Download Sample, Hybrid Vehicles and Clean Energy Drive Rising Demand for Nickel Hydroxide
The shift toward hybrid electric vehicles is significantly boosting the demand for nickel hydroxide, essential in producing Nickel-Metal Hydride batteries used in hybrid electric vehicles and some EV models. United States Energy Information Administration United States sales of hybrid, plug-in hybrid, and battery electric vehicles improved in Q2 2024 to 18.7% of total new light-duty vehicle sales from 17.8% in Q1 2024, estimates by Wards Intelligence. The International Energy Agency says that, though battery electric vehicles were sold less than PHEVs in the first quarter of 2023, year-over-year sales in China for the same product increased to 75%, while that of BEV was just 15%. Safe and cost-effective NiMH are nickel hydroxide alkaline batteries, representing a safe and cost-effective option, and their growth continues the trend of hybrid adoption while increasing demand for nickel hydroxide.
As global demand for nickel continues to rise, mining companies are ramping up production to support key industries, particularly battery manufacturing. The International Nickel Study Group stated that the world's primary nickel production totaled 3.356 million tonnes (Mt) in 2023 and is expected to increase further to 3.554 Mt in 2024. In line with the global primary nickel use market, the nickel hydroxide market is witnessing an uptrend. From 3.193 Mt in 2023 to 3.445 Mt in 2024, nickel hydroxide demand is on the rise due to battery-based technologies. Growth in the nickel hydroxide market is anticipated to sustain this trend owing to increasing demand for electric vehicles and renewable energy.
Those are burgeoning markets where an adequate raw material supply is needed to meet the fast growth in demand. Nickel hydroxide application in photocatalysis for hydrogen generation and reduction of CO2 is sending the nickel hydroxide market upward. In this direction, there is a shift toward cleaner sources of energy; materials in the nature of photocatalysts are emerging to be more efficient for that purpose. Co-catalysts containing nickel hydroxide are in great demand as they enhance photocatalytic reactions with much potential in renewable energy. This growing interest in sustainable technologies, with their application in energy storage as well as environmental applications, drives the market forward.
As global demand for nickel continues to rise, mining companies are ramping up production to support key industries, particularly battery manufacturing. The International Nickel Study Group stated that the world's primary nickel production totaled 3.356 million tonnes (Mt) in 2023 and is expected to increase further to 3.554 Mt in 2024. In line with the global primary nickel use market, the nickel hydroxide market is witnessing an uptrend. From 3.193 Mt in 2023 to 3.445 Mt in 2024, nickel hydroxide demand is on the rise due to battery-based technologies. Growth in the nickel hydroxide market is anticipated to sustain this trend owing to increasing demand for electric vehicles and renewable energy.
Those are burgeoning markets where an adequate raw material supply is needed to meet the fast growth in demand. Nickel hydroxide application in photocatalysis for hydrogen generation and reduction of CO2 is sending the nickel hydroxide market upward. In this direction, there is a shift toward cleaner sources of energy; materials in the nature of photocatalysts are emerging to be more efficient for that purpose. Co-catalysts containing nickel hydroxide are in great demand as they enhance photocatalytic reactions with much potential in renewable energy. This growing interest in sustainable technologies, with their application in energy storage as well as environmental applications, drives the market forward.
Nickel Hydroxide Market Poised to Benefit from Growing Renewable Energy Storage Demand
The nickel hydroxide market stands to benefit from the expanding demand for renewable energy. As solar and wind power gain traction, the need for efficient grid-level energy storage grows, and nickel hydroxide plays a key role in technologies like nickel-cobalt-manganese (NCM) batteries. This presents an opportunity for increased adoption in large-scale energy storage systems. Moreover, greater acceptance for home-based solar panels and storage systems would offer more opportunities to develop nickel hydroxide-based batteries. All these trends will be more directly related to the needs of the increasingly increasing demand for nickel hydroxide in sustainable energy initiatives.
The increasing focus on recycling and the circular economy presents a significant opportunity for nickel hydroxide producers. As battery recycling programs expand, the reliance on mined nickel can decrease, promoting a more sustainable lifecycle for nickel hydroxide in battery production. This shift toward recycling could boost market growth by aligning with eco-friendly practices. For example, Vermont has passed new legislation that from July 2024 will ban landfill disposal of both single-use and rechargeable batteries, so that all nickel-based have to be recycled correctly at collection centers. All such legislation would continue promoting demand for recycled nickel hydroxide, thereby bolstering the sustainability of the market in the longer term.
