By James Guild in East Asia Forum on 11 June 2024
Despite soaring nickel prices between 2016 and 2022, Australian nickel miners, such as Wyloo Metals and BHP, have struggled due to a surge in market supply from Indonesia, the world’s largest nickel reserve holder, leading to a fall in nickel prices. While Australian miners argue for an ESG price premium based on higher quality and lower environmental costs, the nickel production landscape is becoming increasingly influenced by geopolitics and industrial policy, rendering these market-based solutions ineffective.