Nickel Industries [ASX:NIC]
From Ore to Opportunity

The world’s largest pure-play nickel producer, Nickel Industries, is an ASX-listed company with a solid reputation in the global metals and mining sector. Building on this, it is now embarking on a bold new chapter—one defined by ambitious innovation and strategic product diversification.

“We are redefining the landscape of nickel production, not just in scale but in our strategic drive toward the burgeoning electric vehicle (EV) and battery markets,” says Justin Werner, managing director.

The Excelsior Nickel-Cobalt Project

Shifting from its roots as a nickel pig iron (NPI) producer for the stainless-steel industry, Nickel Industries is continuing to add high-pressure acid leach (HPAL) production to its portfolio mix. Having acquired a 10 percent interest in the operational Huayou Nickel Cobalt (HNC) HPAL Project in 2023, the company is continuing its diversification into HPAL production with the Excelsior Nickel-Cobalt (ENC) Project. It is a groundbreaking US$2.3 billion investment that heralds a new era for the business. Slated to come online in October 2025, this initiative will be the first-of-its-kind HPAL operation to produce three critical Class 1 and intermediate nickel products; mixed hydroxide precipitate (MHP), nickel cathode, and nickel and cobalt sulfate. With this move, Nickel Industries is expanding its reach into high-growth markets, distinguishing itself as the largest and most diversified listed nickel producer.

Nickel Industries’ operations are as diverse as they are robust. The Hengjaya Mine supplies saprolite ore to its rotary kiln electric furnaces (RKEFs) and limonite ore to its HPAL operations. The company’s operations are spread across two key industrial hubs in Indonesia—the Indonesia Morowali Industrial Park (IMIP) and the Indonesia Weda Bay Industrial Park (IWIP).

Its client base is evolving alongside its diversification efforts. While all of the Company’s NPI will continue to be sold into Tsingshan’s stainless steel supply chain, ENC (with a projected capacity of 72,000 tons per annum) will see class 1 and intermediate nickel products sold into the global Electric Vehicle (EV) supply chain, with this processing route having the added benefits of offering higher margins and lower carbon intensity.

By forging relationships with clients across Japan, South Korea, North America, and Europe, it aims to establish long-term partnerships in high-growth sectors. As the world electrifies, Nickel Industries is poised to meet the increasing demand for sustainable and high-value nickel products.

The Epicenter of Global Nickel Production

In 2024, Indonesia accounted for an impressive 56 percent of the world's nickel output—a figure projected to surge to 75 percent by the end of this decade. Werner compares Indonesia’s dominance in nickel to the Middle East’s leadership in oil and gas, and Australia’s Pilbara region’s dominance in iron ore. Nickel Industries’ operations are firmly established in this epicenter of global nickel production. Its strategic location provides unparalleled access to resources, complemented by Indonesia’s favorable fiscal regime, including tax holidays ranging from seven to fifteen years.

It also benefits from a distinct partnership with Tsingshan, the largest stainless-steel producer in the world and its biggest shareholder. This collaboration ensures that processing projects have guarantees for capital expenditure (CapEx), production capacity, and delivery timelines —critical factors in avoiding common pitfalls like CapEx blowouts and delays. Such assurances are rare in the resources industry, where cost overruns and delays are common. With these strengths, Nickel Industries has successfully invested over US$3 billion in equity and debt in Indonesia, making it the largest Australian investor in Indonesia’s resource sector.

The nickel production industry is fraught with challenges, from volatile commodity prices to operational inefficiencies. Nickel Industries has successfully navigated these obstacles through its tactical location in Indonesia, robust partnerships, and cost-effective operations. This resilience becomes even more evident compared to other Australian nickel producers, many of which have struggled, with some shutting down or placing operations into care and maintenance.

By consistently generating healthy margins, Nickel Industries stands out while reinforcing its position at the lower end of the cost curve—a critical advantage for sustaining profitability in an increasingly competitive market.

Pioneering Green Nickel Mining

Nickel Industries is both a leader in production and a trailblazer in sustainability. By providing sustainable, low-carbon nickel products, it enables clients to achieve their environmental, social and governance (ESG) goals while securing a reliable supply of critical materials.

It earned a GREEN PROPER rating, the highest accolade in the nickel mining sector, from the Ministry of Environment and Forestry in Indonesia. It is one of only two nickel companies to achieve this distinction, reflecting its dedication to responsible mining practices.

Innovative initiatives further underscore its ESG leadership. It was the first to test and deploy EV haul trucks in Indonesia and now operates a fleet. It is also involved in the country's largest solar project, a 250-megawatt peak installation complemented by an 80-megawatt-hour battery energy storage system. These efforts contribute to reducing the carbon footprint of nickel production, aligning with global sustainability goals.

Nickel Industries’ focus on ESG extends to the international stage. In 2023, its leadership was invited to present at the COP28 Climate Summit in Dubai, where its role in producing responsibly mined, low-carbon nickel for the global EV and battery markets was highlighted.

Paving the Way for an Electrified Future

As it prepares to commission the Excelsior Nickel-Cobalt Project, the future looks bright. By leveraging its location in Indonesia, diversifying the product portfolio, and maintaining a steadfast commitment to sustainability, Nickel Industries is well-positioned to capitalize on the growing demand for nickel in EVs and batteries.

In an industry notable for its challenges, Nickel Industries stands out as a shining example of innovation and resilience. Its journey from a producer of NPI to a diversified leader in high-value nickel products exemplifies the transformative power of strategic vision and planned execution. As the world moves toward a greener, electrified future, Nickel Industries is leading the charge in powering the transition.