INTERVIEW: Nickel demand to stay strong on batteries, defense needs

Strong nickel demand is expected to continue, supported by stainless steel, batteries, data-center storage and defense, Veronique Steukers, president of the Nickel Institute, said in an interview with Platts, part of S&P Global Energy, on Oct. 21.

The latest outlook from the International Nickel Study Group indicates year-over-year growth in nickel demand, Steukers said. Production is expected to remain level this year before increasing by 5% next year, according to the study group's projections.

Nickel will continue to be used in stainless steel, Steukers said. In addition, "nickel remains a very important product in batteries."

Demand for nickel-containing battery chemistries has increased as the overall battery market has expanded, although growth has been softer, she said.

"Depending on the region you're looking at, it will remain a very important compound, not just for EVs, but also storage for data centers."

Supply chains focus on resilience

Indonesia remains an important part of the nickel supply chain, while China is the biggest user of the metal, Steukers said.

Geopolitical developments and changing trade conditions have increased the focus on supply-chain resilience. Regions and value chains are looking more closely at diversification and domestic processing to avoid future supply risks.

"Countries are really looking for a secure resilient supply of nickel," Steukers said.

Nickel has been identified as a critical raw material by several countries. Its importance extends beyond the energy transition to transport and defense, which Steukers described as a significant nickel application.

As nickel becomes more strategically important, expectations around responsible production are also increasing. The Nickel Institute provides practical guidance to regulators and the value chain on identifying responsible nickel producers, she said.

Recycling to supplement primary supply

Battery recycling is expected to become a more important source of nickel when larger volumes of batteries return for processing.

Nickel from batteries will return to the market as nickel, she said. However, nickel-containing materials have long service lives. Electric vehicle batteries are lasting longer than expected, and some may be used in second-life applications before being recycled, Steukers said.

"Once those batteries will be coming back, then that recycling definitely will be an important part as well of the supply for nickel," she said.

Recycling is expected to develop alongside primary nickel production. About one-third of stainless steel production comes from scrap, although the proportion varies significantly by region. Steukers estimated that scrap accounts for about 80% of stainless steel production in Europe, compared with about 20% in China.

"Nickel can be recycled over and over and over again, and it's a very valuable material," Steukers said.

Sustainability standards need consistency

Battery recycling could also affect nickel's carbon footprint. Sustainability is increasingly becoming a condition for market access, Steukers said. The nickel value chain faces growing expectations around carbon emissions and environmental protection.

The Nickel Institute has developed sustainability guidance and methodologies for calculating carbon footprints, including Scope 3 emissions. Greater consistency in standards and methodologies would help regulators and value-chain participants assess environmental impacts and compare data.

A single carbon benchmark for nickel remains difficult as the industry uses different ores, production processes and end products, including nickel metal, nickel sulfate, ferronickel and nickel pig iron.

"In the case of nickel, it's really case by case," Steukers said.

The Nickel Mark is gaining more traction in Indonesia. Steukers said the Nickel Mark is an accessible standard that allows companies to complete audits and evaluations within a shorter timeframe, identify hotspots and begin making improvements.

"The market wants to have answers now," she said. "They want to know that companies know now what their hotspots are."

Platts assessed the nickel plating-grade premium at $400-$500/mt in-warehouse Rotterdam on Oct. 23. The uncut cathode premium was assessed at $250-$300/mt, while the briquette premium was assessed at $350-$450/mt, on the same basis.

Platts assessed black mass cobalt payables at 80% ex-works Europe on Oct. 27. Nickel payables were also assessed at 80%. Platts assessed lithium payables at zero on Oct. 8, unchanged since its April 2023 launch.