India’s state-controlled miner NMDC has put its planned expansion into nickel on hold as heavy Indonesian production continues reshaping the economics of one of the world’s most important battery and industrial metals.
Two company officials told Reuters that global oversupply, particularly from Indonesia, was a major factor behind the decision.
Indonesia now accounts for more than 60% of global nickel production, giving the country enormous influence over global supply and pricing.
The decision is notable because India classified nickel as a critical mineral in 2023 and remains dependent on imports.
Nickel is used extensively in stainless steel and in several electric-vehicle battery chemistries.
The global market has nevertheless moved toward excess supply.
The International Nickel Study Group has projected a 19,000-metric-ton global surplus for 2026, with the surplus expected to widen to approximately 70,000 tons in 2027.
Indonesia has attempted to manage expansion through production policies and other measures, but its scale continues weighing on the global market.
NMDC had also explored potential Russian nickel supplies and assets but failed to secure a meeting with major producer Nornickel, according to Reuters.
The company continues examining critical-mineral opportunities in other international markets.
For India, the strategic calculation is therefore changing.
Securing nickel supply remains important, but persistent oversupply reduces the immediate economic incentive to invest aggressively in new production.
The next indicators will be Indonesian production policy, global nickel prices and whether India’s efforts to develop domestic processing improve the economics of future investment.
