According to a Forbes report, the nickel business has become so lucrative that billionaire Kiki Barki, who built his fortune in coal mining, is now steering his Harum Energy toward nickel. Harum accelerated its nickel expansion this year through a series of strategic deals. Meanwhile, nickel prices ended 2024 below their 2023 close.
Harum Makes Major Plays Amid Low Nickel Prices
In January, Harum boosted its stake in Indonesian nickel smelter Westrong Metal Industry to nearly 81% at a cost of $215 million. By April, its subsidiary, Tanito Harum Nickel (THN), had acquired a 51% stake in Blue Sparking Energy for $206 million. While still under development, the refining facility aims to produce 67,000 tons of nickel annually by 2026.
Harum also partnered with Chinese metal tycoon Xiang Guangda’s Eternal Tsingshan Group back in September, with Tsingshan acquiring a 49% stake in Harum’s nickel units. According to a Nomura report, the collaboration with Tsingshan will not only enhance production but also open doors to future asset opportunities.
Get a competitive edge in with potential nickel supply chain disruptions. Learn game-changing nickel industry insights by opting into MetalMiner’s free weekly newsletter.
Nickel and EVs: Something’s Happening
In regions like North America, the nickel industry continues to grapple with a combination of weak demand and oversupply. Reports attribute this to anticipated high nickel prices driven by the expected boom in the EV market not panning out.
Another factor is that Chinese companies are currently developing batteries that do not rely on nickel. In fact, several Chinese firms are now touting these Lithium ferro-phosphate models as an alternative to nickel-based EV batteries.
The composition of LFP batteries is primarily iron phosphate combined with lithium, which grants them several notable advantages over their nickel-based competitors. One of the most significant benefits is their reduced environmental impact. As they utilize iron and phosphate, LFP batteries are reportedly less harmful to local ecosystems and communities.
Primarily produced by Chinese companies like CATL and BYD, LFP batteries are also around 20% cheaper than traditional lithium-ion batteries made with nickel. Some Indonesian car manufacturers are already using LFP batteries. In fact, these products represented a significant issue in the country’s recent election.
Not sure if MetalMiner can help you forecast prices for your specific metals? Check out our full metal catalog.
China’s Relationship with Indonesia Remains Strong
If the demand for LFP batteries continues to grow, Indonesia’s nickel miners could face some significant challenges. For instance, nickel’s importance in the global EV market was a key topic during a recent meeting between China’s President Xi Jinping and Indonesia’s President Prabowo Subianto.
At the Indonesia-China Business Forum in Beijing, the two leaders finalized $10 billion in business agreements focusing on strategic economic growth in sectors such as food, clean technology and biotechnology. They also discussed critical areas like water conservation, maritime resources and nickel mining.
In a joint statement, both countries emphasized plans to strengthen cooperation in new energy vehicles, lithium batteries and photovoltaic projects, as well as several other sectors. They likewise reaffirmed their commitment to advancing the global energy transition, securing access to mineral resources and stabilizing supply chains.
Impress your executive team by accurately reporting the impact of nickel supply chain disruptions on your company’s earnings with the Monthly Metals Outlook report. Get a free sample.
