Global demand for nickel is expected to continue rising as the shift toward electric vehicles (EVs) and energy storage systems accelerates, further strengthening the mineral’s strategic importance in battery manufacturing, Mining Zimbabwe can report.
By Ryan Chigoche
According to a fresh report by the Organisation for Economic Co-operation and Development, nickel demand and production are both expected to increase in the coming years, driven largely by growing demand from the energy storage and EV battery sectors.
However, despite holding notable reserves, Africa’s role in global nickel supply is expected to remain relatively limited, with no African country projected to rank among the world’s leading producers by 2040.
Nickel has traditionally been used in stainless steel production, superalloys, and rechargeable batteries. However, its role in lithium-ion battery manufacturing has expanded significantly in recent years as demand for EVs and battery storage technologies continues to grow globally.
The OECD report notes that batteries accounted for 13% of global nickel consumption in 2023, highlighting the growing importance of the mineral in the global energy transition.
Part of this demand growth is being driven by nickel’s increasing use as a substitute for the more expensive cobalt in EV battery manufacturing. According to the report, this shift has fuelled global momentum toward the development of new nickel mining projects.
Despite this rising demand outlook, African nickel production remains modest, contributing about 3% of global output. Production on the continent is concentrated mainly in Madagascar, South Africa, and Côte d’Ivoire.
Madagascar accounted for around 1% of global production, while South Africa and Côte d’Ivoire each contributed approximately 0.7%, according to the report.
Africa’s reserve base is also relatively small in global terms. Reserves located in South Africa, Zimbabwe, and Madagascar accounted for around 5% of global reserves in 2023.
While Zimbabwe remains one of the African countries with nickel reserves, the OECD report indicates that the continent is unlikely to emerge as a major global nickel production hub over the medium to long term.
Recent market trends, however, point to strong growth in global supply. Nickel production increased by 47% between 2019 and 2023 and grew by more than 15% in 2024.
The report attributes much of this expansion to significant production growth in Indonesia, which has rapidly strengthened its position in the global nickel market.
Looking ahead, the OECD expects nickel demand to continue increasing alongside the expansion of EV production and energy storage deployment. Production from current pipeline projects is also expected to rise in response to growing demand.
Even so, the report suggests that Africa’s contribution to global nickel supply is likely to remain relatively small compared to dominant global producers, despite the continent’s growing strategic relevance in the broader critical minerals sector.
