USGS: Global Nickel Production Up 8% in 2021

According to preliminary estimates from the United States Geological Survey (USGS), global nickel ore production in 2021 will reach 2.7 million metal tons, up 8% from 2020 (2.51 million tons).

Indonesia is once again the undisputed nickel head producer, with mine output reaching 1 million tonnes, followed by the Philippines (370,000 tonnes) and Russia (250,000 tonnes).

Indonesia's nickel mine production is expected to increase by 30 percent, thanks to ongoing nickel pig iron and stainless steel projects, the USGS said. In addition, Indonesia's first wet high-pressure acid leaching project was launched on Obi Island in May last year to produce cobalt nickel hydroxide for battery-grade nickel sulfate feedstock.

The USGS added that the average annual cash price of nickel on the LME in 2021 is expected to rise 30% from 2020, due to expectations of increased nickel use in electric vehicle batteries and continued strong demand for stainless steel.