What's Happening?
Swiss-based Solway Investment Group is set to restart its nickel operations in Guatemala after a significant rise in nickel prices and the lifting of U.S. sanctions. The company plans to resume operations at its PRONICO
facility and the CGN mine, which have a combined capacity to produce 25,000 metric tons of nickel in ferronickel and extract up to 2.2 million tons of nickel ore annually. The restart is anticipated between April and May 2026. The U.S. had imposed sanctions on Solway's Guatemalan subsidiaries in November 2022, which were lifted in January 2024. The recent surge in nickel prices, reaching a 19-month peak at $19,160 per metric ton, has made it economically viable for Solway to resume production.
Why It's Important?
The restart of Solway's operations in Guatemala is significant for the global nickel market, which is crucial for electric vehicle battery production. The lifting of U.S. sanctions and the subsequent resumption of operations could stabilize nickel supply and potentially influence global prices. This development is particularly relevant as nickel prices have been volatile, influenced by Indonesia's decision to cut mining quotas. The resumption of Solway's operations could also have economic implications for Guatemala, potentially boosting local employment and economic activity.
What's Next?
Solway's planned restart in April to May 2026 will likely be closely monitored by industry stakeholders, including other nickel producers and electric vehicle manufacturers. The company's ability to maintain production levels and manage costs will be critical, especially given the competitive pricing environment. Additionally, the geopolitical implications of U.S. sanctions and their removal may continue to influence international business operations and regulatory considerations.
