Critical Minerals and Energy Intelligence

An OPEC for Nickel

I guess if you can’t buy them, convince them to join your cartel? Following not long after Canada told foreign nations to keep their hands off its critical minerals, Indonesia has sidled up and suggested that Canada help form a group of nickel-producing nations to coordinate their policies – basically an OPEC for nickel. To put things in context: Indonesia is the world’s top nickel producer, and while Canada is back in sixth place, together they pump out a whole lot of battery-grade metal.

The idea is that EV-manufacturing nations are calling the shots and reaping most of the rewards. If the nickel-producing countries work together, then they can add value at home, and make sure the profits are shared more fairly.

This isn’t the first time Indonesia has floated the idea but now the government looks like it’s entered the pitch stage. Not really a surprise. Indonesia has been pursuing an aggressive strategy for a while as it tries to cash in on its top tier nickel status. In 2020, they banned exports of raw nickel ore and successfully forced more investment into refining and manufacturing inside the country. Personally, with the geopolitical battle lines starting to become more clear around the globe, I don’t think a nickel OPEC is likely – at least not on the scale that Indonesia would like to see.

Anthony Milewski

Chairman, Nickel 28 Capital

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