The increasing focus on recycling and the circular economy presents a significant opportunity for nickel hydroxide producers. As battery recycling programs expand, the reliance on mined nickel can decrease, promoting a more sustainable lifecycle for nickel hydroxide in battery production. This shift toward recycling could boost market growth by aligning with eco-friendly practices. For example, Vermont has passed new legislation that from July 2024 will ban landfill disposal of both single-use and rechargeable batteries, so that all nickel-based have to be recycled correctly at collection centers. All such legislation would continue promoting demand for recycled nickel hydroxide, thereby bolstering the sustainability of the market in the longer term.
Recent Trends in the Nickel Hydroxide Industry
- Rising demand for electric vehicle batteries drives nickel hydroxide market growth.
- Green energy and sustainability push nickel hydroxide market growth.
- Limited global supply of nickel impacts hydroxide market dynamics.
- Increased nickel recycling efforts support market stability and reduce costs.
- Stricter regulations on mining and production influence the market supply chain.
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Emerging Battery Technologies Pose Threat to Nickel Hydroxide Market Stability
The nickel hydroxide market faces a potential threat from its heavy reliance on the electric vehicle (EV) industry. As the EV sector approaches saturation or experiences slower-than-expected growth, the demand for nickel hydroxide may stagnate or even decline. Nickel hydroxide would become too reliant on the growth of the EV sector and subject to its vagaries because nickel hydroxide has limited alternative uses, primarily as a battery chemical. Advances in battery technology or recycling breakthroughs would diminish this reliance and depress demand for nickel hydroxide. Such dependence could create tremendous volatility for all interested parties going forward.
The nickel hydroxide market may face an increasing threat from other emerging technologies, such as solid-state batteries and sodium-ion batteries. Alternative energy storage solutions will only continue to accumulate enough market share to slowly diminish demand for nickel-based compounds. Potentially, the growing advantages of battery safety and efficiency, coupled with higher energy density, will continue to decrease the amount of nickel demanded in production. The sodium-ion batteries, based on more abundant, less costly materials than those for nickel hydroxide, are likely to be substituted in many applications. As these technologies advance, the reliance on traditional nickel compounds may wane, challenging the long-term stability of the nickel hydroxide market.
The nickel hydroxide market is increasingly vulnerable to environmental and social challenges tied to nickel mining and refining. As concerns over sustainability rise, stricter regulations on environmental practices could significantly impact the extraction process. For instance, a 2024 report by Climate Rights International highlighted the devastating effects of a massive nickel industrial complex in North Maluku, where mining operations are linked to deforestation, pollution, and greenhouse gas emissions. Such reports raise alarms about the long-term viability of nickel mining in certain regions, posing risks to both the supply of nickel hydroxide and the reputation of companies involved in its production.
The nickel hydroxide market may face an increasing threat from other emerging technologies, such as solid-state batteries and sodium-ion batteries. Alternative energy storage solutions will only continue to accumulate enough market share to slowly diminish demand for nickel-based compounds. Potentially, the growing advantages of battery safety and efficiency, coupled with higher energy density, will continue to decrease the amount of nickel demanded in production. The sodium-ion batteries, based on more abundant, less costly materials than those for nickel hydroxide, are likely to be substituted in many applications. As these technologies advance, the reliance on traditional nickel compounds may wane, challenging the long-term stability of the nickel hydroxide market.
The nickel hydroxide market is increasingly vulnerable to environmental and social challenges tied to nickel mining and refining. As concerns over sustainability rise, stricter regulations on environmental practices could significantly impact the extraction process. For instance, a 2024 report by Climate Rights International highlighted the devastating effects of a massive nickel industrial complex in North Maluku, where mining operations are linked to deforestation, pollution, and greenhouse gas emissions. Such reports raise alarms about the long-term viability of nickel mining in certain regions, posing risks to both the supply of nickel hydroxide and the reputation of companies involved in its production.
Strategic Collaborations & Partnerships Boost Nickel Hydroxide Market Growth
The partnerships and collaborations between the market players have a significant positive impact on the nickel hydroxide market, especially in regions like the United States and Europe, where demand for sustainable energy solutions is growing quickly. For instance, in November 2023, Trinitan Green Energy Metals (TGEM), Indonesia, and Battery Grade Materials (BGM), United States, formalized a collaboration through a Memorandum of Understanding (MoU), marking a pivotal moment in the development of a sustainable Class 1 Nickel supply chain. This partnership is particularly relevant to the growing Electric Vehicle (EV) market in the United States and Europe.
