In India, nickel occurs principally as oxides, sulphides, and silicates.
Applications of Nickel
Nickel is used in many ways. But three uses are most important.
1. Stainless Steel Production
The biggest use of nickel is as an alloying agent. An alloy is a mixture of metals. When you add nickel to chromium and steel, you get stainless steel. Stainless steel does not rust. It is used in kitchen utensils, medical instruments, bridges, and buildings. About two-thirds of all nickel produced goes into stainless steel.
2. Electric Vehicle Batteries
Nickel is a key metal for clean energy. It is used in batteries for electric vehicles (EVs). Two common battery types use nickel:
Modern lithium-ion batteries for EVs also contain nickel. High-nickel cathodes give cars longer range. As India pushes for more EVs, demand for nickel is growing fast.
3. Protective Coatings (Electroplating)
Nickel is often used to coat other metals. This process is called electroplating. A thin layer of nickel is deposited on iron or steel. This protects the base metal from rust and gives it a shiny finish. You see this on bathroom fittings, car parts, and jewellery.
The Current Crisis: Rising Prices and Supply Uncertainty
India’s electric vehicle and stainless-steel sectors are facing a problem. Nickel prices have gone up. Supply has become uncertain. The reason is the war in West Asia. Many supply routes pass through conflict zones. Shipping costs have increased. Some nickel-producing countries have reduced exports. Russia, a major producer, faces sanctions. Indonesia has imposed export restrictions to build its own domestic processing industry. All these factors push prices higher.
For Indian manufacturers, this is bad news. Stainless steel becomes more expensive. EV batteries cost more. This slows down the adoption of electric vehicles. The government wants to promote EVs to reduce oil imports and pollution. But high nickel prices make EVs less affordable.
India’s Dependence on Imports
India has nickel laterite reserves in Sukinda, Odisha. But the quantity is not enough to meet domestic demand. India imports most of its nickel requirements. Major suppliers include Indonesia, Australia, and Russia. When global prices rise, India has no choice but to pay more. This hurts the trade deficit. It also makes Indian products less competitive in export markets.
The Future: Recycling and Alternatives
To reduce dependence on imported nickel, India is exploring two paths.
Recycling: Old stainless steel scrap and used batteries contain nickel. Recycling can recover this metal. It is cheaper and cleaner than mining new ore.
Alternatives: Researchers are looking for battery chemistries that use less nickel or no nickel. For example, lithium iron phosphate (LFP) batteries do not contain nickel. They are cheaper but have lower energy density. For some applications, they work well.