Nickel Pellet Market

Nickel Pellet Market Outlook (2024 to 2034)

The global nickel pellet market is projected to value at US$ 1,950.8 million in 2024 and expand at a CAGR of 5.9% to end up at US$ 3,473.3 million by 2034.

The nickel pellet market is gaining attraction as it serves several industries due to the fact that nickel is among the most versatile metals, especially in the making of high-performance materials. Nickel pellets are refined forms of nickel, most commonly used for the manufacture of alloys, in electroplating, and in the manufacture of stainless steel.

These pellets are produced by such processes as sulfide or laterite ore refinement; the final product is of high purity and optimum quality, thus being a very good input material for many industrial processes. One of the key growth factors in the nickel pellet market is the demand for stainless steel, accounting for the majority of share in consumption of nickel globally.

The production of stainless steel, especially in the Asia-Pacific and Europe, requires good-quality nickel pellets for improving corrosion resistance, toughness, and formability. Stainless steel products are highly consumed by the construction, transportation, and consumer goods industries; hence, the demand for nickel is consistent.

It would also be an understatement if one failed to take into consideration the recent trend of nickel usage in battery output, keeping in mind those meant specifically for electric vehicles or what is popularly termed EVs. Nickle is one of the essential elements in lithium-ion batteries for electric vehicles, owing to its properties for maximum energy density and efficiency.

Applications that produce high-performance alloys, like aerospace industries, oil and gas, and power generation plants, have already seen an increased demand that will continuously be high for nickel. Special industries also utilize nickel useful properties in improving strength and heat resistance of materials used under extreme conditions. Because it is also indispensable in the making of turbine blades, engine parts, and other high-temperature uses that are so vital to these industries.

• Between 2024 and 2034, by purity, standard purity (99.98%) is expected to produce an absolute dollar opportunity US$ 404.1 million.
• By application, stainless steel is expected to dominate the market and it is expected to produce an absolute dollar opportunity US$ 717.6 million.
• In 2024, the automotive industry is holding a 25.1% market share in the end use segment and is estimated to be worth US$ 489.0 million.

Report Attributes	Details
Market Size (2023A)	US$ 1,845.2 million
Estimated Market Value (2024E)	US$ 1,950.8 million
Forecasted Market Value (2034F)	US$ 3,473.3 million
Global Market Growth Rate (2024 to 2034)	5.9% CAGR
Asia Pacific Market Share (2024E)	38.8%
Asia Pacific Market Growth Rate (2024 to 2034)	6.1% CAGR
China Market Growth Rate (2024E)	5.9% CAGR
Key Companies Profiled	Vale SA; Nornickel; Jinchuan Group; Glencore; Sherritt International Corporation; BHP Group (Nickel West); Sumitomo Metal Mining Co., Ltd.; Huayou New Energy Technology (Quzhou) Co., Ltd.; CNGR Advanced Material; Lundin Mining Corporation; Anglo American; Eramet; Ambatovy; MM Ceramics & Ferro Alloys; Kurt J. Lesker Company.

Sales Analysis of Nickel Pellet (2019 to 2023) vs. Market Forecasts (2024 to 2034)

The market for nickel pellet grew at a growth rate of 5.4% from 2019 to 2023, and by the end of 2023, it was valued at US$ 1,845.2 million. Historically, this market has grown consistently because of the rise in stainless steel manufacturing, the growth in the aerospace sector's demand for nickel-based alloys, and the early-stage growth associated with electric vehicles. The need for high-purity nickel pellets has greatly increased by the expansion of the Asia-Pacific area, particularly in China.

Historical Report Attributes	Details
Market Size (2019A)	US$ 193.7 million
Market Size (2023A)	US$ 1,845.2 million
Historical CAGR (2019-2023)	6.8%
Forecasted CAGR (2024-2034)	5.9%

• Short Term (2024 to 2027): Acceleration of growth would begin in a period between 2024 and 2027, based on the growth of electric vehicles and demand for nickel-rich batteries. Investments into renewable energy storage and infrastructure development would further push demand. There will be improved production efficiency as there are technological advancements made in mining and refining; the focal point is therefore sustainability.
• Medium Term (2027 to 2030): In this period, the market will witness much stronger growth due to the widespread adoption of electric vehicles. The importance of nickel for clean energy solutions will continue to rise, especially in Europe and North America. Growing regulations for sustainable sourcing will also trigger industrial changes toward greener practices which will add more transparency and efficiency to value chains.
• Long Term (2030 to 2034): By the period of 2030-2034, the demand for nickel pellets will be fully matured, wherein electric mobility and renewable energy industries will dominate the demand. Breakthrough technologies related to recycling nickel and carbon-neutral mining processes will mark the leaders in the industry.

