Where Is Nickel Mined: The Top 5 Nickel-Producing Nations

In 2014, the nickel industry faced a historic collapse, nothing like it had ever witnessed. Prices cratered, mines shut down, and companies went under. Years later, nickel has become one of the most sought-after industrial metals. Why? Electric vehicles.

A mining operator in Sudbury or Tesla Motors – nickel has been resuscitated in the last couple of years. The industrial metal will continue to experience a resurgence amid advancing demand across the globe. From Canada to Australia, many countries are set to benefit from this newfound love for nickel.

It turns out that nickel, as well as copper, are crucial for the development of the new-generation of vehicles. All over the world, businesses and nations are clamoring for nickel supplies, whether they are from Canada or the Philippines. This has allowed nickel prices to recover from their 2020 lows and surge to near all-time highs.

Whether you are a retail trader or a company demanding more nickel, it is important to equate yourself with the fundamentals of the nickel sector. This involves knowing the top mining markets. For now, these places have ample stocks of nickel that will last for a few more years. But as foreign demand blossoms, will these inventories be enough to match that level of demand?

So, who is set to benefit from higher demand and surging prices? We have compiled a list of the top five nations where nickel is commonly mined:

1. Indonesia

The Southeast Asian nation produced approximately 800,000 metric tons of nickel per year, making it the biggest producer in the world. Nickel could also soon become Indonesia’s main export, surpassing that of palm oil.

With China being the top consumer of nickel, Indonesia maintains one of the largest markets as a trading partner. And, with nickel becoming an integral component for electric vehicle manufacturing, Indonesia can dominate the market.

2. Philippines

Although nickel output has slumped in recent years, the Philippines is still one of the top nations where nickel is commonly mined. In 2019, the nation produced about 420,000 metric tons of nickel, up from 340,000 metric tons in 2018. Like Indonesia, China is a close neighbour and a major importer of its nickel.

3. Russia

Russia has consistently produced around 270,000 metric tons for years, making it the third-largest nickel miner on the planet. With foreign demand for nickel forecast to balloon, Moscow could make a push to both produce and export more of the industrial metal.

4. Australia

Perhaps understanding just how critical nickel will become in the years to come, Australian businesses have increased production efforts going back to 2016, even as the nation was still reeling from the crash in nickel prices. Last year, Australia reported output levels of 180,000 metric tons, up from 170,000 metric tons in the previous year.

5. Canada

Canada is on par with Australia in terms of the amount of nickel that is produced. In 2019, Canada produced the same amount of nickel, with 180,000. Ottawa is going all in on the electric vehicle front, so domestic nickel production will be crucial for the federal government to realise its dreams.

Nickel Consumption in the United States

The United States remains one of the biggest customers of nickel, consuming roughly 188,000 metric tons per year. Recycled nickel from scrap is also big in the U.S., totaling 122,000 tons, or $1.27 billion. You may also discover plenty of United States nickel projects and companies that are currently active.

China to Import More Nickel

China has been on a buying spree since the fallout of the COVID-19 public health crisis. Beijing has been buying everything, from soybeans to wheat to copper to nickel. And the nation plans to buy even more copper in the coming months. Due to Indonesia curbing exports with new restrictions, China is searching everywhere for nickel inventories. Whoever has nickel, China wants it.

How Much Nickel Does the World Consume?

Now we know how much love the world’s largest economy has for nickel, but what about the rest of the planet? Since 2009, consumption has been rising every year, eventually topping 2,319 million tons.

Copper Consumption in 2020

The year might be winding down, but experts are beginning to crunch the numbers from the last year. So far, it is projected that the world consumed 2.38 million metric tons of nickel in 2020.

Will it grow in 2021? With the global economic recovery on the way, thanks to astronomical fiscal and monetary stimulus and three coronavirus vaccines, nickel demand will likely balloon.

How Much is Nickel Anyway?

In 2020, the average price for nickel was $16,373 per metric ton, up from the low of around $11,000 at the height of the coronavirus-induced market meltdown in the spring. It is forecast to remain roughly the same price in 2025. But will supply keep up with the demand, particularly as the new-generation of automobiles become more prevalent worldwide.

“We expect nickel prices to remain strong in 2020, and only start receding when China’s demand begins easing sometime next year,” said Commonwealth Bank of Australia analyst Vivek Dhar in a report.