Nickel Mining Market Size, Share & Trends Analysis Report By End-use (Stainless Steel, Batteries, Non-Ferrous Alloys, Others), By Region, And Segment Forecasts, 2023 - 2030

Nickel Mining Market Size & Trends

The global nickel mining market size was estimated at USD 50.40 billion in 2022 and is estimated to grow at a compound annual growth rate (CAGR) of 6.6% from 2023 to 2030. Growth in end-use industries such as construction, consumer durables, and machinery & equipment are propelling the growth of the stainless steel industry. Nickel is one of the key raw materials of stainless steel. Hence, development in the stainless steel industry is contributing to the growth of the market. According to the Nickel Institute, over two-thirds of the world's nickel is utilized in the production of stainless steel. It acts as an alloying agent, enhancing essential properties such as formability, ductility, and weldability while also increasing corrosion resistance for specific applications.

Currently, there is only one active nickel-cobalt mine in the U.S. that produces about 17.0 kilotons of nickel every year. It is a crucial metal for several industries such as electric vehicles (EVs), defense & aerospace, and steel. For 40-50% of nickel usage, the U.S. is reliant on imports, therefore, it is working towards enhancing its production.

For instance, a contract worth USD 20.6 million was awarded to Talon Metals Corp in September 2023, by the U.S. DoD to enhance nickel mining in the country. The funding is anticipated to aid the company’s exploration activities in the Tamarack Intrusive Complex. Such initiatives are expected to increase the market growth across the forecast period. In June 2023, Talon Metals Corp. began the environmental review process for its nickel mine located near Tamarack in the northern region by submitting regulatory filings in Minnesota. The mining project is expected to be a major supplier for Tesla's electric vehicle battery production, making regulatory permissions vital for its success. Positive regulatory results could have major benefits for the company's operations.

The process of extracting and producing nickel can cause serious harm to the environment. It can lead to pollution of air, water, and soil, as well as the destruction of wildlife habitats. The release of harmful chemicals like heavy metals into nearby water sources can be devastating for aquatic life and the well-being of local communities that depend on these water sources for drinking, irrigation, and other essential needs. Thus, product mining is always under strict environmental scrutiny, which hinders market growth.

Regional Insights

Based on region, Asia Pacific held the largest revenue share of over 57.0% in 2022. The growth in various industries, such as battery manufacturing, automotive & defense, and petrochemicals, is increasing the demand for nickel, which is positively influencing its mining activity.

For instance, in April 2023, Philippines-based Nickel Asia Corp announced expansion plans for its operations in the country, with 2 additional mines. In addition, it has also explored options for including a third processing plant in the country. The Russia-Ukraine war has benefitted the Philippines’ nickel industry, as Russia’s output has been declining in the past few years coupled with the aversion it is receiving in trade.

Europe is anticipated to register a CAGR of 7.8% in terms of revenue over the forecast period. The EU has recognized the importance of nickel in the energy transition and has added it to the list of critical minerals. To ensure a diversified supply chain, the EU has set benchmarks for the extraction of at least 10% of the annual consumption of nickel within the boundary of Europe. This move is expected to have a positive impact on the mining activity in the region.

North America is anticipated to register the fastest CAGR of 8.1% over the forecast period. The increasing demand for nickel-based products in aerospace and defense industries has raised its significance as a critical mineral.In addition, the growing emphasis on accomplishing a domestic supply chain for the EV battery segment is anticipated to boost production in the region.

End-use Insights

Based on end-use, the non-ferrous alloys segment is anticipated to register a CAGR of 6.8% over the forecast period. The alloys are renowned for their durability, high and low-temperature performance, and corrosion resistance. As a result, they find applications in electronic components and medical devices in several industries, including aerospace & defense, oil & gas, medical, and power generation.

Growth in end-use industries is anticipated to augment segment growth over the forecast period. For instance, in December 2022, Collins Aerospace announced plans to invest USD 200.0 million in India over the next five years in engineering and manufacturing activities. This, in turn, will augment the need for non-ferrous alloys in the coming years.

The batteries segment is anticipated to register the fastest CAGR of 7.2% in terms of revenue, over the forecast period.Nickel batteries offer a cost-effective solution for achieving higher energy density and storage capabilities.For instance, in June 2023, GM and Samsung SDI announced building an EV battery cell plant. The USD 3 billion plant is coming up in Indiana, U.S. It is anticipated to commence production of high-nickel prismatic and cylindrical battery cells in 2026.

Key Companies & Market Share Insights

The nickel mining industry is highly competitive and to gain an edge, major players are acquiring their competitors. In June 2023, Glencore, Stellantis, and Volkswagen's battery unit PowerGo agreed to support a USD 1.00 billion deal by the special purpose acquisition company (SPAC) ACG Acquisition Company to buy two mines in Brazil.

Nickel Mining Market Report Scope

Global Nickel Mining Market Report Segmentation

This report forecasts revenue and volume growth at country & regional levels and provides an analysis of the industry trends in each of the sub-segments from 2018 to 2030. For this study, Grand View Research has segmented the global nickel mining market report based on end-use and region.

• End-use Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • Stainless Steel

  • Non-Ferrous Alloys

  • Batteries

  • Others

• Regional Outlook (Volume, Kil0tons; Revenue, USD Million, 2018 - 2030)

  • North America

    • U.S.

    • Canada

  • Europe

    • Russia

    • Norway

  • Asia Pacific

    • China

    • Philippines

    • Australia

    • Indonesia

  • Central & South America

    • Brazil

  • Middle East & Africa