The Making of Nickel
One metal, two unrelated rocks

The Making of Nickel

Most metals come from an ore you can concentrate first — crush the rock, separate the valuable mineral, and only then apply heat to the small fraction that matters. Most of the world's nickel doesn't work that way. It sits dissolved inside the rock itself, with nothing to separate, so the whole tonnage has to be melted or dissolved to get it out.

Metal Transportation Building Two ores, no shared process

You almost certainly handled nickel today without noticing it was there.

Cutlery Cutlery
Coins Coins
EV batteries EV batteries
Jet turbines Jet turbines
Kitchen sinks Sinks
Guitar strings Guitar strings
The journey

Rock to metal — and where the road forks

Every route runs through the same four stages. What separates them is stage two: whether the ore can be concentrated before the heat goes in, or whether it can't.

Tap a stage to explore
The four stages of nickel production 1 · Mine the ore 2 · Prepare 3 · Drive it out 4 · Refine
What it's made of

Two ores that share nothing but an element

The idea

In sulphide ore, nickel forms a mineral of its own — so you can pick it out and throw the rest away. In laterite, it doesn't. There is no nickel grain to find, so the whole rock has to be processed.

Nickel is not mined as nickel. It arrives locked inside one of two rocks that formed in completely different ways, in completely different climates, and the choice between them decides every step that follows.

Laterite — the weathered rock

Tropical rain spends a million years dissolving magnesium-rich bedrock and leaving behind a soft, iron-stained layer. The nickel it carries is scattered atom by atom through iron and magnesium minerals — never crystallised into anything you could pick out.

Sulphide — the buried crystal

Found deeper and in colder regions, sulphide ore contains discrete grains of nickel sulphide. Copper, cobalt, platinum and palladium usually ride along, and together they can be worth more than the nickel itself.

That difference sounds academic until you try to process it. A sulphide mine can throw away most of its rock before spending a single unit of energy on heat — the valuable grains float, the waste sinks. A laterite mine cannot, because there is no separate nickel grain to float. Whatever comes out of the ground goes into the furnace or the acid, nickel and worthless rock alike. Everything expensive about making nickel follows from that one fact.

Laterite is split further by depth. The upper layer, limonite, is low in nickel but rich in iron and usually carries cobalt as a second prize. The layer beneath, saprolite, is richer in nickel but has little else worth recovering. Limonite is generally dissolved in acid; saprolite is generally smelted. The rock chose the route before anyone reached the site.

Coal and coke

The furnace needs something to pull oxygen away from nickel and iron oxides. Carbon does it, which is why laterite smelting burns fossil fuel both as heat and as a chemical ingredient.

Sulphuric acid

The alternative to heat is chemistry: acid dissolves laterite outright. Made on site where possible, which keeps the process cleaner. See how sulphuric acid is produced.

Limestone

Neutralises leftover acid after leaching and adjusts slag chemistry in the furnace. See how limestone and lime are made.

Electricity

The real raw material of laterite smelting. An electric furnace can draw up to 40 MWh per tonne of nickel — more than a typical UK household uses in a decade (Nickel Institute, 2024).

How it's made

Melt it, dissolve it, or float it first

The idea

Three routes, one question: how do you separate a metal from rock it was never separate from? Heat, acid, or — if the ore allows — bubbles.

Laterite offers two answers and sulphide offers a third. Each is a different trade: energy against residue, capital against reliability, speed against purity.

Tap any step to explore
Three routes from ore to product From laterite — the weathered tropical rock Saprolite the deeper layer Dry & reduce rotary kiln, ~900 °C Electric furnace ~1,500 °C Ferronickel iron-nickel alloy Limonite nickel + cobalt Acid leach ~250 °C, pressurised Neutralise & wash limestone, 7 stages MHP or MSP mixed precipitates From sulphide — the buried crystal Sulphide ore nickel in grains Froth flotation bubbles lift the ore Smelt & convert burns its own sulphur Matte ~75% valuable metal

Yellow marks the step where the energy goes in. Laterite splits by depth — the deeper saprolite is smelted, the shallower limonite is leached. Only the sulphide route concentrates the ore before heating it.

Continues elsewhere The Making of Iron and Steel Most nickel never becomes pure metal. It arrives at the steelworks as ferronickel and goes straight into the furnace — the stainless story starts here.
What comes out

Four products, and only one is pure nickel

The idea

Most nickel never passes through a refinery at all. It leaves the furnace as an iron-nickel alloy and goes straight into stainless steel — pure metal is the exception, not the rule.

