Top ASX-Listed Nickel Producers: Where the Growth Opportunities Lie in 2024

The nickel market has undergone a significant transformation. While traditionally earmarked for stainless steel production, the surging demand from the lithium-ion battery sector—particularly the electric vehicle industry—has fundamentally reshaped investment priorities. Australia’s leading nickel miners are now at the forefront of this energy transition.

Throughout 2024, nickel prices experienced considerable turbulence. The first half of the year saw pricing pressures as Indonesian supply continued to dominate global markets, pushing valuations below the US$16,000 per tonne threshold in February. A brief rally in April and May propelled the commodity to a year-to-date peak of US$21,615, yet momentum failed to sustain. Despite an intra-quarter bounce above US$18,000 in early October, prices retreated again, settling around US$15,775 per MT by mid-December. This volatility has weighed on Australian miners’ stock performance, yet forward-looking investors may find compelling entry opportunities as longer-term fundamentals remain supportive.

The following companies represent the largest nickel-focused players on the ASX by market capitalisation, based on data current as of December 17, 2024:

BHP: Australia’s Diversified Nickel Giant

Market capitalisation: AU$204.67 billion | Share price: AU$40.52

BHP operates as a diversified resource major with substantial nickel production capabilities. The company extracts nickel sulphide ore through its Western Australian operations, managing the complete value chain from mining to production of both matte and refined metal. Approximately 85 percent of its nickel output is directed toward the EV sector, underscoring its exposure to battery demand.

The company is advancing decarbonisation initiatives. In September 2022, BHP’s Nickel West division partnered with renewable energy operator Enel Green Power to develop the Flat Rocks wind farm in Western Australia, featuring 18 turbines—the state’s tallest installations. By October 2023, more than half were operational. Once fully commissioned, the facility will supply renewable energy to BHP’s Kalgoorlie smelter and Kambalda concentrator operations.

In its 2024 fiscal year results (ended June 30), BHP reported nickel production of 81,600 tonnes, representing a 2 percent year-on-year increase and positioning output at the midpoint of its 77,000–87,000 tonne guidance range. However, in October, the company temporarily halted nickel production at Nickel West citing oversupply and depressed pricing dynamics, though it committed to continued investment. A decision review is scheduled for February 2027.

IGO: Leveraging the Nova and Lithium Advantage

Market capitalisation: AU$3.79 billion | Share price: AU$5.09

IGO operates as a multi-commodity miner with significant exposure to the nickel sector through its 100 percent-owned Nova deposit in Western Australia’s Fraser Range. Nova represents the company’s primary nickel asset, combining nickel, copper, and cobalt production.

Q1 FY2025 results showed Nova nickel output of 3,692 tonnes, declining 42 percent sequentially due to reduced ore grades and recovery impacts. The Forrestania operation, IGO’s secondary production facility, moved into care and maintenance from the December quarter following operational challenges including a seismic event at the Spotted Quoll mine in July, which accelerated closure plans. Forrestania generated 802 tonnes in Q1, a 36 percent drop quarter-on-quarter.

Beyond primary nickel operations, IGO maintains a 49 percent stake in the Tianqi Lithium Energy Australia joint venture alongside Chinese partner Tianqi Lithium. This partnership controls 51 percent of Greenbushes, Australia’s premier lithium mining operation, providing IGO with valuable exposure to the battery materials ecosystem.

Nickel Industries: Indonesia-Focused Production at Scale

Market capitalisation: AU$3.78 billion | Share price: AU$0.84

Headquartered in New South Wales, Nickel Industries (formerly Nickel Mines) has positioned itself as a major nickel pig iron producer for stainless steel manufacturing, while transitioning to high-grade nickel matte output for EV applications since 2022. The company operates an 80 percent interest across multiple rotary kiln electric furnace (RKEF) operations distributed across Indonesian industrial parks: Hengjaya Nickel, Oracle Nickel, and Ranger Nickel within the Morowali complex, plus Angel Nickel in Weda Bay. An additional 80 percent stake in the Hengjaya nickel mine completes its Indonesian footprint.

