Nickel producers are bracing for a tough year in 2025, with the global nickel market expected to remain oversupplied, putting downward pressure on prices. Analysts attribute this oversupply to Indonesia’s rapidly expanding nickel industry, disrupting global markets and driving nickel prices down from previous highs. However, the largest nickel producer revealed plans to cut production by almost 40%, greatly impacting global supply.
Nickel Price Dynamics and Producer Responses
The London Metal Exchange (LME) reported the three-month nickel price at $15,415 per metric ton on December 30. This marks a 7.2% year-over-year drop and a 28.7% decline from its peak of $21,615 in May.
Despite rising global demand, production surges from top producers. Indonesia and China will maintain an oversupply, with further price reductions anticipated.
The global surplus is forecast to shrink slightly, from 103,000 metric tons in 2024 to 87,000 metric tons in 2025, according to Jason Sappor, a senior analyst at S&P Global Commodity Insights. However, this surplus is still substantial enough to keep prices down, increasing the risk of more mine closures.

Producers are already adjusting. The Indonesian government announced plans to manage supply and support prices, while companies have begun suspending operations.
For example, BHP Group paused its Nickel West operations in Australia. Meanwhile, Anglo American announced the sale of two Brazilian nickel mines as part of a restructuring effort.
Adrian Gardner, principal analyst for nickel markets at Wood Mackenzie, warned that further temporary mine closures could occur if prices fall below production costs.
Indonesia’s Nickel Plan Cutting 35% of Global Supply
Indonesia has solidified its position as the world’s top nickel producer. The Southeast Asian country supplied over 56% of global mined nickel in 2024. This dominance could grow further, with the country’s output projected to increase by 7.7% in 2025 to 2.4 million metric tons.
The Indonesian nickel boom comes from a 2020 ban on raw ore exports, encouraging Chinese companies to invest in local processing facilities. These plants convert nickel laterite ore into ferronickel, a key material for stainless steel production.
While Indonesia’s growth boosts its economy, it also increases the global nickel surplus, putting further pressure on prices.
Recently, the world’s top nickel producer is considering cutting its nickel mine quotas by nearly 40% in 2025. This move could reduce global supply by over a third, potentially driving up nickel prices, according to Macquarie Group Ltd. as reported by Bloomberg.
- The proposed cuts would lower output from 272 million tons in 2024 to just 150 million tons this year.
The Indonesian government’s restrictions on nickel mining have already caused supply strains. In 2024, these limitations led to record nickel ore imports from the Philippines, the second-largest producer.
However, the market still experienced oversupply, with weakening demand from the stainless steel and battery sectors contributing to nickel’s second consecutive annual price drop.
Demand Concerns: EV Market Slowdown
Nickel demand, particularly from the battery sector, is under strain and the metal’s role in the electric vehicle (EV) market adds more complexity.
The growing adoption of lithium-iron-phosphate (LFP) batteries and increased demand for plug-in hybrid EVs reduce the need for nickel-rich battery chemistries. These batteries are primarily produced by Chinese companies.
LFP batteries, which are nickel-free, offer lower costs and reduced environmental impact. Their growing adoption, even in Indonesia, is challenging nickel’s dominance in the EV supply chain.
Analysts at ING highlighted sluggish EV sales and a potential rollback of the $7,500 federal tax credit for EV purchases under the Inflation Reduction Act (IRA) as additional challenges. If President-elect Donald Trump follows through on this plan, it could slow the U.S. energy transition and reduce nickel demand from American trading partners.
Amid these shifts, Indonesia’s partnerships with China remain pivotal. Recent agreements between the two nations emphasized collaboration in EVs, lithium batteries, and critical minerals like nickel. These efforts aim to stabilize supply chains and advance the energy transition.
If Indonesia proceeds with significant supply cuts, the nickel market could experience tighter conditions, boosting prices. However, the rise of alternative battery technologies highlights the evolving dynamics in the global nickel and EV industries.
Optimistic Outlook Amid Challenges
Despite the oversupply and price pressures, some analysts remain optimistic about nickel’s prospects. Adrian Gardner from Wood Mackenzie, for instance, remarked:
“We are expecting [a] 10%-12% increase in demand for primary nickel in 2025, almost double the rate of production growth…We are expecting a small average price rise for 2025 on an annual average basis.”
S&P Global Commodity Insights predicts that nickel prices will remain low in the coming years. The analysts project that the global surplus will be at 39,000 metric tons by 2028. This is partly due to the declining demand for primary nickel in the European Union’s EV battery sector over 2024–2028.