The industry sorts its output by what it can still be turned into. Anything pure enough to dissolve into battery chemicals is Class 1. Everything else is Class 2 — perfectly good for steel, useless for a battery.

Class 1

Refined nickel

Cathode, briquette or powder above 99.8% nickel. Pure enough to dissolve into battery chemicals or alloy into aerospace superalloys.

Class 2

Ferronickel and nickel pig iron

An iron-nickel alloy straight from the furnace. Never refined to pure metal because it never needs to be — stainless steel wants the iron anyway.

Intermediate

MHP and MSP

Mixed hydroxide precipitate, roughly 40% nickel and cobalt; mixed sulphide precipitate, around 50–55%. Half-finished products shipped onwards for refining.

Chemical

Nickel sulphate

What a battery factory actually buys. Crystallised from refined metal or from MHP and MSP, overwhelmingly in China.

The line between the two classes used to be a wall. It isn't any more: with battery demand climbing, producers revived an old trick of converting ferronickel and nickel pig iron into matte, which can be refined to Class 1. It costs energy to undo work already done, but it lets a stainless-steel supply chain sell into the battery market — a fair sign of how sharply demand has shifted.

By the numbers

A big industry, and a remarkably concentrated one

Nickel statistics are softer than they look. Most current-year figures are estimates, authorities disagree on the totals, and the most-quoted number of all — the laterite share — usually turns out to describe something other than production.

~3.9 Mt
World mine production, 2025 (USGS)
estimate
~2.6 Mt
Of that mined in Indonesia (USGS)
estimate
>140 Mt
Reserves still in the ground (USGS)
~65%
Of primary nickel that goes into stainless steel (INSG, 2023)

On the reserves figure, the greater-than sign is the USGS's own. It publishes world nickel reserves as more than 140 million tonnes because one line of its own table — production outside the named countries — is itself unbounded. Identified resources are a separate and much larger number, above 350 million tonnes, of which the USGS puts 54% in laterite deposits and 35% in magmatic sulphide.

That resources split is worth pausing on, because it is routinely quoted as though it described production. It doesn't. How much nickel is made from each ore type is a genuinely uncertain figure: published estimates range from roughly 30% laterite in studies using 2010-era data, to 69% laterite for 2020, and no authority publishes a clean current split. What is not in doubt is the direction — Indonesian laterite output has grown roughly sixteen-fold since 2015 (IEA), so laterite's share of production today is higher than any of those figures.

World mine production by country, 2025 — thousand tonnes of nickel. Every figure here is a USGS estimate; only the 2024 column of that table is reported data.
Indonesialaterite
2,600 kt · ~two-thirds
Philippineslaterite
270
Russiasulphide
200
Canadasulphide
140
New Caledonialaterite
140
Chinasulphide
120
Brazilboth ore types
70
Australiaboth ore types
45
All other countriesmixed
290

Bars share a common scale, with Indonesia filling the track. Note the bottom row: everything outside the eight named countries still adds up to more nickel than any single one of them except Indonesia. Australia's 45 kt is down about 54% on 2024 and the Philippines about 24%, after low prices pushed mines into care and maintenance. Ore-type labels follow the IEA's regional attribution and are indicative, not exhaustive — several countries mine both.

The concentration is real, and it is recent: the top three producing countries held just over 50% of the market in 2015 and close to 80% by 2024 (IEA). But the country that mines the ore is not the country that turns it into battery chemicals, and that gap matters more than either figure alone.

Nickel product forms: volume, producing country and the pathways between them Mined ore ~3.9 Mt Indonesia more than 60% SULPHIDE SMELTING CLASS 2 ALLOY · LATERITE SMELTING Ferronickel & NPI 1.85 Mt NPI, Indonesia + China combined INTERMEDIATE · LATERITE LEACHING MHP & MSP no reliable global figure Indonesia dominant converting refining INTERMEDIATE Matte ~74 kt Indonesia; also Russia, Canada refining refining CLASS 1 METAL Refined nickel no country split published China, Russia, Japan, Canada CHEMICAL Nickel sulphate China 60% of chemical output; no tonnage published

