Significant global industry trends mean that the demand for essential minerals is reaching unprecedented levels. Nickel, a fundamental component across diverse sectors, is experiencing a remarkable surge in demand, primarily propelled by the exponential growth of clean energy technologies and the electric vehicle (EV) revolution. This surge has been highlighted in the recent findings of the IEA’s (International Energy Agency) Critical Minerals Data Explorer report, shedding light on the pivotal role of nickel and its implications for Australia’s mining industry. Nimy Resources, stands poised to play a significant role in meeting this escalating demand for nickel.
The global demand for nickel: insights from the IEA Report
The IEA’s latest report provides a comprehensive overview, highlighting a surge in demand for essential minerals, and emphasising the significant rise in the importance of nickel. Within the dynamic landscape of shifting industrial needs, nickel stands as a cornerstone mineral, witnessing a substantial escalation in demand that echoes the rapid evolution of clean energy technologies and pivotal industries worldwide.
Electric vehicle (EV) sales witnessed a staggering ascent, soaring by an impressive 60% in 2022 alone, surpassing a monumental milestone of 10 million units. This massive surge in EV adoption, coupled with the rapid expansion of energy storage systems that doubled their capacity additions, distinctly underscores the insatiable hunger for nickel. Notably, as solar photovoltaic (PV) installations continue their meteoric ascent, breaking previous records with steady momentum, the demand for nickel, an indispensable component in these clean energy applications, surges in parallel.
Amidst this paradigm shift towards sustainable energy, the energy sector itself has emerged as the primary catalyst propelling the monumental surge in demand for crucial minerals. From 2017 to 2022, the overall demand for nickel experienced a remarkable upswing, soaring by an impressive 40%. This significant surge parallels the tripling of demand for lithium and a remarkable 70% surge in cobalt demand within the same period, firmly establishing nickel as a linchpin in the critical minerals market.
The pivotal role of nickel in clean energy applications becomes vividly apparent, with its share in total demand rising from a mere 6% to a substantial 16% by 2022. This rise signifies a fundamental shift, highlighting nickel’s burgeoning importance in facilitating the transition towards cleaner, sustainable energy solutions globally.
“Its multifaceted utility across various industries, from powering batteries to enhancing the durability of aerospace components, reinforces its status as an indispensable mineral poised to shape the future of technology and sustainability,”
says Simon Lill, Chairman at Nimy Resources.
Economic implications and policy responses
The doubling in market size for energy transition minerals, reaching USD 320 billion in 2022, reflects their newfound prominence in the mining and metals industry. “This growth stands in stark contrast to bulk materials like zinc and lead, opening doors for revenue opportunities, job creation, and economic diversification,” says Lill.
Globally, there’s a growing realisation of the necessity for policy interventions to ensure sustainable and adequate mineral supplies. Initiatives such as the European Union’s Critical Raw Materials Act and Australia’s Critical Minerals Strategy aim to address this challenge, impacting trade and investment across mineral-rich nations.
Australia’s strategic position in the nickel market
Australia stands at the forefront of meeting the escalating demand for nickel, leveraging its robust Critical Minerals Strategy to cater to the surging global appetite for this essential mineral.
Lill advises, “Australia’s contribution to the global nickel supply chain is substantial, accentuated by amplified investments and explorations dedicated to nickel mining.”
The IEA report highlights Australia’s indispensable role in the global critical minerals landscape, and our pivotal contribution to fostering growth in the sector. The surge in capital investment not only solidifies Australia’s position, but also underscores its commitment to meeting the evolving demands of the global nickel market.
As the world navigates towards a sustainable future, responsible mining practices and ethical sourcing will play an increasingly pivotal role. Within that, Australia stands as a key player in the provision of essential nickel. “Nimy Resources stands ready to contribute, paving the way for a sustainable and responsible mineral supply chain, and meeting the demands of a rapidly evolving global economy, “concludes Lill.
Nimy Resources’ commitment and role
Amidst the surge in demand for nickel, Nimy Resources has a commitment to ethical and sustainable practices in developing low-footprint critical mineral projects resonating with the global shift towards responsible mineral sourcing. Nimy Resources is poised to contribute ethically sourced nickel to meet the demands of clean energy applications, aligning with the growing emphasis on environmental integrity.