Indonesia's New Nickel Ore Pricing Formula Increases Production Costs for Smelters
Indonesia's nickel smelters group, FINI, has raised concerns over a new pricing formula for nickel ore that took effect recently. This formula incorporates the content of other minerals in the ore, significantly increasing production costs for nickel products, including those used in battery components. According to FINI, the production costs for mixed hydro precipitate, a key material in battery production, could rise by approximately $2,400 to $2,600 per metric ton of nickel content due to the inclusion of cobalt in the pricing formula. Additionally, costs for nickel processing using the rotary kiln-electric furnace method are expected to increase by nearly $600 per ton of nickel content. The industry is already grappling with rising energy and sulfur prices, which further exacerbate the financial strain on smelters. 