The 2023 annual report documented a nickel production milestone of 131,126 tonnes. This encompassed 834,192 tonnes of 12.9 percent-grade nickel pig iron alongside 119,822 tonnes of lower-grade matte grading 17.1 percent. More recently, the June quarterly highlighted an upgraded 44 percent interest in the Excelsior nickel-cobalt project (up 30.25 percent), currently under construction with expected commissioning before October 2025.

The September quarterly marked the company’s strongest quarter, delivering over US$100 million in EBITDA from operations. The Hengjaya Mine contributed significantly through record ore production and sales of approximately 3 million wet metric tonnes, generating US$37.3 million in EBITDA alone.

Centaurus Metals: Brazilian Sulphide Play with Strong Economics

Market capitalisation: AU$183.78 million | Share price: AU$0.375

Centaurus Metals, a development-stage miner headquartered in Brazil, is advancing the Jaguar nickel-copper-cobalt project located within Brazil’s Carajás mineral province. The company’s strategic objective is becoming a major nickel sulphide supplier aligned with environmental sustainability goals.

In July 2024, Centaurus released a feasibility study for Jaguar projecting an after-tax net present value of AU$997 million, an internal rate of return of 31 percent, and a payback period of 2.7 years from first production commencement. Concurrent mineral resource estimates indicated 138.2 million tonnes at 0.87 percent nickel (1.2 million tonnes contained nickel), with measured and indicated resources comprising 112.6 million tonnes at 0.87 percent (978,900 tonnes contained nickel). An underground scoping study is currently underway to evaluate high-grade resources positioned directly beneath the feasibility pit.

Ardea Resources: World-Class Cobalt-Nickel Blend

Market capitalisation: AU$69.89 million | Share price: AU$0.335

Ardea Resources is developing the wholly owned Kalgoorlie nickel-cobalt project in Western Australia, anchored by the Goongarrie Hub deposit. The company has characterised the asset as hosting “the largest nickel-cobalt resource in the developed world.”

A 2023 prefeasibility study outlined ore reserves of 194.1 million tonnes grading 0.7 percent nickel and 0.05 percent cobalt, supporting 1.36 million tonnes of contained nickel and 99,000 tonnes of contained cobalt. The envisioned operation encompasses open-pit mining with a 40-year operational life and targeted annual production of 30,000 tonnes nickel and 2,000 tonnes cobalt.

In July 2023, Ardea signed a memorandum of understanding with a Japanese consortium including Sumitomo Metal Mining, Mitsubishi, and Mitsui to jointly advance Goongarrie Hub. By February 2024, the consortium and Ardea aligned on definitive feasibility study budget and scope. Regulatory progress accelerated in August 2024 when Australian Foreign Investment Review Board approval was obtained, alongside merger control clearance from South Korea’s Fair Trade Commission. The September 2024 quarterly report provided progress updates on the feasibility study development pathway.

Investment Considerations

Why does nickel matter for portfolios?

Nickel’s role has expanded beyond traditional stainless steel applications. The metal is now integral to lithium-ion battery chemistry, positioning it as a critical energy transition material. This dual-demand profile—legacy industrial use plus emerging EV demand—provides structural support. The metal reached all-time highs in 2022 and maintains valuations not witnessed for over a decade, reflecting persistent interest from climate-conscious investors.

Evaluating sector risk and opportunity

For investors seeking exposure to green metals, nickel presents compelling characteristics. However, individual due diligence remains essential to assess portfolio fit, risk tolerance, and time horizons. The sector’s cyclical nature and price volatility require sophisticated analysis.

Accessing nickel through alternative vehicles

While pure-play nickel ETFs remain limited, alternatives include the iShares S&P/TSX Global Base Metals Index ETF and the VanEck Green Metals ETF, offering diversified commodity exposure through traditional brokerage platforms. ETFs appeal to investors preferring reduced single-company risk and simplified entry mechanisms compared to direct equity positions.

Data accurate as of December 17, 2024. Follow markets closely for real-time developments in this evolving sector.