Nickel facts

Nickel is a versatile metal valued for its strength, corrosion resistance, and ability to withstand extreme temperatures. Primarily used in stainless steel production, it supports a wide range of industries and everyday products. More recently, nickel’s role has expanded into advanced technologies, particularly in batteries for electric vehicles (EVs), as the market for EVs and renewable energy accelerates. Its growing importance in sustainable technologies has made nickel a cornerstone of the green transition, positioning it at the forefront of innovation and the shift toward a low-carbon economy.

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Uses

Stainless steel is the largest end use for nickel, accounting for nearly two thirds of total consumption. Nickel is also used as an alloying agent in the production of ferrous and non-ferrous metal products.

It is also used in electroplating, where a thin layer of nickel is applied to a metal object for decorative purposes and to enhance resistance to corrosion and wear.

While nickel has long been used in nickel-cadmium batteries, its growing role in lithium-ion battery production for EVs is an important shift in its applications.

Production

In 2023, Canada produced 158,668 tonnes of nickel in concentrate, an 11% increase from the previous year. Ontario led the country in nickel production, contributing 39% of the total, while Newfoundland and Labrador and Quebec each accounted for 27%. Manitoba supplied the remaining 7%.

Nickel refining in Canada takes place at three key refineries located in Fort Saskatchewan, Alberta; Sudbury, Ontario; and Long Harbour, Newfoundland and Labrador.

Ontario-based Electra Battery Materials is developing a cobalt and nickel sulfate production facility along with a lithium-ion battery recycling plant north of Toronto.

International context

Global nickel mine production in 2023 was estimated at 3.6 million tonnes, an 8% increase from 2022. Indonesia was the largest producer, accounting for 1.8 million tonnes or 51% of global output. Canada ranked sixth, contributing 5% of the global total.

World reserves

In 2023, global nickel reserves were estimated at over 130 million tonnes. The largest reserves are in Indonesia (42%), Australia (18%), and Brazil (12%). Canada holds an estimated 2.2 million tonnes, representing 2% of global reserves, and ranks eighth globally.

Global nickel resources in 2023 were estimated at more than 350 million tonnes, with 54% found in laterite deposits and 35% in magmatic sulfide deposits. Nickel has also been found in seafloor crusts and nodules.

Trade

Canada’s total trade in nickel and nickel-based products in 2023 was valued at $6.7 billion. Exports of nickel and nickel-based products were valued at $5.8 billion, and imports were valued at $853.0 million.

Canada exported 99,618 tonnes of unwrought nickel valued at $3.2 billion in 2023. The United States imported close to 49% of these exports by volume, while 7% was destined for China. A further 14% went to the Netherlands, 6% went to Japan, and the remainder was shipped to 18 other countries.

Prices

The price of nickel has fluctuated significantly over the last decade. The average monthly price per tonne declined to a decade low of US$8,299 in February 2016, and slowly recovered to a peak US$17,657 in September 2019. The price subsequently declined because of the impacts of COVID-19 and then climbed to a decade high of US$25,834 in 2022.

In 2023, the average monthly price fell by 17% compared to the previous year, reaching US$21,521. The leading cause for the price drop in 2023 was an increasing surplus of nickel from Indonesia in the form of intermediate matte and mixed nickel-cobalt hydroxide (also called MHP by the industry), which are used to produce battery-grade nickel sulfate, primarily in China, coupled with decreasing demand for stainless steel.