Nickel Refining

HPAL · MHP · nickel sulfate · Indonesia

Indonesia went from exporting ore to producing most of the world's nickel in about a decade. Chinese companies built and own most of that capacity.

Bars of 2024 nickel mine output: Indonesia 2.2 million tons, Philippines 330,000, Russia 210,000, Canada 190,000, China 120,000, rest of world about 650,000. Below, Indonesia's battery route: laterite ore from Sulawesi and Obi Island, high-pressure acid leach (HPAL), mixed hydroxide precipitate (MHP), nickel sulfate for NMC and NCA cathodes - mostly in Chinese-owned plants. NICKEL MINE OUTPUT, 2024 Indonesia 2.2 Mt Philippines 330,000 t Russia 210,000 t Canada 190,000 t China 120,000 t Rest of world ~650,000 t INDONESIA'S BATTERY ROUTE (MOSTLY CHINESE-OWNED) Laterite ore Sulawesi, Obi HPAL acid leach MHP Ni-Co hydroxide Ni sulfate to NMC, NCA
Indonesia share of mining
~60%
Battery chemical
NiSO4·6H2O
Main battery route
HPAL to MHP
Nickel West
Suspended Oct 2024
Hub
Supply Chain

Finding

Battery nickel now comes mainly from Chinese-built HPAL plants in Indonesia, and the low prices they caused closed much of the Western sulfide nickel industry

Indonesia banned ore exports in 2020, and Chinese firms - Tsingshan, Huayou, GEM, Lygend, CNGR and CATL's Brunp - built smelters and high-pressure acid leach plants at the Morowali (IMIP), Weda Bay and Obi Island industrial parks. HPAL turns laterite ore into mixed hydroxide precipitate (MHP), which is refined to nickel sulfate in Indonesia or China. Indonesia now mines about 60% of the world's nickel.

The resulting price collapse forced BHP to suspend Nickel West, including its Kwinana nickel sulfate plant, in October 2024; Glencore idled Koniambo in New Caledonia; Queensland Pacific Metals shelved its Townsville hub. Outside Indonesia and China, battery-grade nickel comes from Sumitomo Metal Mining in Japan, Nornickel Harjavalta and Terrafame in Finland, Vale's Long Harbour in Canada and Korea Zinc in Korea. Indonesian HPAL has a high carbon footprint from coal power and tailings risk, and its Chinese ownership limits eligibility under US IRA sourcing rules.

Nickel intensity depends on chemistry: NMC 811 and NCA use the most; mid-nickel, high-manganese NMC less; LFP, LMFP and sodium-ion none. The LFP shift has slowed battery nickel demand growth, but nickel cells still dominate long-range EVs outside China.

Plants

Nickel refining and conversion plants

Battery-grade nickel sulfate producers and the HPAL plants that feed them.

Nickel refining and conversion plants
CompanyFacilityLocationProductsRoute / status
Huayou Cobalt, Nickel IndustriesHuayue Nickel Cobalt (HNC)IMIP Morowali, Central Sulawesi, IndonesiaMHPHPAL; operating
GEM, Tsingshan, BrunpQMB New Energy MaterialsIMIP Morowali, Central Sulawesi, IndonesiaMHPHPAL; operating
Nickel Industries, TsingshanExcelsior Nickel Cobalt (ENC)IMIP Morowali, Central Sulawesi, IndonesiaMHP, nickel sulfate, nickel cathodeHPAL; ramping
Harita Nickel, Ningbo LygendHalmahera Persada Lygend HPAL complexObi Island, North Maluku, IndonesiaMHP, nickel sulfate, cobalt sulfateHPAL; operating
Merdeka Battery Materials, TsingshanSulawesi Nickel Cobalt (SLNC)IMIP Morowali, Central Sulawesi, IndonesiaMHPHPAL; operating
Merdeka Battery Materials, Brunp (CATL)HPAL plantIKIP Konawe, Southeast Sulawesi, IndonesiaMHPHPAL; development
CNGR Advanced MaterialQinzhou and Tongren basesGuangxi and Guizhou, ChinaNickel sulfateMatte-to-sulfate; operating
Jinchuan GroupLanzhou nickel sulfate plantsGansu, ChinaNickel sulfate, nickel cathodeSulfide matte refining; operating
Sumitomo Metal MiningNiihama nickel refineryEhime, JapanNickel sulfate, electrolytic nickel, cobaltRefines Philippine HPAL sulfide; operating
Sumitomo Metal MiningTaganito and Coral Bay HPAL plantsPhilippinesMixed nickel-cobalt sulfideHPAL; operating
NornickelHarjavalta refineryFinlandNickel cathode, briquettes, nickel sulfateMatte refining; operating
TerrafameSotkamo battery chemicals plantFinlandNickel sulfate, cobalt sulfateBioheap leaching plus hydromet; operating
Vale Base MetalsLong Harbour processing plantNewfoundland and Labrador, CanadaClass 1 nickel, cobalt, copperHydromet; operating
Korea Zinc (KEMCO)Onsan nickel sulfate plantUlsan, South KoreaNickel sulfateHydromet; operating
GlencoreNikkelverk refineryKristiansand, NorwayClass 1 nickel, cobaltMatte refining; operating
GlencoreMurrin MurrinWestern AustraliaNickel and cobalt briquettesHPAL plus refinery; operating
BHPNickel West Kwinana nickel sulfate plantWestern AustraliaNickel sulfateCare and maintenance since October 2024
Sumitomo-led JVAmbatovyMadagascarNickel and cobalt briquettesHPAL plus refinery; operating
Sherritt, Cuba JVMoa JVCuba; refined in Alberta, CanadaMixed sulfide; nickel and cobalt metalHPAL; operating
Queensland Pacific MetalsTownsville Energy Chemicals HubQueensland, AustraliaNickel and cobalt sulfate (planned)Shelved
FPX NickelBaptiste refinery flowsheetBritish Columbia, CanadaNickel sulfate (demonstration)Pilot

Routes

Routes and products

Nickel routes and products
Route / productWhat it isNote
Sulfide oreSmelt to matte, refine to Class 1 nickel or sulfateCleaner feed; declining resources (Russia, Canada, Australia)
Laterite via HPALHigh-pressure acid leach to MHP or mixed sulfideIndonesia and Philippines; capital-intensive, slow ramps
Laterite via NPI to matteNickel pig iron converted to high-grade matteTsingshan route that linked stainless capacity to batteries
Nickel sulfateNiSO4·6H2O, ~22% NiMain battery input for NMC and NCA
Class 1 vs Class 2Class 1 is 99.8%+ nickel; Class 2 (NPI, ferronickel) goes to stainlessOnly Class 1 or upgraded intermediates suit batteries

Sources

Sources and scope

Scope
Nickel Refining
Sources
USGS Mineral Commodity Summaries 2025; IEA Global Critical Minerals Outlook 2025; company reports
Updated
October 2026