Skip to content

Resources · Issue 02

Indonesia mines two-thirds of the world’s nickel

USGS 2025e: 2.6 million tonnes of 3.9 million. The Philippines is second, at 270,000. Australia halved output and parked mines. The battery metal is a one-country ore.

ResourcesUpdated 2026-09-047 min read
  1. 01Indonesia67% of world, 2025e2,600
  2. 02PhilippinesUSGS 2025e270
  3. 03RussiaUSGS 2025e200
  4. 04CanadaUSGS 2025e140
  5. 05New CaledoniaUSGS 2025e140
  6. 06Chinamine, not refined120
  7. 07BrazilUSGS 2025e70
  8. 08Australiawas 98 kt in 202445
Indonesia’s share of mined nickel, 2025e
67%
Indonesia, 2025e (USGS)
2.6 Mt
World mine, 2025e
3.9 Mt
Australia, 2025e — care and maintenance
−54%

The ore moved. The price did what surplus prices do.

USGS, Mineral Commodity Summaries 2026: world nickel mine output 3.9 million tonnes in 2025, up 5%. Indonesia 2.6 million, up 13% as new operations kept ramping. That is 67% of the world’s ore, on the agency’s own tonnes. In 2024 it was 2.31 of 3.71 — already 62%. Goldman, in February 2026, called it ‘more than 60%’ and then watched Jakarta talk about permits and quotas. The Philippines is a distant second at 270,000 tonnes. Russia 200,000. Canada and New Caledonia 140,000 each. Australia 45,000, down 54% after mines went to care and maintenance on the price. The LME cash annual average fell another 11% in 2025. This is the lithium rhyme with a worse concentration.

Indonesia is the mine and the refinery. That is the IEA’s sentence.

The existing module on this desk — China still refines the transition — still holds for graphite, rare earths, cobalt chemicals and lithium. Nickel is the exception the IEA now writes in italics. Global Critical Minerals Outlook 2026: Indonesia is the top refiner of nickel, and with China it accounted for more than three-quarters of refined-supply growth in 2023–25. In several markets, including nickel, virtually all the new tonnes came from the dominant supplier. A Class-1 sulphate plant in the West is a policy. A laterite HPAL line in Sulawesi is a print. Pair with Lithium grew ninefold: the 2020s already did the supply homework. The 2026 tell is Jakarta discovering it can throttle.

The long view is a quota, not a shortage

Own Indonesian offtake that is already licensed, and the high-pressure acid-leach and stainless books that actually take the ore. Size a Western Class-1 project as optionality, not as 2026 tonnes. Do not own a 2022 nickel squeeze as if USGS had forecast it. What would change this page: a USGS table with Indonesia below 50%, or Australia back above 100,000 tonnes. 2025e is 67% and 45,000.

Investing lens

Horizon 5–12 years · Educational, not advice

Nickel is a one-country mine with a one-country refinery. The rent is in licensed Indonesian offtake and in chemistry that can take laterite. A 2022 squeeze is not a 2026 earning.

Where the map points

  • Licensed Indonesian HPAL and stainless offtake, political-risk sized
  • Battery chemistry that can take Class-2 / mixed-hydroxide, not only Class-1
  • A measured Western Class-1 sleeve as optionality
  • Avoid a ‘nickel shortage’ ETF that is 2010s sulphide

What can break it

  • Jakarta quotas that cut tonnes without raising the realised price
  • LFP and sodium-ion that eat nickel-intensive chemistries
  • A stainless recession that empties the ore book first

CHART does not recommend securities, funds or trades. Figures can be revised by their publishers. Do your own research and consider regulated advice before allocating capital.

Sources

Every headline number traces to a named publisher. Contextual sources inform the essay, not the key stat.

  1. 01PrimaryU.S. Geological Survey2026-02
    Mineral Commodity Summaries 2026 — Nickel

    Mine production, nickel content, 2025e: world 3.90 Mt; Indonesia 2.60; Philippines 0.270; Russia 0.200; Canada 0.140; New Caledonia 0.140; China 0.120; Brazil 0.070; Australia 0.045 (was 0.098 in 2024, −54%). 2024 world 3.71; Indonesia 2.31. LME cash annual average −11% in 2025. Indonesia +13% as new operations ramped.

  2. 02PrimaryInternational Energy Agency2026
    Global Critical Minerals Outlook 2026 — Executive summary

    Indonesia is the top nickel refiner. Indonesia (nickel) and China (other energy minerals) accounted for over three-quarters of refined-supply growth in 2023–25. In nickel, manganese and graphite, virtually all supply growth came from the dominant supplier. Average top-refiner share 72% in 2025 excluding rare earths, up from 70% in 2023.

  3. 03ContextualGoldman Sachs2026-02-18
    How Indonesia Drove a Rally in Nickel

    Indonesia ‘now accounts for more than 60% of global nickel mine supply.’ A slogan. The USGS table is 2.6 of 3.9 (67%). Used as context for the quota talk, not as the share on the wall.

101 graphics in this issue