According to Fact.MR, the Nickel Pellet size is valued at US$ 1,950.8 million in 2024. Demand is projected to rise at a CAGR of 5.9% through 2034 to reach US$ 3,473.3 million by the end of the forecast period (2024 to 2034).

Market Dynamics

What driving forces influence the demand for Nickel Pellet?

“Growth in Stainless Steel Production & Rising Demand for Electric Vehicles is Driving Demand for Nickel Pellets Significantly”

Nickel primarily goes to stainless steel manufacturing for improving corrosion resistance and strength in the steel and gives more durability. Due to these excellent properties, stainless steel finds wide applications in construction, the automobile sector, food processing, and medical devices. But this demand for stainless steel is growing with global industrialization, urbanization, and increasing investment in infrastructure, therefore feeding the demand for nickel pellets.

With its positioning as the largest producer and consumer of stainless steel, China has always been a vital market for nickel pellets. Companies such as Jinchuan Group and Huayou New Energy Technology [Quzhou] Co., Ltd. have played critical roles in the supply of nickel products to the flowering stainless steel industry in China. Similarly, the demand for nickel pellets by Vale SA and Nornickel has been driven by European stainless steel producers such as Outokumpu.

Apart from that, demand for electric vehicles is another factor in stainless steel production. Manufacturing an EV involves the use of stainless steel on account of its strength and resistant properties against corrosion, which are important for car parts. Additionally, producers of some nickel pellets include Glencore and BHP Group, Nickel West. Production capacity is currently being expanded by these companies to meet the market's growing demand, underlining how important nickel pellets have become in driving the growth of stainless steel production.

“Technological Advancements in Nickel Production”

Technological advancement within nickel production has improved efficiency, sustainability, and overall quality in the production of pellets of nickel. Companies also have tried various innovative technologies that could make extraction, refining, and pelletizing processes smoother, owing to the demand for nickel, especially from stainless steel production and EV batteries. The High Pressure Acid Leach is one important development, allowing extraction from abundant laterite ores that were difficult to process in the past. Companies using this technology include Sherritt International Corporation and Ambatovy.

These companies use such technology to attain nickel in a more adequate manner from low-grade ores, making it less wasteful apart from maximizing output. It is now an essential step in countries with sizeable laterite deposits, such as Indonesia and the Philippines, which drive production and secure nickel supply to world markets.

Besides, refining and technological advances within the electro refining and electro winning processes have improved the quality and purity of nickel pellets. Advanced technologies in refining were adopted by companies like Vale SA and Nornickel to produce nickel of higher purities essential in certain applications that include battery manufacture and stainless steel of high grade.

This has been a factor of improvement in relation to the consistency and reliability within the quality of the nickel pellets to meet the stern demands which industries of high performance demand for materials within the manufacturing process. The companies also work on new methods of recycling nickel from products at the end of their life, such as EV batteries and stainless steel, further moving toward the circular economy.

What is the primary constraint faced by the market competitors for Nickel Pellet?

“Environmental Concerns Regarding Nickel Mining”

The current and vastly increased demand for nickel which is a vital component in stainless steel and electric vehicle batteries-boosts the demand for much greater extraction from laterite ores. No doubt that increasing demand is related to intensive mining practices, which may cause serious environmental degradations, such as heavy deforestation, soil erosion, and even pollution. At the same time, ecological groups are trying to push through with much tighter rules and regulations in order to preserve our natural environment and ecology in their efforts at balancing development with the health of our planet.

Nickel mining contributes to a large amount of carbon emitted into the atmosphere. All these processes, such as High-Pressure Acid Leach, which is very commonly used for laterite ores, demand great amounts of energy. This in turn gives rise to large amounts of greenhouse gas emission, which are particularly injurious to the atmosphere.

Due to such environmental hazards, this matter has raised several eyebrows among both the general people and policymakers, especially in those countries like Indonesia which depend highly on nickel production, where mining activities have come under scrutiny with increasing criticism from various groups regarding its impact on the environment.

Toxic tailings, produced by mining, often end up in the local water system, which in turn inflicts further damage on ecosystems and communities dependent on such a water system. The Philippines is faced with an increasingly pressing environmental crisis, prompting it to adopt stricter policies regarding nickel mining as a means of reducing its hazardous impact on the environment

Deforestation, specifically in tropical areas with huge deposits of nickel, is outstanding among other concerns that need awareness and attention. It is really harmful to local ecosystems and potentially to biodiversity as well. This has consequently elicited widespread organized opposition from environmental organizations and advocacy groups of all kinds.

