- Roughly two-thirds of nickel demand is still stainless steel.
- Battery demand, while smaller, is the fastest-growing segment.
- The two end markets require different nickel chemical forms (Class 1 vs Class 2), which has split the market into two pricing regimes.
What are the two main nickel markets?
Stainless steel is still the largest single use of nickel, accounting for the majority of annual demand. Lithium-ion batteries are the fastest-growing use. The two markets need different chemical forms of nickel and have at times priced very differently.
Class 1 vs Class 2 nickel
Class 1 nickel is high-purity nickel (98 percent or above), suitable for direct use in batteries and other chemical applications. Class 2 nickel includes ferronickel and nickel pig iron and is used primarily in stainless steel. Battery makers need Class 1 product or its chemical equivalent.
Indonesia’s role
Indonesia has become a dominant producer of nickel through laterite mining and the build-out of high pressure acid leach (HPAL) processing capacity. Indonesian supply has been a major source of new Class 1-equivalent nickel for the battery market.
Stainless steel demand
Stainless steel demand is tied to construction, manufacturing, and durable goods cycles. China is the largest single consumer of stainless steel by a wide margin. Demand here is more cyclical than battery demand.
Battery demand outlook
Battery demand for nickel is driven primarily by high-nickel cathode chemistries (NCM 622, 811, NCA). Battery makers continue to refine cathode chemistries, and the nickel content per kilowatt hour can shift over time.
| End market | Share of demand |
|---|---|
| Stainless steel | Approximately 65 percent |
| Batteries | 10 to 15 percent and rising |
| Alloys, plating, and other | Approximately 20 to 25 percent |
Demand splits and product class definitions follow public-domain analysis by the International Nickel Study Group, the US Geological Survey, and Natural Resources Canada.
Frequently asked questions
Demand splits and product class definitions follow public-domain analysis by the International Nickel Study Group, the US Geological Survey, and Natural Resources Canada.
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