Material Insights · Understanding the Material World

Aerospace and defence and Nickel

Nickel-base superalloys make up much of a jet engine's hot section, over half of engine weight with other superalloys, but aerospace takes only a small slice of world nickel, so engine makers buy at prices set by stainless steel and Indonesian supply.

Aerospace and defence (industry) and Nickel (commodity): 3 relationships.

How they are linked

1. Industry input

Physical flow · Strong · Nickel to aerospace and defence

Nickel-base superalloys keep their strength close to their melting point, so they are used for turbine blades, vanes and combustors; the site rates nickel 5 of 5 for alloy suppliers and engine makers.

  • 5 of 5 criticality for alloy suppliers and aero-engine makers
  • 3 aerospace enterprise types that depend on nickel
  • over 50% superalloys' share of jet engine weight

Nickel-base alloys take the hottest duties, often above 1,000 °F, in blades, vanes and combustion chambers. Maintenance providers rate nickel 3 of 5 because worn hot-section parts must be replaced with the same certified alloys.

Enterprise types that depend on it:

  • Specialty alloy, casting and forging suppliers: superalloys (criticality 5 of 5)
  • Aero-engine makers: hot-section superalloys (criticality 5 of 5)
  • Maintenance, repair and overhaul (MRO) providers: replacement parts (criticality 3 of 5)

Sources: Material Insights; GlobalSpec (Elsevier)

2. Small buyer in a stainless-driven market

Cost and price · Asymmetric · Stainless steel and Indonesian supply set the price aerospace pays

Alloys and superalloys take only about 8% of primary nickel against about 65% for stainless steel, so aerospace buys at prices set elsewhere.

  • about 8% alloys and superalloys share of primary nickel use, 2024
  • about 65% stainless steel share, 2024
  • $16,812 and about $15,000 average LME nickel cash price per tonne, 2024 and 2025

Indonesia mined about 2.6 Mt of the world's 3.9 Mt in 2025, and LME prices eased from $16,812 a tonne in 2024 to about $15,000 in 2025, which lowers superalloy input costs. Alloy demand still rose about 8% in 2024, helped by aerospace and oil and gas.

Sources: Nornickel; USGS

3. Indian engine self-reliance

Policy · High in India · Domestic superalloys still need imported nickel

India mines no nickel, so making engine superalloys at home moves the dependence from finished alloy to refined nickel imports.

  • 100% India's import dependence for lithium, cobalt and nickel minerals

MIDHANI supplies nickel-base superalloys, titanium alloys and special steels for engines built at HAL Koraput, and in 2025 HAL ordered superalloys for engines such as the Su-30MKI's AL-31FP. This reduces imports of finished alloy but not of nickel itself.

Sources: IDRW; Indian Masterminds; Mongabay India

For investors

Key learnings

  1. Superalloys are over half of a jet engine's weight, so engine builds and overhauls drive aerospace nickel demand.
  2. Alloys are only about 8% of primary nickel use, so nickel prices follow stainless steel and Indonesian output, not aerospace.
  3. Low nickel prices ease alloy costs, but the value lies in melting, forging and casting certified superalloys rather than in the metal.

What to track

  • LME nickel price: Moves superalloy input costs (Daily · LME)
  • Aero-engine deliveries and shop visits: Drive superalloy demand for new and spare parts (Quarterly · engine maker results)
  • Indonesian nickel output and export policy: Sets the world nickel price (Monthly · Indonesian ministry; yearly · USGS)

For policymakers

Key learnings

  1. India imports all its nickel, so self-reliance in engines needs secure access to refined nickel as well as domestic alloy making.
  2. MIDHANI's superalloy supply to HAL shows capacity being built; qualifying alloys for newer engines is the next test.
  3. Superalloy scrap from maintenance can be recycled, and capturing it saves imports as India's maintenance work grows.

What to track

  • Nickel imports by source and grade: Shows exposure to particular suppliers (Monthly · Ministry of Commerce trade data)
  • Indigenous superalloy orders and qualifications: Signal fewer imports of finished alloy (As announced · MIDHANI, HAL, DRDO)

India

India has no nickel mine output and imports all its needs; MIDHANI supplies nickel-base superalloys for aero-engines built at HAL Koraput and received a superalloy order from HAL in 2025.

Sources

  1. Aerospace and defence: materials, Material Insights (2026)
  2. Manufacturing technology for aerospace structural materials, chapter 6: superalloys, GlobalSpec (Elsevier)
  3. Annual Report 2024: strategic report, commodity markets, Nornickel (2025)
  4. Mineral Commodity Summaries 2026: Nickel, USGS (2026)
  5. HAL's order with MIDHANI bolsters India's indigenous jet engine capabilities, IDRW (2025)
  6. MIDHANI indigenous superalloys and titanium alloys for HAL aero engines, Indian Masterminds (2025)
  7. India approves mission to bridge critical mineral gap in energy transition, Mongabay India (2025)