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News  ›  Benzinga

Nickel Is Hated Enough To Be Loved

Benzinga Logo Benzinga By Stjepan Kalinic
Nickel Is Hated Enough To Be Loved

Nickel prices have rallied 5.5% recently after a brutal two-year downturn driven by oversupply from Indonesian production and weakening EV demand as cheaper LFP batteries gain market share. While the sector faces structural risks including Indonesian market concentration and technological disruption, patient investors may find a contrarian opportunity as supply-demand dynamics could rebalance in the late 2020s, particularly as high-performance EVs continue relying on nickel-rich battery chemistries.

Insights
BHP   negative

BHP suspended its Nickel West division in 2024 due to inability to compete with Indonesian low-cost producers in an oversupplied market, indicating operational challenges and reduced nickel exposure.