Nickel Refining

Nickel refining for batteries is the conversion of mined nickel feedstocks into battery-grade nickel chemicals used in high-energy cathode active materials. While nickel is abundant globally, only a subset of refined nickel products meet the purity, consistency, and chemical form requirements needed for lithium-ion battery manufacturing. As a result, nickel refining - not nickel mining - is the constraining step for nickel-intensive cathodes.

Why nickel refining matters

High-nickel cathodes such as NMC (nickel–manganese–cobalt) and NCA (nickel–cobalt–aluminum) rely on refined nickel compounds to achieve high energy density. Battery-grade nickel must meet tight impurity limits to avoid cathode instability, accelerated degradation, and safety risk.

• Not all nickel is suitable for batteries; battery-grade material is a subset of total nickel supply.
• Refining complexity and capital intensity limit rapid capacity expansion.
• Refinery location affects qualification timelines, logistics cost, and supply resilience.

Nickel intensity vs cathode chemistry

Nickel demand in battery supply chains is driven by cathode chemistry rather than vehicle count alone. Different cathode formulations use materially different nickel fractions to balance energy density, cost, stability, and cycle life.

• NMC 811 (high-nickel) — highest nickel intensity; maximizes energy density but increases reliance on battery-grade nickel sulfate and tight impurity control
• NMC 622 / NMC 532 — moderate nickel intensity; trades some energy density for improved stability and supply flexibility
• NCA — high nickel intensity similar to NMC 811; historically favored for high-performance and long-range applications
• High-manganese NMC variants — reduced nickel content; emerging as a compromise between cost, energy density, and supply risk
• LFP and LMFP — negligible nickel content; shifts demand away from nickel refining toward lithium and iron/manganese supply chains

As cathode portfolios diversify, nickel refining capacity must scale selectively rather than uniformly. Supply constraints are most acute for high-nickel chemistries, where battery-grade nickel sulfate quality and consistency directly affect cathode yield and performance.

Battery-grade nickel products

Battery manufacturers do not consume metallic nickel. They consume refined nickel chemicals that can be incorporated into cathode precursor and CAM synthesis.

• Nickel sulfate (NiSO,sub>4·6H₂O): primary battery-grade nickel input for NMC and NCA cathodes.
• Mixed hydroxide precipitate (MHP): intermediate product often refined further into nickel sulfate.
• Mixed sulfide precipitate (MSP): intermediate feedstock from certain refining routes.

Class 1 vs Class 2 nickel

Nickel supply is commonly divided into two categories based on purity and end use.

• Class 1 nickel: high-purity nickel suitable for battery chemicals and specialty alloys.
• Class 2 nickel: lower-purity nickel typically used in stainless steel and industrial applications.

Only Class 1 nickel — or Class 2 material that can be upgraded through additional refining — is suitable for battery-grade conversion.

Refining routes

Sulfide ore refining

• Traditional route producing high-purity nickel intermediates.
• Typically lower impurity risk for battery applications.
• Limited by declining global sulfide resources.

Laterite ore refining (HPAL)

• High-pressure acid leach (HPAL) processes laterite ores.
• Produces MHP or MSP as intermediates.
• Capital-intensive, chemically complex, and historically prone to ramp delays.

Battery-grade requirements

Battery-grade nickel sulfate is defined by impurity limits, crystal quality, and consistency rather than headline purity alone.

• Nickel content: typically > 22% Ni by mass in nickel sulfate hexahydrate.
• Impurities (Fe, Cu, Zn, Pb): controlled at low ppm levels.
• Consistency: tight batch-to-batch control required for cathode synthesis.

Common bottlenecks

• HPAL ramp-up risk and long commissioning timelines.
• Waste handling, tailings management, and acid supply constraints.
• Qualification delays between refinery output and CAM acceptance.

Nickel refining and conversion plants

The table below lists representative nickel refining and conversion facilities supplying or targeting battery-grade nickel products. Status reflects publicly disclosed operating or development position.