The joint venture focuses on two key phases, the establishment of a Research & Development Center of Excellence and the creation of a Class 1 Nickel downstream production facility, known as the JV Processing Facility. This facility will produce critical materials such as nickel Hydroxide, Nickel Sulphate, and high-purity Nickel Powder. These products will support a range of industries, including the United States EV battery supply chain, energy storage systems, electronic components, and specialized programs under the United States Department of Defense. This strategic collaboration is set to strengthen the global nickel hydroxide market, catering to the rising demand for materials in clean energy and defense sectors.
The companies are focusing on expanding their production capacity and exploring new applications in electric vehicles and energy storage. For example, in November 2023, Trafigura and Korea Zinc announced a joint investment of KRW 184.9 billion (USD 140 million) to build a new nickel refinery in South Korea. The refinery will process nickel matte and mixed hydroxide precipitate (MHP) to produce nickel sulfate, a key component in lithium-ion batteries. This investment highlights the growing importance of nickel hydroxide in the global battery supply chain. As demand for nickel-rich cathodes continues to rise, this move underscores the growing emphasis on scaling production capabilities and supporting the shift towards cleaner energy technologies.
In October 2023, Fastmarkets, a prominent price reporting agency, introduced new price benchmarks for nickel pig iron (NPI) and mixed hydroxide precipitate (MHP) from Indonesia, enhancing market transparency. This move aims to provide more reliable pricing for these key materials used in battery production, particularly for electric vehicles (EVs). By launching free-on-board prices for MHP, Fastmarkets addresses the growing demand for transparency in the nickel hydroxide market, supporting industries relying on these raw materials for energy storage and battery manufacturing.
The joint venture focuses on two key phases, the establishment of a Research & Development Center of Excellence and the creation of a Class 1 Nickel downstream production facility, known as the JV Processing Facility. This facility will produce critical materials such as nickel Hydroxide, Nickel Sulphate, and high-purity Nickel Powder. These products will support a range of industries, including the United States EV battery supply chain, energy storage systems, electronic components, and specialized programs under the United States Department of Defense. This strategic collaboration is set to strengthen the global nickel hydroxide market, catering to the rising demand for materials in clean energy and defense sectors.
The companies are focusing on expanding their production capacity and exploring new applications in electric vehicles and energy storage. For example, in November 2023, Trafigura and Korea Zinc announced a joint investment of KRW 184.9 billion (USD 140 million) to build a new nickel refinery in South Korea. The refinery will process nickel matte and mixed hydroxide precipitate (MHP) to produce nickel sulfate, a key component in lithium-ion batteries. This investment highlights the growing importance of nickel hydroxide in the global battery supply chain. As demand for nickel-rich cathodes continues to rise, this move underscores the growing emphasis on scaling production capabilities and supporting the shift towards cleaner energy technologies.
In October 2023, Fastmarkets, a prominent price reporting agency, introduced new price benchmarks for nickel pig iron (NPI) and mixed hydroxide precipitate (MHP) from Indonesia, enhancing market transparency. This move aims to provide more reliable pricing for these key materials used in battery production, particularly for electric vehicles (EVs). By launching free-on-board prices for MHP, Fastmarkets addresses the growing demand for transparency in the nickel hydroxide market, supporting industries relying on these raw materials for energy storage and battery manufacturing.
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Europe's EV Adoption and Battery Investments Boost Nickel Hydroxide Market Growth
The Asia-Pacific (APAC) region has emerged as the leading market for nickel hydroxide, driven by the growing demand for electric vehicle (EV) batteries. The market is dominated by China, as it has the top producer and consumer position of nickel hydroxide, the important material used in manufacturing lithium-ion batteries. The International Energy Agency also projects that by 2024, China is poised to corner 45 percent of the world's EV market share. Other APAC countries like Japan, South Korea, and India also continue to rapidly adopt EVs as well, thereby driving more demand for nickel hydroxide. Indonesia, amongst all, has emerged as a key player in the nickel supply chain. The country held 40.2% of global nickel production in 2023 and plans to expand its nickel processing capabilities going forward. This will place Indonesia in a position of having huge potential in its nickel reserves to be developed internally for its emerging internal EV industry, which will increase the supply of nickel hydroxide into the region. Besides the EV sector, nickel hydroxide is consumed in huge quantities in other sectors such as electroplating, catalysts, and raw material in other chemical precursors among others which further opens up the growth opportunity for the market across the APAC.
The nickel hydroxide market in Europe is rapidly expanding, driven by the region’s increasing focus on clean energy and electric vehicle (EV) adoption. The European Union's commitment to reducing carbon emissions has pushed the shift toward electric transport more swiftly; in such areas, Germany, France, and the UK are in the lead. Estimated that electric cars could likely corner 25 percent of the European market by 2024, the International Energy Agency also foresaw this trend. The prospect of such high sales of electric cars is itself directly driving demand for critical materials like nickel hydroxide, which is essential for the manufacture of batteries. Apart from that, countries in Europe are heavily investing in the development of battery production within their domain to get rid of the dependency on Asian suppliers to increase their resilience and a self-reliant supply chain for critical materials. With strong government incentives and an increasing focus on sustainable energy, Europe is set to become a key player in the global nickel hydroxide market. The combination of rising EV adoption and strategic investments in battery manufacturing ensures robust growth prospects for this sector in the coming years.
