Indonesia’s Nickel Production Cuts

As the Indonesian Ministry of Energy and Mineral Resources announced this year, the country’s nickel ore production is to be reduced from approximately 330 million tons in 2025 to 250 to 260 million tons in 2026. From May to December, the price of nickel fluctuated around the $15,000 per ton mark. Then the price of the metal shot up. This was attributed to increased investor interest in China, as nickel is used in batteries and stainless steel. Although the nickel market is oversupplied, the price rose along with the increasing risks in Indonesia, the leading nickel-producing country.

Furthermore, it would not be surprising if nickel were to shift from a state of oversupply to a phase of relative scarcity. This is because nickel is a critical raw material (in the EU). High-purity nickel also comes mostly from Russia, which does not necessarily ensure a secure supply. And nickel is not only important for stainless steel and batteries, but also for the defense industry, aerospace, shipping, and the electronics sector. Nickel is a metal that is significant for the energy transition and also for the production of green hydrogen.

Not only nickel, but other industrial metals also saw price increases by the end of 2025. Indonesia appears to be striving to prop up nickel prices and is therefore restricting supply. Mining permits and production volumes are determined by the Indonesian authorities. Investors should therefore not overlook critical raw materials such as nickel and the associated companies.

Aurania Resources – https://www.commodity-tv.com/ondemand/companies/profil/aurania-resources-ltd/ – focuses on precious metals and critical energy commodities in Europe, specifically in Italy (nickel, cobalt, iron, copper, and chromium) and France. There, the company has also added three new exploration licenses (gold, polymetallic metals) through a subsidiary. The nickel-cobalt project in northern Italy is impressing with the latest drill results, which show significant nickel, cobalt, and copper values.

Canada Nickel Company – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ – holds nickel and cobalt reserves in its Crawford project in Ontario (ranked second in the Fraser ranking). With the approval of this project, the company has achieved a significant milestone in terms of environmental sustainability. According to the Canadian government, this is a project of strategic importance. The company has published very strong mineral resource estimates for eight of its nine properties. Additionally, the company has filed NI 43-101 reports for two nickel sulfide projects.

Current company information and press releases from Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -) and Aurania Resources (- https://www.resource-capital.ch/en/companies/aurania-resources-ltd/ -).

Further information is also available in our new Battery Metals Report at the following link: https://www.resource-capital.ch/en/reports/

Sources: Canada Nickel Company, Aurania Resources,

https://www.edelmetalle.de/nickelpreis;

https://inv3st.de/kommentare/nickel-als-ruestungsmetall-knapper-als-gedacht-lockheed-martin-glencore-power-metallic-mines;

https://www.resource-capital.ch/en/reports/

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