Company / Operator	Facility	Location	Primary products	Refining route
Terrafame	Battery Chemicals Plant (Sotkamo)	Sotkamo, Finland	Nickel sulfate; cobalt sulfate	Bioleaching + hydromet
BHP	Nickel West Nickel Sulphate Plant (Kwinana)	Kwinana, Western Australia, Australia	Nickel sulfate	Sulfide matte refining + sulfate conversion
Sumitomo Metal Mining	Niihama Nickel Refinery	Ehime Prefecture, Japan	Nickel sulfate; electrolytic nickel; cobalt products	Hydromet refining (incl. HPAL intermediates)
Sumitomo Metal Mining	Harima Refinery	Hyogo Prefecture, Japan	Cobalt chemical precursors; nickel products (via MS inputs)	Hydromet refining
Vale	Long Harbour Processing Plant	Newfoundland and Labrador, Canada	Refined nickel products/intermediates	Hydromet processing
Glencore	Nikkelverk Refinery	Kristiansand, Norway	Refined nickel (Class 1)	Matte refining + hydromet
Nornickel	NN Harjavalta Refinery	Harjavalta, Finland	High-purity nickel products (incl. nickel sulphate)	Hydromet refining
Taganito HPAL Nickel Corporation (SMM group)	Taganito HPAL Plant	Surigao del Norte, Philippines	Mixed nickel-cobalt sulfide (MS)	HPAL (laterite)
Coral Bay Nickel Corporation (SMM group)	Coral Bay Nickel HPAL Plant	Palawan, Philippines	Nickel and cobalt mixed sulfide (MS)	HPAL (laterite)
PT Halmahera Persada Lygend (Harita/Ningbo Lygend JV)	Obi HPAL Nickel-Cobalt Project / HPL Complex	Obi Island, North Maluku, Indonesia	MHP; nickel sulfate; cobalt sulfate	HPAL (laterite)
Harita Nickel (Trimegah Bangun Persada)	Harita HPAL & Nickel Sulfate Operations	Obi Island / North Maluku, Indonesia	MHP; nickel sulfate; cobalt sulfate	HPAL (laterite)
Huayou / Partners	PT Huayue Nickel Cobalt Project (HNC)	Sulawesi, Indonesia	MHP (nickel and cobalt)	HPAL (laterite)
GEM / Partners	PT QMB New Energy Materials (QMB)	IMIP, Central Sulawesi, Indonesia	Ni-in-MHP; battery materials feedstock	HPAL (laterite)
Nickel Industries / Tsingshan / Partners	Excelsior Nickel Cobalt (ENC) HPAL Project	Central Sulawesi, Indonesia	MHP; nickel sulfate; nickel cathode	HPAL (laterite)
Merdeka Battery Materials / Partners	PT Sulawesi Nickel Cobalt (SLNC) HPAL Plant	IMIP, Central Sulawesi, Indonesia	MHP (nickel)	HPAL (laterite)
Merdeka Battery Materials / Brunp (CATL) JV	CATL HPAL Plant (IKIP)	Konawe, Southeast Sulawesi, Indonesia	MHP (nickel)	HPAL (laterite)
Queensland Pacific Metals	Townsville Energy Chemicals Hub (TECH)	Townsville, Queensland, Australia	Nickel sulfate; cobalt sulfate	Hydromet (laterite processing)
Jinchuan Group	Lanzhou Jinchuan New Material Technology (nickel sulfate projects)	Lanzhou, Gansu, China	Nickel sulfate (battery materials)	Hydromet / sulfate refining
CNGR Advanced Material	Qinzhou Industrial Base (nickel sulfate from high-nickel matte)	Qinzhou, Guangxi, China	Nickel sulfate crystals	Matte-to-sulfate conversion
CNGR Advanced Material	Tongren Industrial Base (nickel sulfate refining project)	Tongren, Guizhou, China	Nickel sulfate (refining)	Matte-to-sulfate conversion
FPX Nickel	Refinery Flowsheet Demonstration (battery-grade nickel sulphate)	Canada (flowsheet / pilot-scale)	Battery-grade nickel sulfate (demonstration)	Hydromet (process development)
Ambatovy (JV)	Ambatovy Nickel-Cobalt Project	Madagascar	MSP / MHP (varies by route); nickel products	HPAL (laterite)
Sherritt / Moa JV	Moa Joint Venture (nickel-cobalt)	Cuba	MSP / intermediates	HPAL (laterite)
Glencore	Murrin Murrin (Minara)	Western Australia, Australia	MSP / intermediates	HPAL (laterite)
Terrafame	Nickel intermediates / MSP (process pathway)	Sotkamo, Finland	MSP / intermediates (in addition to sulfates)	Heap leach / hydromet
Nickel Industries	Huayue Nickel Cobalt (HNC) ownership interest	Sulawesi, Indonesia	MHP (Ni/Co)	HPAL (laterite)

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