The nickel hydroxide market in Europe is rapidly expanding, driven by the region’s increasing focus on clean energy and electric vehicle (EV) adoption. The European Union's commitment to reducing carbon emissions has pushed the shift toward electric transport more swiftly; in such areas, Germany, France, and the UK are in the lead. Estimated that electric cars could likely corner 25 percent of the European market by 2024, the International Energy Agency also foresaw this trend. The prospect of such high sales of electric cars is itself directly driving demand for critical materials like nickel hydroxide, which is essential for the manufacture of batteries. Apart from that, countries in Europe are heavily investing in the development of battery production within their domain to get rid of the dependency on Asian suppliers to increase their resilience and a self-reliant supply chain for critical materials. With strong government incentives and an increasing focus on sustainable energy, Europe is set to become a key player in the global nickel hydroxide market. The combination of rising EV adoption and strategic investments in battery manufacturing ensures robust growth prospects for this sector in the coming years.
The report provides a detailed overview of the nickel hydroxide market insights in regions including North America, Latin America, Europe, Asia-Pacific, and the Middle East and Africa. The country-specific assessment for the nickel hydroxide market has been offered for all regional market shares, along with forecasts, market scope estimates, price point assessment, and impact analysis of prominent countries and regions. Throughout this market research report, Y-o-Y growth and CAGR estimates are also incorporated for every country and region, to provide a detailed view of the nickel hydroxide market. These Y-o-Y projections on regional and country-level markets brighten the political, economic, and business environment outlook, which is anticipated to have a substantial impact on the growth of the nickel hydroxide market. Some key countries and regions included in the nickel hydroxide market report are as follows:
| North America | United States, Canada |
| Latin America | Brazil, Mexico, Argentina, Colombia, Chile, Rest of Latin America |
| Europe | Germany, United Kingdom, France, Italy, Spain, Russia, Poland, Netherlands, Switzerland, Belgium, Sweden, Austria, Norway, Denmark, Finland, Ireland, Rest of Europe |
| Asia Pacific | China, India, Japan, South Korea, Australia & New Zealand, Indonesia, Singapore, Malaysia, Vietnam, Thailand, Rest of Asia Pacific |
| Middle East and Africa | GCC Countries, South Africa, Nigeria, Egypt, Morocco, Algeria, Israel, Iran, Kenya, Turkey, Rest of MEA |
Nickel Hydroxide Market Research Report Covers In-depth Analysis on:
- Nickel hydroxide market detailed segments and segment-wise market breakdown
- Nickel hydroxide market dynamics (Recent industry trends, drivers, restraints, growth potential, opportunities in nickel hydroxide industry)
- Current, historical, and forthcoming 10 years market valuation in terms of nickel hydroxide market size (US$ Mn), volume (Tons), share (%), Y-o-Y growth rate, CAGR (%) analysis
- Nickel hydroxide market demand analysis
- Nickel hydroxide market pricing analysis over the forecast period (by key segment and by region)
- Nickel hydroxide market regional insights with region-wise market breakdown
- Competitive analysis – key companies profiling including their market share, product offerings, and competitive strategies.
- Latest developments and innovations in the nickel hydroxide market
- Regulatory landscape by key regions and key countries
- Supply chain and value chain analysis in nickel hydroxide market
- Nickel hydroxide market sales and distribution strategies
- A comprehensive overview of the parent market
- A detailed viewpoint on nickel hydroxide market forecast by countries
- Mergers and acquisitions in the nickel hydroxide market
- Essential information to enhance market position
- Robust research methodology
- Frequently Asked Questions -
What are the major factors driving the demand for nickel hydroxide?
The increasing demand for electric vehicles, along with growing interest in renewable energy storage systems, is driving the demand for nickel hydroxide in battery manufacturing.
What are the key challenges faced by the nickel hydroxide market?
The key challenges include the volatility in nickel prices, supply chain disruptions, environmental concerns regarding extraction methods, and the need for advanced recycling technologies for sustainable production.
How is the nickel hydroxide market expected to evolve in the future?
The nickel hydroxide market is expected to grow with the rise of the electric vehicle industry, increasing battery production, and the global shift towards sustainable energy solutions and eco-friendly technologies.
