is forecast to reach 3.65 million tonnes in 2025 as new mines are developed, existing capacity is upgraded and processing technology improves.
| Indicator | Value |
|---|---|
| Global nickel demand, 2024 | 3.35 million tonnes |
| Global nickel demand, forecast 2025 | 3.51 million tonnes |
| Global nickel production, forecast 2025 | 3.65 million tonnes |
| Refined nickel production, January to June 2024 | 1.683 million tonnes |
| Refined nickel consumption, January to June 2024 | 1.6409 million tonnes |
| Refined nickel surplus, January to June 2024 | 42,100 tonnes |
| Nickel ore output, January to June 2024 | 1.72 million tonnes |
Monthly figures from the World Bureau of Metal Statistics for June 2024 show how thin the balance can look month by month: refined nickel production of 281,800 tonnes against consumption of 280,300 tonnes, a surplus of 1,500 tonnes, with nickel ore output of 287,400 tonnes in the same month. The cumulative half-year position is a clearer indication of the overall surplus than any single month.
China's Nickel Supply Structure
China is the world's largest nickel consumer. Its resource supply is composed of primary nickel, which accounts for about 72.9 % of the total, and the recycled nickel market, which contributes about 27.1 %. Refined nickel production in China has grown markedly in recent years as newly commissioned capacity has been released and earlier projects have ramped up to full output. Indonesia's growing production has a direct influence on the Chinese position, because much of the intermediate feed for Chinese stainless and battery-grade plants originates there, and permitting delays can leave annual supply below expectation even when the long-term potential remains large.
What Oversupply Means for Producers and Buyers
A surplus such as the gap between 3.65 million tonnes of forecast supply and 3.51 million tonnes of forecast demand acts progressively on the market. The first effect is on producer margins, because abundant metal tends to soften prices and leaves higher-cost operations struggling to cover cash costs. The second is strategic adjustment: producers look for new outlets in emerging applications, extend their export reach into regions with stronger demand and diversify the product mix to absorb excess capacity. For buyers, an oversupplied market generally means better availability and keener pricing, but also wider variation in traceability and certification between suppliers, which makes supplier qualification, heat number control and incoming inspection more important rather than less.
FAQ
Q: Where are the world's largest nickel reserves?
Indonesia and Australia each hold roughly 21 million tonnes, about 20.6 % of the world total, followed by Brazil with 16 million tonnes, Kazakhstan with 7.5 million tonnes and the Philippines with 4.8 million tonnes.
Q: How much nickel will the world produce and consume in 2025?
Global production is forecast at 3.65 million tonnes against demand of 3.51 million tonnes, which implies a market surplus of about 140,000 tonnes.
Q: What is driving nickel demand growth?
Battery-grade nickel for new energy vehicles is the fastest-growing segment, supported by steady consumption in stainless steel, alloy steel production and electroplating.
Q: How much of China's nickel supply is recycled?
Recycled nickel accounts for about 27.1 % of the market, with primary nickel supply making up the remaining 72.9 %.
Q: What does a nickel surplus mean for alloy buyers?
Availability and pricing usually improve, but the spread between suppliers widens, so certificates of analysis and heat number traceability become the main tools for controlling risk.