All volumes are nickel content. Matte has two sources, which is why two arrows feed it. The classical route smelts sulphide concentrate straight to matte — that is the one shown in the process diagram above, and it is how Russia and Canada make theirs. The second is newer: Indonesian producers convert ferronickel and NPI into matte to serve the battery chain. Most ferronickel and NPI does not take that path — it goes directly into stainless steel and never becomes matte at all. Intermediates can in practice be refined to either final product; the chart shows the dominant path for each. The three gaps are deliberate — no source we would stand behind publishes global MHP/MSP output, Class 1 metal by country, or total nickel-chemical tonnage. Note that MHP and MSP are intermediates made mainly in Indonesia and are not part of China's 60% chemical share, which covers final chemicals such as sulphate. Class 2 material worldwide came to roughly 2.2 Mt in 2024 (Nornickel), against world primary nickel production of about 3.7 Mt (INSG). Matte is the softest figure here: the Indonesian ministry's ~74 kt sits oddly against Argus putting Indonesian NPI, MHP and matte combined at 2.15 Mt, almost certainly a difference of definition rather than of fact.

Two asymmetries are worth naming, because both cut against the usual framing. The first is that Indonesia's dominance does not stop at the mine — it is also the world's largest refiner of nickel, at around 1.5 Mt in 2024 and still growing (IEA). China's grip is on the narrower chemical step that turns intermediates into battery-grade sulphate. The second is that laterite has an Indonesia and sulphide has nothing like one: the IEA places higher-grade sulphide ore in Australia, Canada, China and Russia, with Finland and a new Zambian mine adding more, and the largest single sulphide producer, Russia, accounts for only around 5% of world output. One ore type is concentrated in a single country; the other is scattered across a dozen.

The challenge ahead

The metal that cleans up transport is dirty to make

The idea

The ore supplying most of the world's nickel is also the hardest to clean up — because melting or dissolving whole rock takes far more energy than concentrating a mineral first.

Nickel is central to electric vehicles and wind turbines, and it is an energy-hungry metal to make. Both laterite routes carry a real cost — but not the same one.

Smelting pays in energy

The furnace burns coal for heat and for chemistry, then draws enormous power on top. Most of it happens on a coal-heavy Indonesian grid, so the carbon follows the electricity.

Up to 40 MWh of electricity per tonne of nickel

Leaching pays in residue

Acid leaching emits comparatively little, especially where the acid is made on site. What it leaves is bulk — neutralised residue and gypsum needing permanent, engineered impoundment.

Low emissions, but residue that has to be stored for good

Neither problem has a clean fix waiting. Green hydrogen could replace the furnace's carbon, and laboratory work on hydrogen reduction of saprolite ore looks promising, but it is unlikely to reach the tropical regions where the smelters actually sit any time soon — which is why laterite smelters are considered among the harder industrial plants to decarbonise. Turning HPAL residue back into something useful, iron ore or aggregate, has been studied for years and is still defeated by the chemistry.

Mining leaves its own mark on top of that. Laterite sits at the surface in the tropics, so extraction means clearing land — and on islands with species found nowhere else, that risk is not abstract. Sulphide mines face the older hazard of acid mine drainage. Both are manageable with the practices the industry now expects of itself; neither disappears by being managed.

Recycling should be the release valve. Nickel is genuinely recyclable, and where scrap exists it does the job well. The catch is arithmetic — the metal is being consumed far faster than the products holding it wear out.

60%
Of U.S. apparent nickel consumption already comes from scrap (USGS, 2025)
2%
Share of global nickel demand met by secondary supply (IEA, 2024)
5%
Projected global secondary share by 2040 (IEA, STEPS)
projection

The U.S. figure counts scrap against domestic consumption; the global figures exclude direct-use scrap. They measure different things and shouldn't be read as a contradiction — together they say recycling is already substantial where the old metal is, and nowhere near enough to cover growth.

So fresh ore stays central, and the interesting question becomes where it comes from next. Pressure oxidative leaching of sulphide concentrates has one commercial installation and room to expand. Heap leaching of laterite, gentler than smelting or HPAL, has reached small-scale commercial operation in Brazil. And the seabed is estimated to hold some 4.5 billion tonnes of nickel in nodules and crusts (USGS, 2022 study) — a number large enough to reframe the entire supply question, and one that stays untouchable without an international regulatory framework that does not yet exist.