# Nickel and Vehicles, ships, rail, aircraft Vehicles use nickel in two very different ways: in nickel-rich NMC and NCA battery cathodes, and in stainless steels and superalloys for engines, ships and aircraft. Battery demand for nickel has grown fast but is held back by the spread of nickel-free LFP cells, and most new nickel now comes from Indonesia. Source page: https://www.materialinsights.org/links/nickel-and-vehicles-ships-rail-aircraft/ [Nickel](https://www.materialinsights.org/commodities/nickel/) (commodity) and [Vehicles, ships, rail, aircraft](https://www.materialinsights.org/industries/vehicles/) (industry): 4 relationships. ## How they are linked ### 1. Industry input *Physical flow · Strong · Nickel to vehicles, ships, rail, aircraft* Nickel raises the energy density of NMC and NCA cathodes and gives stainless steels and superalloys their resistance to heat and corrosion; the site rates it 5 of 5 on criticality for EV battery makers and for aircraft, ship and rolling-stock builders. - **3** enterprise types in this industry that depend on nickel - **5 of 5** criticality for EV cell makers (NMC cathodes) and for aircraft, ship and rail builders (engine alloys) - **more than 85%** share of US nickel use in stainless and alloy steels and nickel alloys The two uses draw on different grades: battery cathodes need high-purity nickel sulphate, while stainless and alloy makers can use ferronickel, nickel pig iron or metal. Alloys and steels, not batteries, still take most nickel in the US. Titanium alloys can stand in for nickel alloys in some corrosive settings, and the site notes that aerospace-grade superalloys have very few certified sources. Enterprise types that depend on it: - EV battery cell and materials makers: NMC cathodes (criticality 5 of 5) - Aircraft, ship and rolling-stock builders: engine alloys (criticality 5 of 5) - Flat-steel, aluminium and titanium producers: superalloys and stainless (criticality 3 of 5) Sources: [Material Insights](https://www.materialinsights.org/industries/vehicles/materials/); [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf) ### 2. EV batteries drive growth *Transition · Rising · EV sales raise nickel demand* Each long-range car with a nickel-rich cathode carries far more nickel than a combustion car, so electric car sales became the fastest-growing source of nickel demand. - **about 2% to 10%** share of nickel demand going to EV batteries, 2017 to 2022 - **60%** NMC share of the EV battery market, 2022 The IEA put EV batteries at about 10% of nickel demand in 2022, up from about 2% five years earlier, with NMC the leading chemistry at 60%. Stainless steel remains the larger use, so the battery effect shows up at the margin and in demand for battery-grade nickel. Sources: [IEA](https://prod.iea.org/reports/global-ev-outlook-2023/trends-in-batteries) ### 3. Nickel-free LFP cells *Substitution · Rising · LFP cathodes replace nickel-rich cathodes* Lithium iron phosphate cells use no nickel and cost less, so every gain in their share cuts the nickel carried per electric vehicle. - **just under 30%** LFP share of EV batteries, 2022 - **nearly 50%** LFP share of EV batteries deployed, 2024 - **over 55%** LFP share of EV batteries deployed, 2025 LFP rose from just under 30% of EV batteries in 2022 to over 55% in 2025, on IEA figures, led by Chinese carmakers. Outside China nickel-based chemistries still dominated, at almost 80% of batteries deployed in 2025, so the nickel content of an EV now depends heavily on where it is made. Sources: [IEA](https://prod.iea.org/reports/global-ev-outlook-2023/trends-in-batteries); [IEA](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries) ### 4. Indonesian supply *Geography and ownership · Strong · Vehicle supply chains draw nickel from Indonesia* Indonesia's ore export ban and new processing plants have made it the dominant nickel producer, so battery, stainless and alloy chains for vehicles all lean on one country. - **2.6 of 3.9 Mt** Indonesia's share of world nickel mine output, 2025 estimate - **2.31 of 3.71 Mt** Indonesia's share of world mine output, 2024 Indonesia supplied about two-thirds of world mine output in 2025, up from about 62% in 2024. Nickel prices have trended down from their 2022 highs as this output grew, which eased costs for vehicle makers but concentrated the supply risk. Sources: [USGS](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf) ## For investors ### Key learnings 1. EV sales alone do not forecast nickel demand: the LFP share, over 55% of EV batteries in 2025 on IEA figures, decides how much nickel each new electric vehicle carries. 2. Stainless and alloy steels still take most nickel, so vehicle demand moves the battery-grade segment far more than the overall nickel market. 3. Aerospace and naval builders depend on nickel superalloys with few certified suppliers, a quieter but stickier source of demand than cars. ### What to track - **LFP share of EV battery deployments**: A rising share cuts nickel per vehicle and weakens battery demand for nickel (Monthly · industry trackers; annual · IEA Global EV Outlook) - **LME nickel price**: Low prices reflect Indonesian surplus and ease cathode and stainless costs for vehicle makers (Daily · LME) - **Indonesian nickel output and export rules**: Policy changes there move availability of battery-grade intermediates (Annual · USGS Mineral Commodity Summaries; as announced · Indonesian government) ## For policymakers ### Key learnings 1. A country building EV and battery capacity without nickel mines will import nickel, mostly linked to Indonesia, unless it favours LFP or recycling. 2. Choice of battery chemistry in incentive schemes is also a choice about nickel supply exposure. 3. Defence aviation and shipbuilding need certified nickel superalloys, which warrant separate supply planning from passenger EVs. ### What to track - **Battery chemistry mix in subsidised EVs**: Shows how much the EV programme depends on imported nickel (Annual · scheme disclosures) - **Indonesia's share of world nickel mine output**: A higher share raises concentration risk for importing countries (Annual · USGS Mineral Commodity Summaries) ## India India's vehicle industry still imports most batteries and battery materials, so the nickel in NMC cells used in Indian vehicles arrives largely inside imported cells and cathode material. ## Sources 1. [Vehicles, ships, rail, aircraft: materials](https://www.materialinsights.org/industries/vehicles/materials/), Material Insights (2026) 2. [Global EV Outlook 2023: trends in batteries](https://prod.iea.org/reports/global-ev-outlook-2023/trends-in-batteries), IEA (2023) 3. [Global EV Outlook 2026: electric vehicle batteries](https://iea.org/reports/global-ev-outlook-2026/electric-vehicle-batteries), IEA (2026) 4. [Mineral Commodity Summaries 2026: Nickel](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf), USGS (2026)