Global Nickel Supply

Global Nickel Supply

Global Nickel Supply

China’s MMG Ltd acquired Anglo American’s Brazilian nickel business, strengthening its control over the global nickel supply amid Western producers exiting due to low prices.

About Nickel

  • Nickel is a Silvery-white, very hard, and highly corrosion-resistant metal.
  • It is Ductile and malleable, allowing it to be shaped into thin wires and sheets without breaking.
  • Good thermal and electrical conductivity, making it ideal for industrial applications.
  • Never found in pure form naturally, extracted from sulfide and laterite ores.
  • Found in association with copper, uranium, and other metals.

Major Uses of Nickel

Nickel

  • Stainless Steel Production (65% of global use): Enhances strength, corrosion resistance, and durability.
  • Battery Manufacturing (EVs): Used in lithium-ion and nickel-metal hydride (NiMH) batteries.
  • Aerospace and  Defense: Found in jet engines, gas turbines, and military applications.
  • Electronics and Magnets: Used in mobile phones, power tools, and hard drives.
  • Plating and Coatings: Protects surfaces from corrosion and wear in automotive and maritime industries.

About Nickel Pollution

  • Sources: Nickel pollution arises from industrial activities, fuel combustion, and municipal or industrial waste, leading to environmental contamination and human exposure.
  • Nickel-Related Health Risks: Prolonged exposure to nickel can cause allergies, cardiovascular and kidney diseases, lung fibrosis, and even lung and nasal cancer, posing significant health hazards.

Global Nickel Distribution

  • Largest Reserves: Australia, Indonesia, Brazil, Russia, and Cuba.
  • Leading Producers: Indonesia , Philippines, and Russia.
    • In 2022, Indonesia and the Philippines accounted for 58.2% of global nickel output
  • Largest Consumer: China is the largest consumer of nickel globally utilizing 50.4% of global production.

Chinese Dominance in Nickel

  • Control Over Refining: Chinese companies dominate 75% of Indonesia’s refining capacity, the world’s largest nickel supplier.
  • Strategic Acquisitions: MMG’s expansion into Brazil’s nickel market enhances China’s influence in global nickel production.
  • Market Influence: China’s investments have driven a global supply glut and price collapse, forcing Western producers to sell assets.

Nickel Distribution in India

  • Key Deposits: Sukinda Valley (Odisha) with nickeliferous limonite and Singhbhum (Jharkhand).
  • Leading Producing States: Odisha (92%), Jharkhand, Karnataka, Kerala, and Rajasthan.

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