Nickel is a silvery-white metal valued for its resistance to corrosion and ability to withstand high temperatures. The majority of global demand comes from the production of stainless steel, which historically accounts for approximately 70% of its use. However, nickel has gained increasing strategic importance as a component in the cathodes of high-energy-density lithium-ion batteries, particularly for electric vehicles. The growing demand in the energy transition sector has placed a new focus on where this metal is sourced.
The Two Primary Types of Nickel Ore
The world’s terrestrial nickel resources are classified into two major geological deposit types: laterite and sulfide. These two ore types differ fundamentally in their formation process, mineralogy, and processing complexity. The distinction dictates the final quality of the nickel product and its suitability for specific industrial uses, such as batteries or steel.
Laterite deposits form through the intense chemical weathering of underlying ultramafic rocks, a process called lateritization, which occurs in hot, humid, and tropical climates. This long-term surface process concentrates nickel into oxide and silicate minerals within the limonite and saprolite zones. Laterite ores account for 60% to 70% of the world’s nickel resources, but they are generally lower-grade. They require more complex, energy-intensive processing methods like High-Pressure Acid Leaching (HPAL).
Sulfide deposits, in contrast, originate from magmatic processes deep within the Earth’s crust. They form when nickel-rich magma becomes saturated with sulfur, causing sulfide melt droplets to segregate and accumulate. These deposits are typically associated with minerals like pentlandite, pyrrhotite, and chalcopyrite, and often contain valuable byproducts such as copper and platinum-group elements. Sulfide ores are generally higher-grade and easier to process via conventional smelting, yielding the high-purity, Class 1 nickel preferred for battery production.
Global Concentration of Laterite Reserves
The vast majority of the world’s nickel reserves are contained in laterite deposits, concentrated geographically in a band around the equator, often called the “laterite belt.” This distribution is a direct result of the tropical and subtropical climate required for the intense chemical weathering that forms the ore. Laterite deposits are typically found where ancient ultramafic rocks have been exposed to aggressive chemical weathering and high rainfall.
Indonesia is the undisputed leader, holding the largest nickel reserves globally, estimated at 55 million metric tons, and is also the world’s largest nickel producer. The laterite deposits in regions like Sulawesi and Maluku result from extensive ophiolites that have been subsequently weathered. The country’s production focuses heavily on laterite ore, much of which is converted into nickel pig iron (NPI) for the stainless steel market.
Australia also possesses substantial laterite reserves, ranking second globally with approximately 24 million metric tons. Its laterite resources, particularly in Western Australia, are significant and often classified as clay silicate deposits. The Philippines is another major regional player with significant laterite reserves, acting as a key exporter of ore from its Southeast Asian island regions.
Brazil holds the third-largest global nickel reserves, estimated at 16 million metric tons, which are predominantly laterite. Deposits are concentrated in states like Goiás, Pará, and Bahia, where the tropical climate facilitated the weathering of ultramafic bedrock. New Caledonia, a French territory in the Pacific, also holds a significant share of laterite reserves and is known for its hydrous silicate laterite deposits.
Key Regions for Sulfide Nickel Deposits
Sulfide nickel deposits are geologically rarer than laterites and are found in distinct, often older, regions associated with major magmatic events. These deposits are highly valued for their high-grade ore and the co-production of metals like copper and platinum group elements. The geographical distribution contrasts sharply with the tropical laterite belt, often occurring in colder, ancient cratonic settings.
Russia is home to one of the world’s most significant sulfide deposits, the Norilsk-Talnakh region in Arctic Siberia. This massive magmatic nickel-copper-platinum group element deposit is part of the vast Siberian large igneous province. The Norilsk camp dominates Russia’s nickel reserves, which are estimated to be over 8 million metric tons.
Canada is historically a major source of sulfide nickel, with world-class deposits in geologically ancient areas. The Sudbury Igneous Complex in Ontario, believed to have formed from a massive meteorite impact, contains significant sulfide nickel reserves within its basal layers. Another major Canadian source is the Voisey’s Bay deposit in Labrador, known for its high-grade nickel and copper sulfides.
South Africa and China also contain notable, though smaller, sulfide deposits that contribute to the global supply chain. The high-purity nickel they produce is the most direct source of the nickel sulfate required for the rapidly expanding electric vehicle battery market. While laterite deposits hold the bulk of the world’s nickel, these sulfide regions remain economically important for high-specification nickel products.