IN SUMMARY
Understanding nickel, from stainless steel to EV batteries
Understanding nickel, from stainless steel to EV batteries
Nickel is a hard, silvery-white transition metal whose corrosion resistance, high-temperature strength and electrochemical properties make it essential to stainless steel, alloys, catalysts and, increasingly, batteries. It has become a critical material in the energy transition, as battery makers raise the nickel content of NMC cathodes to boost energy density. But nickel comes from two very different ore types, sulphides and laterites, whose processing routes diverge sharply in complexity, co-products and carbon footprint. This guide, part of Minviro's "Explore the Elements" series, introduces nickel's sources, processing routes and the role of LCA.
Nickel is a hard, silvery-white transition metal whose corrosion resistance, high-temperature strength and electrochemical properties make it essential to stainless steel, alloys, catalysts and, increasingly, batteries. It has become a critical material in the energy transition, as battery makers raise the nickel content of NMC cathodes to boost energy density. But nickel comes from two very different ore types, sulphides and laterites, whose processing routes diverge sharply in complexity, co-products and carbon footprint. This guide, part of Minviro's "Explore the Elements" series, introduces nickel's sources, processing routes and the role of LCA.
Nickel is a hard, silvery-white transition metal whose corrosion resistance, high-temperature strength and electrochemical properties make it essential to stainless steel, alloys, catalysts and, increasingly, batteries. It has become a critical material in the energy transition, as battery makers raise the nickel content of NMC cathodes to boost energy density. But nickel comes from two very different ore types, sulphides and laterites, whose processing routes diverge sharply in complexity, co-products and carbon footprint. This guide, part of Minviro's "Explore the Elements" series, introduces nickel's sources, processing routes and the role of LCA.
Nickel is a battery metal on a steep growth curve. Stainless steel and batteries account for around 82% of demand, and nickel for EV batteries (about 280,000 tonnes a year, roughly 10% of demand today) could exceed 1.3 million tonnes by 2030 as NMC cathodes trend toward higher nickel content.
Nickel is a battery metal on a steep growth curve. Stainless steel and batteries account for around 82% of demand, and nickel for EV batteries (about 280,000 tonnes a year, roughly 10% of demand today) could exceed 1.3 million tonnes by 2030 as NMC cathodes trend toward higher nickel content.
Nickel is a battery metal on a steep growth curve. Stainless steel and batteries account for around 82% of demand, and nickel for EV batteries (about 280,000 tonnes a year, roughly 10% of demand today) could exceed 1.3 million tonnes by 2030 as NMC cathodes trend toward higher nickel content.
Two ore types, two very different footprints. About 72% of nickel comes from laterite ores and 28% from sulphides, and the processing route, smelting, HPAL, or others, largely determines the environmental impact.
Two ore types, two very different footprints. About 72% of nickel comes from laterite ores and 28% from sulphides, and the processing route, smelting, HPAL, or others, largely determines the environmental impact.
Two ore types, two very different footprints. About 72% of nickel comes from laterite ores and 28% from sulphides, and the processing route, smelting, HPAL, or others, largely determines the environmental impact.
Supply is concentrated in Southeast Asia. Around 60% of production originates in Southeast Asia and Oceania, led by Indonesia, which is targeting two million tonnes of annual capacity by 2030.
Supply is concentrated in Southeast Asia. Around 60% of production originates in Southeast Asia and Oceania, led by Indonesia, which is targeting two million tonnes of annual capacity by 2030.
Supply is concentrated in Southeast Asia. Around 60% of production originates in Southeast Asia and Oceania, led by Indonesia, which is targeting two million tonnes of annual capacity by 2030.
Why nickel matters, in steel and in batteries
Nickel is a hard, silvery-white transition metal found in minerals such as pentlandite, garnierite and laterites, and its corrosion resistance, strength at high temperatures and electrochemical properties make it a key input to stainless steel, alloys, catalysts and batteries. Demand is growing fast, with a forecast compound annual growth rate of 4.8% from 2023 to 2028, driven heavily by batteries. Its role in EV cathodes is central: the nickel:manganese:cobalt (NMC) ratio has shifted from 1:1:1 toward roughly 9:0.5:0.5, raising nickel content to increase energy density, and emerging chemistries like LNMO also depend on nickel. Today the industry uses around 280,000 tonnes of nickel a year for EV batteries, about 10% of total demand, a figure projected to exceed 1.3 million tonnes by 2030. Stainless steel and batteries together make up around 82% of demand, with the rest going to alloys, superalloys, electroplating and special steels.
Nickel is a hard, silvery-white transition metal found in minerals such as pentlandite, garnierite and laterites, and its corrosion resistance, strength at high temperatures and electrochemical properties make it a key input to stainless steel, alloys, catalysts and batteries. Demand is growing fast, with a forecast compound annual growth rate of 4.8% from 2023 to 2028, driven heavily by batteries. Its role in EV cathodes is central: the nickel:manganese:cobalt (NMC) ratio has shifted from 1:1:1 toward roughly 9:0.5:0.5, raising nickel content to increase energy density, and emerging chemistries like LNMO also depend on nickel. Today the industry uses around 280,000 tonnes of nickel a year for EV batteries, about 10% of total demand, a figure projected to exceed 1.3 million tonnes by 2030. Stainless steel and batteries together make up around 82% of demand, with the rest going to alloys, superalloys, electroplating and special steels.
