Gasan Ramazanov: reduction of nickel production in Indonesia will spur investor interest

Gasan Ramazanov, expert at the Gaidar Institute, told Prime about the consequences of reducing nickel production in Indonesia, which has one-fifth of the world's reserves.

According to the expert, this will spur investors' interest in new nickel ore mining and processing projects and may also trigger a significant rise in prices for this metal worldwide.

Nickel is used in industrial machinery, military equipment, transportation, aerospace, water transport and marine structures. The metal also plays a key role in the production of batteries for electric vehicles, making it a critical component in the transition to green energy.

The long-term growth potential for nickel consumption remains significant, especially as global industries move towards decarbonization. For example, for a typical electric vehicle powered by a 62.5 kWh battery, the weight of nickel would be 43 kg when broken down by base metals.

The largest nickel importers are China, Canada, Finland and Japan. These countries are the most vulnerable to a drop in global nickel production and a rise in nickel prices.

Tuesday, 28.01.2025