Global Nickel Market - 2023-2030

Global Nickel Market - 2023-2030

Global Nickel Market reached US$ 33.6 billion in 2022 and is expected to reach US$ 47.2 billion by 2030, growing with a CAGR of 5.5% during the forecast period 2023-2030. The growing demand for nickel in batteries aids in the delivery of higher energy density and more storage capacity at a cheaper cost, which is the primary driver of market expansion. The rising adoption of electric vehicles, as well as the developing use of nickel in the medical field, are likely to present opportunities in the future.

Stainless steel application is anticipated to account for around 35.4% of the global nickel market during the forecast period. Owing to its corrosion resistance, durability and widespread availability, stainless steel is utilized in a variety of industries, including food and beverage, construction and aerospace, among others, driving market expansion.

Market Dynamics
Growing Demand of Nickel in Stainless Steel Products
Stainless steel is a major end-use of nickel, accounting for a sizable percentage of global nickel market. The rise in stainless steel manufacturing, driven by economic growth, urbanization and infrastructural development, has a direct impact on nickel demand. Nickel-containing steel alloys have become increasingly popular. Nickel-containing grades account for a significant portion of stainless steel manufacture.

Nickel concentration of 11% in type 316 and 8% in type 304 make the steel easily weldable, ductile and robust. Owing to its superior features such as corrosion resistance, plentiful availability and durability, stainless steel items are in high demand. Stainless steel is widely used in major industries such as aerospace, chemical, oil and gas, construction, automotive and others. Nickel is very essential in the manufacturing of steel and has a significant alloy share in its production.

Growing Electric Vehicles and Batteries Ecosystem
The increased production and sales of electric vehicles will drive up demand for nickel, which is largely utilized as a component in lithium-ion batteries. The increase of electric vehicle production has increased nickel demand as automobile manufacturers speed up battery production. Epsilon Advanced Materials, an Indian materials company, announced a US$ 650 million investment in June 2023 to develop a new battery materials production in U.S.

Nickel's high energy storage capacity contributes to longer EV ranges, making it an important material for improving EV performance. Ongoing battery technology research aims to improve the energy density and lower the cost of lithium-ion batteries. To enhance the battery performance, nickel-rich cathodes such as NMC (nickel-manganese-cobalt) and NCA (nickel-cobalt-aluminum) chemistries are being employed.

Environmental Concerns and Dependance on Stainless Steel Industry
Nickel ore mining and processing can have negative environmental consequences such as habitat damage, water pollution and greenhouse gas emissions. Increasing environmental constraints and concerns about sustainability increases the compliance costs and restrict access to certain nickel sources. The stainless steel industry is a major consumer of nickel, accounting for a sizable share of nickel consumption.

Dependance of nickel demand on a single industry can impose the nickel market to variations in stainless steel demand and production. Technological advances in metal recycling and substitute materials may lower demand for new nickel production in specific applications, affecting the overall nickel market.

COVID-19 Impact Analysis
Nickel inventory levels fluctuated as a result of demand disruptions and supply chain problems. Some industries restricted their nickel purchases, resulting in greater stocks, while others experienced shortages as a result of supply chain disruptions. It caused modifications in mining and processing facilities' health and safety practices. The changes had an effect on output, worker capacity and operational efficiency.

BHP lowered its maximum anticipated copper output by 140,000 tonnes and its anticipated nickel output by 10,000 tonnes. In addition, Rio Tinto has had a difficult start to the year in 2021, attempting to put on new projects that will replace aged mines because to labor shortages and supply chain issues. It revealed that iron ore output fell 8% in the March quarter compared to the same period last year.

Russia- Ukraine War Impact
The regional consequences of the conflict may have an impact on nickel demand and supply dynamics in surrounding nations and regions, particularly in Europe and Asia, which have close relations with both Russia and Ukraine. It impacted the nickel production and supply in the regions, possibly leading to worldwide supply shortages. Geopolitical concerns can have an impact on investor sentiment and market perception of the global nickel market's stability.

Soaring nickel prices have surged in response to the Ukraine conflict, posing supply chain challenges for the energy transition if the correct conditions exist. Because nickel is utilized in small amounts in lithium-ion batteries, EVs require a consistent supply. Despite the small quantities used in the batteries, continued price volatility could increase the price of electric vehicles by up to US$ 1,000.

Segment Analysis
The global nickel market is segmented based on source, mining method, class, application, end-user and region.

Rising Penetration of EVs Drives the Batteries Segment
Batteries is expected to hold about 1/4th of the global nickel market and grow at a significant rate during the forecast period 2023-2030. The growing demand for electric vehicles is primarily driving the nickel market in the automotive industry. High purity nickel derived from sulfide nickel is mostly used in EV batteries.

As per the Society of Manufacturers of Electric Vehicles, sales of electric two-wheelers have more than doubled to 2,33,971 units in 2021 from 1,00735 units in 2020. Owing to its high energy in electric vehicles, it will aid in increasing the usage of nickel for lithium-ion batteries and steel alloys within the automotive sector. Thus, the demand for nickel will rise due to rising contributions from electric vehicle batteries, stainless steel automobile components and other applications during the forecast period.

Geographical Analysis
Presence of Large Steel Manufacturing Companies in Asia-Pacific
Asia-Pacific is anticipated to have the highest CAGR in the global nickel market during the forecast period 2023-2030. The existence of significant stainless-steel manufacturing enterprises and battery manufacturers is mostly to blame. The major nickel ore concentrations in Philippines, Australia, Indonesia and China have helped the region to become the leading nickel producer.

U.S. Geological Survey estimates that Indonesia has the world's greatest nickel reserve, with a mining reserve of 21 million metric tons in 2021. Furthermore, the mining reserves of the Philippines, China and Australia total 28.6 million metric tons. Furthermore, the growing use of nickel in electric vehicles (EVs) is likely to increase the regional industry, since it accounts for a major portion of nickel demand.

Competitive Landscape
The major global players include Glencore, Vale SA, Eramet SA, Sherritt International Corp., Sumitomo Metal Mining Co., Anglo American, MMC Norilsk Nickel, Jinchuan Group Ltd., BHP Billiton Ltd and Pacific Metal Company.

Why Purchase the Report?
• To visualize the global nickel market segmentation based on source, mining method, class, application, end-user and region, as well as understand key commercial assets and players.
• Identify commercial opportunities by analyzing trends and co-development.
• Excel data sheet with numerous data points of nickel market-level with all segments.
• PDF report consists of a comprehensive analysis after exhaustive qualitative interviews and an in-depth study.
• Product mapping available as Excel consisting of key products of all the major players.
The global nickel market report would provide approximately 77 tables, 80 figures and 205 Pages.

Target Audience 2023
• Manufacturers/ Buyers
• Industry Investors/Investment Bankers
• Research Professionals
• Emerging Companies