Amid this dynamic shift in the nickel market, one company is making huge efforts to advance U.S. nickel independence – Alaska Energy Metals Corporation (AEMC). Its flagship Nikolai project in Alaska holds significant resources of nickel, copper, cobalt, and platinum group metals, essential for renewable energy and electric vehicles.
While nickel producers face immediate challenges, the metal’s long-term outlook depends on balancing supply and demand, technological shifts in the battery sector, and policy decisions in major producing nations like Indonesia.
Overall, 2025 will likely be a pivotal year for the nickel market, testing the resilience of producers and the effectiveness of regulatory interventions.
Disclosure: Owners, members, directors, and employees of carboncredits.com have/may have stock or option positions in any of the companies mentioned: AEMC.
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Carbon Footprint
Climate Impact Partners Unveils High-Quality Carbon Credits from Sabah Rainforest in Malaysia
The voluntary carbon market is changing. Buyers are no longer focused only on large volumes of cheap credits. Instead, they want projects with strong science, long-term monitoring, and clear proof that carbon has truly been removed from the atmosphere. That shift is drawing more attention to high-integrity, nature-based projects.
One project now gaining that spotlight is the Sabah INFAPRO rainforest rehabilitation project in Malaysia. Climate Impact Partners announced that the project is now issuing verified carbon removal credits, opening access to one of the highest-quality nature-based removals currently available in the global market.
Restoring One of the World’s Richest Rainforest Ecosystems
The project is located in Sabah, Malaysia, on the island of Borneo. This region is home to tropical dipterocarp rainforest, one of the richest forest ecosystems on Earth. These forests store huge amounts of carbon and support extraordinary biodiversity. Some dipterocarp trees can grow up to 70 meters tall, creating habitat for orangutans, pygmy elephants, gibbons, sun bears, and the critically endangered Sumatran rhino.
However, the forest within the INFAPRO project area was not intact. In the 1980s, selective logging removed many of the most valuable tree species, especially large dipterocarps. That caused serious ecological damage. Once the key mother trees were gone, natural regeneration became much harder. Young seedlings also had to compete with dense vines and shrubs, which slowed the forest’s recovery.
To repair that damage, the INFAPRO project was launched in the Ulu-Segama forestry management unit in eastern Sabah.
- The project has restored more than 25,000 hectares of logged-over rainforest.
- It was developed by Face the Future in cooperation with Yayasan Sabah, while Climate Impact Partners has supported the project and helped bring its credits to market.
Why Sabah’s Carbon Removals are Attracting Attention
What makes Sabah INFAPRO different is not only the size of the restoration effort. It is also the way the project measured carbon gains.

Many forest carbon projects issue credits in annual vintages based on year-by-year growth estimates. Sabah INFAPRO followed a different path. It used a landscape-scale monitoring system and waited until the forest moved through its strongest natural growth period before issuing removal credits.
- This approach gives the credits more weight. Rather than relying mainly on short-term annual estimates, the project measured carbon sequestration over a longer period. That helps show that the forest delivered real, sustained, and measurable carbon removal.
The scientific backing is also unusually strong. Since 2007, the project has maintained nearly 400 permanent monitoring plots. These plots have allowed researchers, independent auditors, and technical specialists to observe the full growth cycle of dipterocarp forest recovery. The result is a large body of field data that supports carbon calculations and strengthens confidence in the credits.
In simple terms, buyers are not just being asked to trust a model. They are being shown years of direct forest monitoring across the project landscape.
Strong Ratings Support Market Confidence
Independent assessment has also lifted the project’s profile. BeZero awarded Sabah INFAPRO an A.pre overall rating and an AA score for permanence. That places the project among the highest-rated Improved Forest Management, or IFM, projects in the world.
The rating reflects several important strengths. First, the project has very low exposure to reversal risk. Second, it has a long and stable operating history. Third, its measured carbon gains align well with peer-reviewed ecological research and independent analysis.
These points matter in today’s market. Buyers have become more cautious after years of debate over the quality of some forest carbon credits. As a result, they now look more closely at durability, transparency, and third-party validation. Sabah INFAPRO’s rating helps answer those concerns and makes the project more attractive to companies looking for credible carbon removal.
The project is also registered with Verra’s Verified Carbon Standard under the name INFAPRO Rehabilitation of Logged-over Dipterocarp Forest in Sabah, Malaysia. That adds another level of market recognition and verification.
A Wider Model for Rainforest Recovery
Sabah INFAPRO also shows why high-quality nature-based projects are about more than carbon alone. The restoration effort supports broader ecological recovery in one of the world’s most important rainforest regions.
Climate Impact Partners said it has worked with project partners to restore degraded areas, run local training programs, carry out monthly forest patrols, and distribute seedlings to support rainforest recovery beyond the project boundary. These efforts help strengthen the wider landscape and expand the project’s environmental impact.
That broader value is becoming more important for buyers. Companies increasingly want projects that support biodiversity, ecosystem health, and local engagement, along with carbon removal. Sabah INFAPRO offers that mix, making it a stronger fit for the market’s shift toward higher-integrity credits.

