A report by the Centre for Research on Energy and Clean Air (CREA) says stainless steel remains the main user of Indonesia’s nickel despite “green nickel” marketing efforts.
In 2025, 83% of nickel output will go to stainless steel, versus 17% for Electric Vehicle (EV) batteries. By 2030, stainless steel is expected to consume 51% of the supply, while EV batteries take 18%. Nickel demand from batteries is uncertain as more EVs shift to nickel-free technologies.
Indonesia, which produces over half of the global refined nickel, faces pressure from stricter environmental rules and carbon taxes, with its coal-powered production often labeled “dirty nickel.” Risks to exports and supply chains, including disruptions around the Strait of Hormuz, could impact the sector.
Separately, BMI, a Fitch Solutions Company, raised its 2026 nickel price forecast to US$16,600/ton, citing policy uncertainty and potential supply risks.