Nickel production in a sustainable

and low carbon economy

Nickel Producers, Processors and Buyers Conference

13th -14th July 2022, Jakarta (Indonesia)

Mark Mistry

Senior Manager LCA and Sustainability

Nickel Institute Brussels office
12 Rue Belliard, 1040 Brussels
www.nickelinstitute.org
Anti-Trust reminder

• NI does not present forecasts or comments on nickel

markets, prices, or supply demand
• We are committed to full compliance with the
competition or antitrust laws in all jurisdictions where our
members are active
• NI Guidelines (NI website) provide an overview of areas
of legal risk
• All participants in NI activities share responsibility for
adherence to the Guidelines
• If any doubt exists about the appropriateness of specific
discussions or activities, legal advice should be obtained
before they are undertaken

NI is committed to antitrust compliance

2
Nickel Institute Member companies

3
▪ GHG emissions

▪ Energy transition

▪ Sustainability requirements

▪ Industry activities

4
The share of metals production in total GHG emissions globally

▪ Energy =roughly ¾ of all

GHG emissions

▪ Metals production: 8%

▪ Downstream / end use

sectors (65%)

5
Global nickel flows & production routes

Data: Roskill, 2019

Different nickel products entering the value chains

Nickel at the begin of many critical value chains
6
 Carbon footprint of nickel production by
producer (Source: Macquarie /CRU, 2021)

Nickel Pig Iron

Lateritic Ni metal &
Sulfidic Ni metal Ferronickel

Source: Macquarie: Nickel outlook: from stainless to batteries.

January 2021. Data from CRU

Different nickel products entering the market showing variation in carbon

footprint
 The share of metals production in total GHG emissions globally
Absolute GHG emissions in t of CO2 eq

Cobalt

Nickel (all
products)
▪ Carbon steel: highest
production volumes

▪ Aluminium: high volumes

GWP in kg CO2 / kg of metal

Aluminium & footprint

Nickel
metal Carbon steel
▪ Nickel metal similar to
Copper
Aluminium
Zinc Stainless steel
Lead
▪ Average Nickel products
similar to Cobalt

▪ Total nickel footprint:

around 0,27% of global
Estimates based on data from metal commodity associations (2020)
GHG emissions
8
▪ GHG emissions

▪ Energy transition

▪ Sustainability requirements

▪ Industry activities

9
Energy transition

https://ecotricity.co.nz/news/carbon-knowledge/

An energy transition requires to shift electricity supply from fossil power generation to
low carbon power generation
 The role of Nickel in a low carbon economy

Wind Solar,CSP Hydro Tidal CCS Geothermal Nuclear

CuNi alloys Stainless Turbines, Engineering Piping, piping, Piping,

(offshore) frames & piping, parts process process process
Gearbox casings process equipment equipment equipment
equipment

Nickel is in most of these technologies essential as very demanding

environments under which technology has to operate 11
Nickel in EV batteries

https://nickelinstitute.org/media/8d926a8a54d694a/2021-review-ni_energizing-batteries-v3.pdf

▪ Nickel is a key cathode material in EV battery technologies

▪ Different EV battery chemistries with varying nickel content
▪ Offer highest energy density - critical for EVs
The relevance of metals and notably nickel in achieving
energy transition & low carbon economy

Source: Metals for Clean Energy. KU Leuven 2022

https://eurometaux.eu/media/jmxf2qm0/metals-for-clean-energy.pdf

Nickel is one of the metallic raw materials that is essential in 1) renewable energy 2)
energy storage and 3) hydrogen production
▪ GHG emissions

▪ Energy transition

▪ Sustainability requirements

▪ Industry activities

14
Sustainability requirements that raw materials industry
has to comply with as requested by stakeholders

1) Carbon footprint
• Metals production = energy and GHG intensive
• Prevent shifting carbon footprint within value chain
• Requests to address GHG intensity

2) Due diligence & ESG risks

• Metals production associated with ESG risks
• Prevent that raw materials production leads to adverse impacts
• ESG issues to be identified & managed

3) Recycling
• Prevent impacts from improper waste management
• Recycled metal can help to mitigate impacts
• Promote recycling and boost circular economy

Stakeholders require raw materials to be provided with the right carbon footprint, with
ESG risks being identified and managed and proper end of life management
Who is requesting the sustainability aspects to be
addressed?

Car EV battery Trading Regulatory Investor Value chain

manufacturers initiatives platforms stakeholders community initiatives

The sustainability topics are in the meantime in the focus of a growing number of
different stakeholder groups for various purposes
The risks when not addressing the concerns of
stakeholders
1) Impacts market access through legislation (EU)
• Example: EU battery regulation
• ESG, carbon footprint and recycling requirements

2) Impacts access to trade platforms (LME)

• Metal brands to show compliance with due diligence requirements

3) Impacts access to certain value chains (e.g., stainless steel)

• Stainless steel producers requiring a ResponsibleSteel certificate will
require compliance with due diligence and GHG requirements

4) Impacts access to investments

• investor community request compliance with requirements
• Risk of investments steered away from unsustainable sectors

Companies risk to lose access to markets, trade platforms, value chains and investments if
not addressing notably GHG and due diligence requirements
▪ GHG emissions

▪ Energy transition

▪ Sustainability requirements

▪ Industry activities

18
What needs to be addressed in the future work
of the nickel industry?

Social

Governance
Environment

• GHG emissions • Workforce • Transparency

• Energy use & • Workplace Health • Accountability
efficiency & Safety • Code of Conduct
• Pollution • Diversity Business Practice
• Water use and • Equal opportunity • Board Diversity
pollution • Poverty and Structure
• Waste • Supply chain • Bribery
management management • Corruption
• Tailings • Training, • Stakeholder
• Biodiversity, education engagement
natural habitat • Community • Shareholder rights
•… engagement •…
•…

Our work requires to allow companies showing their environmental,

social and governance (ESG) performance on agreed criteria 19
Nickel Institute activities in view of responsible
sourcing and due diligence
THE
MOLY
MARK
THE
ZINC
MARK
THE
NICKEL
MARK
▪ Develop “Nickel Mark” to show compliance with due diligence requirements

▪ Objective: show compliance with ESG requirements described in different

discussions:
▪ EU Battery Regulation
▪ Responsible Steel
▪ Global Battery Alliance

▪ Recognition by e.g., regulators, industry initiatives, downstream sectors envisaged

20
Nickel Institute activities in view of carbon
footprint requirements

Calculation of Carbon footprint

▪ NI involved into method development to
calculate EV battery footprint

Provision of data
▪ Update data for member companies
▪ Data collection and computation is aligned
with requirements of stakeholders

Guidance
▪ Nickel Institute published guidance on
calculating GHG emissions from nickel
metal production
▪ For use by LME

https://nickelinstitute.org/media/8da2dba6e789edd/202204-lme-passport-guidance-nickel-institute.pdf 21
Key findings

Nickel is critical to achieve the energy transition

▪ Renewable power, EV Batteries, Hydrogen

Stakeholders require Ni producers to show their sustainability performance

▪ Responsible sourcing and due diligence
▪ Carbon footprint
▪ Recycling

No action might lead to adverse impacts

▪ Regulatory, value chain, Trade platform requirements
▪ Impacts on access to markets, regions, customers,
▪ Reputational impacts

Nickel Institute support

▪ Responsible sourcing and due diligence
▪ Carbon footprint

22
Nickel production in a sustainable
and low carbon economy

mmistry@nickelinstitute.org