Philippine nickel output seen to grow by 15% this year

Despite global market headwinds, local nickel output is expected to rise by as much as 15 percent this year, driven by demand from steel production and renewable energy sectors.

“For 2025, we can expect probably 10 to 15 percent more [in terms of productivity],” Philippine Nickel Industry Association (PNIA) president Dante Bravo said in a press briefing on Tuesday.

The estimate is aligned with the forecast on global nickel market, with Bravo saying that overall production was “poised for growth” despite various challenges, such as changing demand and supply constraints.

READ: DMCI earmarks P400M for two nickel mines

PNIA market analysts estimate global nickel production to reach 3.649 million tons this 2025, an increase of 3.8 percent from last year while consumption is seen to climb by 5 percent to 3.514 million tons.

But slower demand from China, one of the country’s key nickel export markets, is seen to temper growth.

Bravo said China’s slowdown in stainless steel production and shift to lithium iron phosphate batteries—a type of rechargeable battery known for its lower cost, safety and good performance in extreme temperatures—could dampen demand for nickel.

“Furthermore, low nickel recycling rates and geopolitical instability in key nickel-producing countries like Indonesia and the Philippines may affect supply flexibility and overall market stability,” he added.

Even so, Bravo said rising demand from emerging markets and the long-term potential in renewable energy infrastructure provide significant opportunities for the Philippine nickel industry.

To position the country as a reliable and competitive nickel supplier in the global market, Bravo said this requires focusing on sustainable growth, investing in technological innovation and establishing a robust governance framework.

The Mines and Geosciences Bureau (MGB) has yet to release the full-year 2024 data on metal production.

The value of metal output rose by 3.17 percent to P195.92 billion in the nine months ending September last year from P189.9 billion in the same period a year ago, according to the MGB.

Nickel ore and its by-products, including nickel-cobalt mixed sulfide and scandium oxalate, represented 36.26 percent or P71.05 billion of the total. This amount was lower than the P90.56 billion recorded previously.