The demand for nickel in clean technologies is set to surge by 607% by 2040, driven by the growing use of nickel in electric vehicle batteries, renewable energy storage, and green hydrogen production. According to the International Energy Agency’s (IEA) report, global nickel demand is expected to increase to 3,381 kilotonnes (Kt) by 2040, up from 478 Kt in 2023.
The report highlights the growing significance of nickel in the transition to low-carbon technologies, with the majority of mined and refined nickel going towards manufacturing cathode material for lithium-ion batteries, improving the performance of lithium-ion batteries, and manufacturing high-performance alloys used in wind turbines and solar panels.
India, which relies heavily on imports, must ramp up domestic mining and refining to meet its net-zero target by 2070. The country’s increasing focus on decarbonization, with a target of achieving 65% of electric car sales by 2030, will further increase the demand for nickel.
Prashuk Jain, Chief Operating Officer of Vedanta Nico, notes that reducing India’s near-total import dependency on nickel is crucial for achieving its net-zero commitments. He argues that increasing domestic mining and refining capabilities will not only strengthen India’s industrial ecosystem but also secure a sustainable and resilient supply chain for the green economy of the future.
The report also expresses concern over the concentration of nickel mining and refining activities in a few countries, with Indonesia expected to produce over 50% of the world’s nickel by 2030. This highlights the importance of achieving self-sufficiency for India to achieve its decarbonization strategy.
The Indian government can play a key role in accelerating the growth of the sector by providing incentives, easy forest and environmental clearances, and a focus on public-private partnerships and research and development.