Australia's opportunities and challenges in Nickel
REPORT

Australia's opportunities and challenges in Nickel

clock

08.02.2024 - 12:59

ClimateEnergy transition

Our new report ‘A Critical Juncture’, commissioned by the Chamber of Minerals and Energy of Western Australia, explores Australia's opportunities and challenges in nickel. Our report finds we have inherent advantages as Australia is well placed to capture growing opportunities in nickel with a 9% annual growth forecast. Australia holds 18% of global reserves, which we can refine with significantly less emissions than our competitors. However, growing supply from cheaper Indonesian nickel producers that are more cost-competitive has led to lower prices, which has already seen the closure of a third of Australia’s nickel production. This puts approximately 10,000 jobs, $1.8 billion of economic activity, and Australia’s future battery industry at risk.

Australian nickel has significant opportunities, however strong headwinds are placing its future viability at risk.

portableText image


The energy transition offers significant opportunities for Western Australia’s resources industry and minerals exports such as nickel.

As the world accelerates efforts aimed at electrification and moves away from fossil fuels, Western Australia and Australia will need to capture growing opportunities in battery minerals, such as nickel, lithium, and cobalt. Battery demand is expected to increase by 24 per cent annually over the coming decade, driving the need for battery minerals.

Australia, and Western Australia in particular, is positioned to play an important role in the global battery value chain. Australia holds 18 per cent of global nickel reserves while also having (1) strong ESG practices and (2) global policy tailwinds.

portableText image

However, the Australian nickel industry is facing strong headwinds, and its future viability is at risk.

Recent drops in nickel price (down 51 per cent since 2022) and growing cost pressures in Australia have led to five Western Australian nickel producers, constituting a third of annual domestic production, announcing closures, with many other producers at risk.

portableText image

The nickel industry is strategically vital in supporting Australia’s sovereign capability, economic resilience, and resource security. The decline of the nickel industry puts at risk nearly 10,000 jobs, $1.8 billion of economic activity, and Australia’s future battery industry.

Download the full report here.

Read our latest posts

Production Tax Credit for value-add processing of Australia’s critical minerals
Energy transitionNet ZeroClimateData

Production Tax Credit for value-add processing of Australia’s critical minerals

Our report ‘Production Tax Credit for value-add processing of Australia’s critical minerals’, commissioned by the Association of Mining and Exploration Companies (AMEC), explores how targeted production tax credit for value-add processing of critical minerals can improve Australia’s competitiveness and help our domestic critical mineral sectors reach their potential. Our report finds that introducing a production tax credit for lithium, nickel, vanadium and rare earth metals can make Australia cost-competitive and create opportunities in the downstream processing of critical minerals. Australia’s critical minerals are central to the global energy transition, however global competition has put Australia at a cost disadvantage in downstream processing of critical minerals. Introducing a production tax credit of 10 per cent in Australia would help to equalise production costs with global competitors. While the production tax credit will increase fiscal costs over the forward estimates and medium-term, it will add $2.4 billion of economic activity and support 4,220 ongoing jobs.

28 Feb, 2024

PsiQuantum Launch Research
Technology

PsiQuantum Launch Research

With a $940 million investment in PsiQuantum announced, our launch research supports the economic case for building the world’s first fault-tolerant quantum computer in Brisbane, Australia. Our research found this hybrid investment bet will directly support 2,800 high-skilled jobs across the Queensland and the Australian economies and support $5.1 billion of additional economic activity.

30 Apr, 2024

Spirits industry sector competitiveness plan
InternationalEconomicsWorkforce

Spirits industry sector competitiveness plan

Our new report, commissioned by the Australian Distillers Association (ADA) and Bundaberg Rum outlines the $1 billion export opportunity for Australia’s spirits industry. While Australia has the right building blocks for developing a strong spirits export industry, it's not reaching its potential. The report identifies the key barriers holding the industry back from as well as the steps which can be taken to realise this $1 billion opportunity. Growing the spirits industry will contribute to national economic priorities of growing manufacturing jobs, supporting small business, empowering regional communities, creating export opportunities, generating tourism and supporting diversity and young people.

10 Apr, 2024

Superannuation and climate change: Better returns for a better climate
ClimateSuperannuation

Superannuation and climate change: Better returns for a better climate

Mandala's report, 'Superannuation and climate change: Better returns for a better climate' in partnership with Future Super, examines the economic impact of market failures in superannuation performance standards. It identifies opportunities to unlock long term economic uplift through reform of these standards. Climate change will reallocate capital across the economy. Australia’s $3.4 trillion of superannuation savings will be impacted by this transition and determined by Australia's policy settings. There is significant opportunity for regulatory reform that drives returns and facilitates a broader role for the superannuation industry within the transition to net zero – and more particularly to address the market failures and time inconsistency that emerge from current regulatory design choices. Such reforms would recognise the core responsibilities of superannuation and the economic and policy priorities facing Australia.

3 Apr, 2024

Loading...