Glencore and BHP Group's Nickel West have been investing multi-millions in friendly technologies to the environment, developing carbon capture methods, and alternative renewable energies. Most of these friendly-to-the-environment propositions are intensive in terms of capital investment, and hence should be expected to somewhat dampen short-term growth prospects of the companies engaging in them.

Country-wise Insights

Country-wise Forecast CAGRs for the Nickel Pellet Market

Country	CAGR
China	5.9%
Canada	6.0%
U.S.	5.6%
India	6.2%

Which Countries expect to have a Rise in Demand for Nickel Pellet?

“China Is Leading the Nickel Pellet Market due to its High Stainless Steel and Electric Vehicle Battery Production"

The fact that it is leading in both stainless steel production and in the manufacture of EV batteries places the country at the top of the global nickel pellet market. Being the largest global stainless steel producer, with over 50% of the world's output, China heavily relies on nickel as an input to this industry.

Nickel is a very important raw material in the manufacture of austenitic stainless steel, one of the forms with high resistance to corrosion and common applications in building construction, manufacturing, and infrastructure. Chinese big producers of stainless steel include Tsingshan Holding Group and Baosteel, which use high-purity nickel pellets for the quality and strength of their steel products.

In 2022, more than 30 million metric tons of stainless steel were produced in China, which indicates very high demand for nickel. This demand is constantly on the rise as China invests in multi-million-dollar projects related to infrastructure and industrial development. Besides this, China is considered one of the leading countries in manufacturing electric vehicles, which may be considered another reason for nickel's high demand in batteries.

Other than that, nickel also is a very important element in the technology of lithium-ion batteries, especially in nickel-cobalt-manganese batteries, which boast a higher energy density and result in a higher range for EVs. Key Chinese EV players like BYD and NIO, alongside giant battery maker CATL-or Contemporary Amperex Technology Co. Ltd.-, rely very heavily on nickel to manufacture high-performance cathodes in a battery.

With the government's incentives and environmental policies, the aggressive push for electrification had made China account for almost 60% of global EV sales by 2023. In a continued upward shift to clean energy and electric transportation, China's need for nickel will keep going up.

Putting both stainless steel and EV battery production together, China remains a key player in the nickel pellet market. Demand for nickel will be sustained for at least the foreseeable future as the country continues to lead in industrial development and the clean energy transition.

China market is estimated to have a value of US$ 281.0 million by 2024, with a market share of 37.2% in Asia Pacific.

“Rapid Growth in EV Industry is Gaining Attraction for Nickel Pellet Market in U.S.”

With the country moving into more environmentally friendly energy sources and working its way toward achieving lower carbon emissions, there has been a phenomenal rise in the volume of electric vehicle production, with a strong consequent market for nickel emerging.

Nickel is a key raw material of lithium-ion batteries, especially in the nickel-rich chemistries such as NCM and NCA. These variants are believed to possess high energy density for increasing the driving range, which is one of the prime factors for consumer acceptance of EVs.

Major automobile companies like Tesla, Ford, and General Motors are investing heavily in the manufacture of EVs to meet the increasing demand by consumers and to comply with numerous strict government regulations that aim at promoting electrification.

For instance, Ford pledges that it will spend over $50 billion in developing electric vehicles by the end of 2026, while GM aims to be a fully electric carmaker by 2035. This transition reflects not only the corporate vision of these companies toward sustainability but also an increment in demand for materials such as nickel, basically indispensable in high-performance batteries.

The incentives and policies of the U.S. government toward electric vehicle adoption, like tax credits and infrastructure development for charging stations, tend to spur the EV market. This, in turn, has a positive cascading effect on nickel pellet demand, since manufacturers seek dependable and sustainable sources of nickel for batteries within their electric vehicles.

By 2034, the market for U.S. Nickel Pellet is projected to be worth US$ 335.1 million from US$ 194.3 million in 2024.

Category-wise Insights

“Standard (99.98%) Purity Nickel Pellets are dominating the Market with Highest Market Share”

The standard purity of 99.98% Nickel Pellets dominates the market segment share due to their wide, varied usage and excellent quality. These pellets contain 99.98% nickel and are mainly utilized in stainless steel production, electroplating, and battery manufacturing, especially for electric vehicles (EVs). It contain minimal contamination; hence, it is perfect for those industries that require consistency in performance and quality in outputs.

