Indonesia plans to sharply cut nickel output this year

Indonesia is considering a sharp cut in nickel production from 272 million tons in 2024 to 150 million tons in 2025.Macquarie Group has warned that the decision to cut nickel production in Indonesia could reduce global supply by 35%, threatening the supply of the vital metal for electric vehicle batteries and potentially leading to a spike in nickel prices as Indonesia contributes more than 50% of nickel production globally, a decision that could have a significant impact on the international market.2024 Nickel prices have fallen for the second consecutive year, mainly due to increased nickel production in Indonesia and a decline in demand from battery producers and the stainless steel Traders and analysts are closely monitoring the potential impact on the nickel market of China's economic stimulus measures and future U.S. tariff policies. Indonesia, a major nickel producer, struggled to meet demand last year due to government restrictions, leading to an increase in nickel imports from other countries. Meanwhile, Chinese battery metal producers signed a cooperation agreement with Brazil's Vale Indonesia subsidiary to build a high-pressure pickled nickel processing facility in Central Sulawesi for electric vehicle battery production, underscoring the importance of Indonesia's mining sector in the global supply of the key metal.