Two ore types: sulphides and laterites
Terrestrial nickel comes from two primary ore types with very different characteristics. Sulphide ores carry nickel grades from about 0.25% to 4% and are mined underground and open-pit in regions like Canada's Sudbury Basin, Russia's Norilsk, Western Australia and South Africa's Bushveld Complex. Their great advantage is valuable co-products: copper, cobalt, platinum group metals and gold often occur alongside the nickel, improving both the economics and, because one supply chain yields several metals, the environmental picture. Laterite ores are surface deposits split into limonite (shallower, higher iron, 0.9–1.6% nickel) and saprolite (deeper, higher magnesium, 1.5–2.5% nickel). In 2022 around 72% of nickel was extracted from laterites and 28% from sulphides, a shift toward laterites driven by Southeast Asian production and by processing advances that have made lower-grade deposits economically viable.
Terrestrial nickel comes from two primary ore types with very different characteristics. Sulphide ores carry nickel grades from about 0.25% to 4% and are mined underground and open-pit in regions like Canada's Sudbury Basin, Russia's Norilsk, Western Australia and South Africa's Bushveld Complex. Their great advantage is valuable co-products: copper, cobalt, platinum group metals and gold often occur alongside the nickel, improving both the economics and, because one supply chain yields several metals, the environmental picture. Laterite ores are surface deposits split into limonite (shallower, higher iron, 0.9–1.6% nickel) and saprolite (deeper, higher magnesium, 1.5–2.5% nickel). In 2022 around 72% of nickel was extracted from laterites and 28% from sulphides, a shift toward laterites driven by Southeast Asian production and by processing advances that have made lower-grade deposits economically viable.
Processing routes and their impact
The processing route depends on the ore and largely determines the footprint. Sulphide concentrates are most commonly treated pyrometallurgically by smelting and conversion to nickel matte; usefully, breaking the sulphide bonds releases energy and lowers the external energy needed, and the matte can then be refined into nickel metal or battery-grade nickel sulphate. Some operations treat sulphides hydrometallurgically instead, such as Terrafame in Finland and Vale's Long Harbour in Canada. Laterites follow three main routes: smelting of higher-grade saprolites via rotary kiln-electric furnace to make ferronickel and nickel pig iron for stainless steel (energy-intensive, with a high GHG footprint from carbon reductants and coal-based power); High-Pressure Acid Leaching (HPAL) of limonites to produce mixed hydroxide or sulphide precipitates that are refined into high-purity battery chemicals; and the older Caron process, now rare. This divergence is why two batches of "nickel" can carry dramatically different environmental impacts.
The processing route depends on the ore and largely determines the footprint. Sulphide concentrates are most commonly treated pyrometallurgically by smelting and conversion to nickel matte; usefully, breaking the sulphide bonds releases energy and lowers the external energy needed, and the matte can then be refined into nickel metal or battery-grade nickel sulphate. Some operations treat sulphides hydrometallurgically instead, such as Terrafame in Finland and Vale's Long Harbour in Canada. Laterites follow three main routes: smelting of higher-grade saprolites via rotary kiln-electric furnace to make ferronickel and nickel pig iron for stainless steel (energy-intensive, with a high GHG footprint from carbon reductants and coal-based power); High-Pressure Acid Leaching (HPAL) of limonites to produce mixed hydroxide or sulphide precipitates that are refined into high-purity battery chemicals; and the older Caron process, now rare. This divergence is why two batches of "nickel" can carry dramatically different environmental impacts.
LCA and the challenge of decarbonising nickel
Nickel mining, processing and refining carry significant environmental impacts, and LCA quantifies both the direct emissions and the embodied impacts of the energy, chemicals, reagents and transport involved, which matters most for reagent- and energy-heavy routes. LCA is increasingly the standard way to compare the environmental performance of different routes to a similar product, and regulation is accelerating its adoption: the EU Battery Regulation is the first legislation to embed LCA at its core, and that pressure on battery makers is flowing upstream to nickel sulphate producers. Decarbonisation options differ by ore. Sulphide operations hold an intriguing possibility, the ultramafic minerals in their tailings (brucite, serpentine, olivine) can react with CO₂ to form stable carbonates, potentially sequestering carbon, though the process is energy-intensive and may simply shift emissions from Scope 1 to Scope 2. Laterite operations face the difficulty of integrating renewable energy in remote, often tropical or mountainous regions where infrastructure is limited and the high-temperature, high-pressure processing needs continuous power. In both cases, LCA is what reveals the real trade-offs and guards against shifting emissions from one part of the chain to another.
Nickel mining, processing and refining carry significant environmental impacts, and LCA quantifies both the direct emissions and the embodied impacts of the energy, chemicals, reagents and transport involved, which matters most for reagent- and energy-heavy routes. LCA is increasingly the standard way to compare the environmental performance of different routes to a similar product, and regulation is accelerating its adoption: the EU Battery Regulation is the first legislation to embed LCA at its core, and that pressure on battery makers is flowing upstream to nickel sulphate producers. Decarbonisation options differ by ore. Sulphide operations hold an intriguing possibility, the ultramafic minerals in their tailings (brucite, serpentine, olivine) can react with CO₂ to form stable carbonates, potentially sequestering carbon, though the process is energy-intensive and may simply shift emissions from Scope 1 to Scope 2. Laterite operations face the difficulty of integrating renewable energy in remote, often tropical or mountainous regions where infrastructure is limited and the high-temperature, high-pressure processing needs continuous power. In both cases, LCA is what reveals the real trade-offs and guards against shifting emissions from one part of the chain to another.