Nickel Market Growth, Demand & Analysis By 2033

(MENAFN- Straits Research) Introduction

Nickel is a silver-white metal widely used as an alloy in both ferrous and non-ferrous applications, with its primary use in steel alloys. In addition to stainless steel, nickel plays a crucial role in a variety of other industries, including nickel plating, coin production, ceramics, coloring glass, batteries, electronic circuits, and the creation of nickel compounds.

While stainless steel production consumes nearly all forms of nickel feed (except for specialized products like nickel powder and compounds), the quality of nickel used in stainless steel has minimal impact on the final product's quality. As a result, steelmakers tend to favor more cost-effective, lower-grade nickel options such as NPI (Nickel Pig Iron), ferronickel, and nickel oxide.

This trend has led to a decrease in the use of high-grade nickel in stainless steel production in recent years as manufacturers seek to reduce production costs without compromising the structural integrity of the steel.

Growth in stainless steel production drives the global market

Stainless steel, which accounts for over 65% of global nickel demand, continues to be a major growth driver. Nickel's unique properties, such as enhancing corrosion resistance, durability, and strength, make it essential across industries like construction, automotive, and appliances. Rapid industrialization in emerging markets such as China, India, and Indonesia is significantly boosting stainless steel production.

A notable development in this sector occurred in October 2024 when Jindal Stainless acquired a 100% stake in Sulawesi Nickel Processing Industries Holdings, forming a joint venture in Indonesia to develop and operate a stainless-steel melt shop. This highlights the growing potential of the stainless-steel market and the increasing investments being made to meet future demand.

By recycling nickel from end-of-life products like stainless steel scrap and spent EV batteries, the industry can reduce its reliance on primary nickel sources, which are vulnerable to price fluctuations and supply chain disruptions. This practice not only mitigates environmental concerns but also supports the circular economy. Companies such as Glencore and Umicore are increasingly focused on recovering nickel from battery scrap, advancing sustainable practices within the industry.

A prime example is Nth Cycle, a US-based company that pioneered producing premium nickel-cobalt mixed hydroxide precipitate (MHP). Nth Cycle's innovative solution aligns with the objectives of the Inflation Reduction Act, earning a $7.2 million tax credit for its Ohio facility. This initiative underscores the expanding role of nickel recycling in achieving sustainability goals and meeting regulatory standards, presenting significant market opportunities for the future.

Regional Analysis

Asia-Pacific dominates the global nickel market, driven by robust demand from stainless steel production and battery manufacturing. Key regions include China, Indonesia, and Japan. China remains the largest global consumer of nickel, accounting for over 50% of total demand. This is largely due to its immense stainless steel production capacity and rapidly expanding EV battery manufacturing sector. Indonesia has emerged as a leading nickel producer, especially in nickel pig iron (NPI), and has become a key global hub for nickel processing.

The country's strategic ban on raw nickel ore exports has prompted significant investments in local smelting and refining capabilities, including the development of high-pressure acid leaching (HPAL) plants to produce battery-grade nickel. This move not only strengthens Indonesia's position in the global supply chain but also supports the growing demand for nickel in electric vehicles and other advanced technologies.

• The global nickel market size was valued at USD 16 billion in 2024 and is expected to grow from USD 46.39 billion in 2025 to reach USD 82.59 billion in 2033, growing at a CAGR of 7.5% over the forecast period (2025 – 2033).
• Based on type, the global marketis segmented into wrought nickel, nickel-iron alloys, nickel-copper alloys, nickel-molybdenum alloys, nickel-chromium alloys, and others. The nickel-chromium alloys segment owns the highest market share.
• Based on application, the global market is segmented into stainless steel, batteries, alloy production, electroplating, and others. The stainless-steel segment is the largest revenue contributor to the market.
• Asia Pacific is the most significant global nickel market.