Infographic: Indonesian projects to boost nickel supply

Indonesia emerged as a key player in the energy transition space after imposing an export ban on unprocessed nickel ore in 2020.

The country attracted critical investments to develop downstream processing capabilities to produce nickel pig iron (NPI), nickel matte and mixed hydroxide precipitate (MHP), with the latter two expected to become mainstream raw materials for battery-grade nickel sulfate production.

With the country expected to make up nearly half of global primary nickel output in the coming years, progress on Indonesian projects is crucial for the battery markets amid growing scrutiny on environmental, social and governance issues -- NPI -- to matte routes, for example, produce six times as much carbon emissions as conventional sulfide ore routes, while the high pressure acid leech route, used to produce MHP, creates large volumes of acidic waste tailings.

However, investments from midstream and downstream players continue to gather momentum -- including announcements by key players like POSCO, BASF and automakers Ford and Volkswagen, as the nickel market is expected to flip back into a deficit in 2027.

Despite the government policies, which are aimed at reducing carbon emissions throughout the battery supply chain, limited growth in sulfide resources and cheaper prices for nickel intermediates could make securing affordable supply a greater priority for most consumers in the coming years.

Read more about it here: Increased supply, tepid EV sales to limit nickel sulfate prices in Q2

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