The stainless steel industry is one of the largest consumers of high-purity nickel pellets, and they are indispensable in the formulation of corrosion-resistant alloys. It is nickel that enhances strength and toughness in steel, making it useful even in very aggressive environments. The increasing demand for stainless steel in various sectors, such as construction, automotive, and infrastructure, has been one of the major reasons contributing to the leading position of 99.98% purity nickel pellets.

Another major use of these pellets, besides stainless steel production, is in electroplating. The rich demand for 99.98% purity nickel pellets has been further enriched by the growing demand for EVs. In the future, it is expected that 99.98% purity nickel pellets will dominate the industries in large chunks since industries are moving more toward value addition to high-quality and sustainable materials meeting unforgiving performance standards. This versatility and key material across numerous industries will keep them vital in the global nickel market.

According to projections, the standard (99.98%) purity nickel pellets are holding the market share of 63.0% in global Nickel Pellet market and will reach to US$ 2,145.0 million value in 2034.

“High Demand Of Stainless Steel in Various Industries Leads to High Utilization of Nickel Pellets in This Category”

As many industries have high demands for stainless steel, there has been a high consumption of nickel pellets in recent times, especially in the making of corrosion-resistant and durable alloys. Nickel becomes an inseparable ingredient in the process of manufacturing stainless steel because, upon mixing it with this metal, it enhances the strength, durability, and corrosion-resistant properties, thus making it very vital in the construction, automotive, infrastructure, and industrial machinery sectors.

Stainless steel is widely used in the construction industry in applications that require extreme environmental conditions, like very bad weather and corrosive environments. Benefits such as longevity and low maintenance of stainless steels make demands for nickel-infused alloys high in the building, bridge, and other structural projects. The need for stainless steel, will keep on rising due to the ever-growing trend of urbanization and infrastructure development in the majority of emerging countries.

This will increase the consumption of nickel pellets. The use of stainless steel is also significantly influenced by the automotive sector. Applications related to automobile production include the usage of stainless steel in body parts that require strength and resistance to corrosion, such as exhaust systems, fuel tanks, and structure-based body parts. Increasingly, the demand for nickel is squeezed by the rise of EVs, which pinpoint light and durable materials for efficiency.

The same steel finds wide application in heavy machinery and equipment since these many times require resistance to heavy wear and tear, besides exposure to corrosive substances. The strength and hygiene standards it offers find application in food processing, the chemicals industry, and oil and gas industries.

In 2024, the global nickel pellet market in stainless steel segment is expected to generate a net worth of US$ 944.0 million and will increase at the rate of 5.8% over the forecast period 2024-2034.

Competitive Landscape

The prominent players in nickel pellet market are Vale SA, Nornickel, Jinchuan Group, Glencore, Sherritt International Corporation, BHP Group (Nickel West), Sumitomo Metal Mining Co., Ltd., Huayou New Energy Technology (Quzhou) Co., Ltd., CNGR Advanced Material, Lundin Mining Corporation, Anglo American, Eramet, Ambatovy, MM Ceramics & Ferro Alloys, and Kurt J. Lesker Company, among others.

• In July 2020, Vale expanded its nickel processing capacity in Canada to meet the rising demand for battery-grade nickel.
• In December 2021, Sumitomo Metal Mining Co. (SMM) received approval to expand its nickel refining operations in Japan, aimed at increasing high-purity output.
• In December 2022, Vale signed a long-term supply agreement with General Motors to provide nickel for its Ultium battery platform.
• In March 2023, Nornickel collaborated with Ford to explore supply chain options for high-purity nickel for EV production.

Fact.MR has provided detailed information about the key manufacturers of nickel pellet positioned across regions, sales growth, production capacity, and speculative technological expansion, in the recently published report.

Segmentation of Nickel Pellet Market

• By Purity :

  • High Purity (>99.98%)
  • Standard (99.98%)
  • Low Purity (<99.98%)

• By Application :

  • Stainless Steel
  • Nickel Alloys
  • Electroplating
  • Batteries
  • Powder Metallurgy
  • Catalyst
  • Magnets
  • Others

• By End-Use :

  • Aerospace & Defense
  • Marine
  • Automotive
  • Oil & Gas
  • Chemical
  • Energy
  • Consumer Goods
  • Others

• By Region :

  • North America
  • Latin America
  • Europe
  • Asia Pacific
  • Middle East & Africa