The nickel industry in Western Australia, represented by BHP's nickel assets, is facing significant challenges amid a broader industry rout, with the company considering putting its operations on care and maintenance. This downturn is attributed to a combination of factors, including an influx of nickel supply from Indonesia and a decline in demand for electric vehicles (EVs), which has led to a 43% collapse in nickel prices over the past year. This price collapse threatens thousands of jobs in Australia as miners like BHP reduce investment or suspend operations. Indonesia has emerged as a dominant player in the global nickel market, with its nickel-related exports skyrocketing from $1.2 billion in 2016 to $21.6 billion in 2022, underscoring its pivotal role in the electric vehicle battery sector.
Nickel is a key component in electric vehicle batteries, yet few countries can claim as big of a stake over the global nickel sector as Indonesia. https://t.co/atYZBDUDCg
🇮🇩 Indonesia's nickel-related exports. 2016: $1.2 billion 2022: $21.6 billion (Financial Times)
Australia’s nickel industry has been hit by influx of Indonesian nickel supply & falling demand for EVs Prices of mineral have collapsed 43% over past year, putting thousands of jobs at risk in Australia as miners have pulled back investment or suspended operations Cui bono? https://t.co/KEzMrGMnI7
ANALYSIS: Mining nickel, the most volatile of commodities, has always been a tough job. But why is the Australian nickel sector at crisis point? https://t.co/JfzMfXTQfR https://t.co/kJqF2onM5B
The Western Australia Nickel assets owned by BHP are the latest casualty of the rout currently disrupting the #nickel industry, with the miner saying that it might put the operations in the unit on care and maintenance https://t.co/nZ8R513qeY