https://sputnikglobe.com/20240217/australias-nickel-industry-seeks-relief-as-global-supply-glut-hits-hard-1116829422.html
Australia's Nickel Industry Seeks Relief as Global Supply Glut Hits Hard
Australia's Nickel Industry Seeks Relief as Global Supply Glut Hits Hard
Sputnik International
Amid global concerns over the nickel market's downturn and its impact on electric vehicle (EV) battery production, the Australian government's decision to include the metal in its commodities subsidy list signals a crucial step towards supporting the struggling industry.
2024-02-17T09:09+0000
2024-02-17T09:09+0000
2024-02-17T19:10+0000
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Nickel has been included in the commodities list qualified for subsidy from the Australian government's US$3.9bn stimulus fund.The move provides relief to the struggling industry amidst plummeting prices impacting producers of the mineral crucial for electric vehicle (EV) batteries, the Financial Times reports.Canberra's action on Friday spotlights the growing apprehension among nations worldwide that the market oversupply of inexpensive nickel from Indonesia, with dominance by Chinese manufacturers, is contributing to the closure of mines and diminishing self-reliance in supply chains for emergent eco-friendly industries.The flooding of the nickel market by Indonesian supplies and the decrease in EV demand have taken a toll on the Australian nickel industry. The mineral’s prices dwindled by 43 percent in 2023, endangering the livelihoods of thousands of workers in the country’s mining sector. Consequently, companies like First Quantum, IGO, and Wyloo have reduced investment or stopped work temporarily.BHP said this week that it anticipates a $5.4 billion write-off expense linked to its Nickel West division and is considering shutting down its facility in Western Australia, potentially leaving over 3,000 of its workers unemployed.However, the news of the government’s intervention on Friday delighted investors as shares in major mining firms like IGO witnessed a 9 percent increase, while BHP saw a more modest 1 percent gain.Nickel is nowadays used in EV batteries, boosting the car's energy density and enabling increased mileage for each charge. Being recyclable, the metal can go through numerous reuse cycles without any loss of quality. A significant 68 percent of the mineral in consumer products today is sourced from recycled materials, underlining its sustainability.With the backing of the US, Australia is actively working towards creating an independent supply chain, reducing dependency on China — the main Asian target of Washington's hostility — especially in rare earth and cobalt projects. However, the problems in the nickel industry could scupper those pans, and the government of the state of Western Australia is exploring options such as royalty relief to support the sector.
https://sputnikglobe.com/20221122/us-and-eu-could-cut-their-dependence-on-chinese-ev-batteries-by-2030--but-for-a-solid-price--1104544206.html
https://sputnikglobe.com/20240117/australian-nickel-giants-struggle-against-indonesias-supply-dominance-1116226768.html
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nickel price, nickel, commodities, cheap indonesian nickel, nickel market, australian nickel industry, australia's nickel crisis, first quantum, bhp, igo, wyloo, australian government's stimulus fund.
Australia's Nickel Industry Seeks Relief as Global Supply Glut Hits Hard
09:09 GMT 17.02.2024 (Updated: 19:10 GMT 17.02.2024) Amid global concerns over the nickel market's downturn and its impact on electric vehicle (EV) battery production, the Australian government's decision to include the metal in its commodities subsidy list signals a crucial step towards supporting the struggling industry.
Nickel has been included in the commodities list qualified for subsidy from the Australian government's US$3.9bn stimulus fund.
The move provides relief to the struggling industry amidst plummeting prices impacting producers of the mineral crucial for electric vehicle (EV) batteries, the Financial Times reports.
Canberra's action on Friday spotlights the growing apprehension among nations worldwide that the market
oversupply of inexpensive nickel from Indonesia, with dominance by Chinese manufacturers, is contributing to the closure of mines and diminishing self-reliance in supply chains for emergent eco-friendly industries.
The flooding of the
nickel market by Indonesian supplies and the decrease in EV demand have taken a toll on the Australian nickel industry.
The mineral’s prices dwindled by 43 percent in 2023, endangering the livelihoods of thousands of workers in the country’s mining sector. Consequently, companies like First Quantum, IGO, and Wyloo have reduced investment or stopped work temporarily.
22 November 2022, 13:27 GMT
BHP said this week that it anticipates a $5.4 billion write-off expense linked to its Nickel West division and is considering shutting down its facility in Western Australia, potentially leaving over 3,000 of its workers unemployed.
“The international nickel price is forecast to stay relatively low through 2024, and likely for several years to come until the surplus of nickel in the market is corrected,” Madeleine King, Australia’s resources minister, told media.
However, the news of the government’s intervention on Friday delighted investors as shares in major mining firms like IGO witnessed a 9 percent increase, while BHP saw a more modest 1 percent gain.
Nickel is nowadays used in EV batteries, boosting the car's energy density and enabling increased mileage for each charge. Being recyclable, the metal can go through numerous reuse cycles without any loss of quality. A significant 68 percent of the mineral in consumer products today is sourced from recycled materials, underlining its sustainability.
With the backing of the US, Australia is actively working towards creating an independent supply chain, reducing dependency on China — the main Asian target of Washington's hostility — especially in rare earth and cobalt projects.
However, the problems in the nickel industry could scupper those pans, and the government of the state of Western Australia is exploring options such as royalty relief to support the sector.