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Carbon Footprint
Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story
Bitcoin’s recent drop below $70,000 reflects more than short-term market pressure. It signals a deeper shift. The world’s largest cryptocurrency is becoming increasingly tied to global energy markets.
For years, Bitcoin has moved mainly on investor sentiment, adoption trends, and regulation. Today, another force is shaping its direction: the cost of energy.
As oil prices rise and electricity markets tighten, Bitcoin is starting to behave less like a tech asset and more like an energy-dependent system. This shift is changing how investors, analysts, and policymakers understand crypto.
A Global Power Consumer: Inside Bitcoin’s Energy Use
Bitcoin depends on mining, a process that uses powerful computers to verify transactions. These machines run continuously and consume large amounts of electricity.
Data from the U.S. Energy Information Administration shows Bitcoin mining used between 67 and 240 terawatt-hours (TWh) of electricity in 2023, with a midpoint estimate of about 120 TWh.

Other estimates place consumption closer to 170 TWh per year in 2025. This accounts for roughly 0.5% of global electricity demand. Recently, as of February 2026, estimates see Bitcoin’s energy use reaching over 200 TWh per year.
That level of energy use is significant. Global electricity demand reached about 27,400 TWh in 2023. Bitcoin’s share may seem small, but it is comparable to the power use of mid-sized countries.
The network also requires steady power. Estimates suggest it draws around 10 gigawatts continuously, similar to several large power plants operating at full capacity. This constant demand makes energy costs central to Bitcoin’s economics.
When Oil Rises, Bitcoin Falls
Bitcoin mining is highly sensitive to electricity prices. Energy is the highest operating cost for miners. When power becomes more expensive, profit margins shrink.
Recent market movements show this link clearly. As oil prices rise and inflation concerns persist, energy costs have increased. At the same time, Bitcoin prices have weakened, falling below the $70,000 level.

This is not a coincidence. Studies show a direct relationship between Bitcoin prices, mining activity, and electricity use. When Bitcoin prices rise, more miners join the network, increasing energy demand. When energy costs rise, less efficient miners may shut down, reducing activity and adding selling pressure.
This creates a feedback loop between crypto and energy markets. Bitcoin is no longer driven only by demand and speculation. It is now influenced by the same forces that affect oil, gas, and power prices.
Cleaner Energy Use Is Growing, but Fossil Fuels Still Matter
Bitcoin’s environmental impact depends on its energy mix. This mix is improving, but it remains uneven.
A 2025 study from the Cambridge Centre for Alternative Finance found that 52.4% of Bitcoin mining now uses sustainable energy. This includes both renewable sources (42.6%) and nuclear power (9.8%). The share has risen significantly from about 37.6% in 2022.
Despite this progress, fossil fuels still account for a large portion of mining energy. Natural gas alone makes up about 38.2%, while coal continues to contribute a smaller share.

This reliance on fossil fuels keeps emissions high. Current estimates suggest Bitcoin produces more than 114 million tons of carbon dioxide each year. That puts it in line with emissions from some industrial sectors.
The shift toward cleaner energy is real, but it is not complete. The pace of change will play a key role in how Bitcoin fits into global climate goals.
Bitcoin’s Climate Debate Intensifies
Bitcoin’s growing energy demand has placed it at the center of ESG discussions. Its impact is often measured through three key areas:
- Total electricity use, which rivals that of entire countries.
- Carbon emissions are estimated at over 100 million tons of CO₂ annually.
- Energy intensity, with a single transaction using large amounts of power.

At the same time, the industry is evolving. Mining companies are adopting more efficient hardware and exploring new energy sources. Some operations use excess renewable power or capture waste energy, such as flare gas from oil fields.
These efforts show progress, but they do not fully address the concerns. The gap between Bitcoin’s energy use and its environmental impact remains a key issue for investors and regulators.
- MUST READ: Bitcoin Price Hits All-Time High Above $126K: ETFs, Market Drivers, and the Future of Digital Gold
Bitcoin Is Becoming Part of the Energy System
Bitcoin mining is now closely integrated with the broader energy system. Operators often choose locations based on access to cheap or excess electricity. This includes areas with strong renewable generation or underused energy resources.
This integration creates both opportunities and challenges. On one hand, mining can support energy systems by using power that might otherwise go to waste. It can also provide flexible demand that helps stabilize grids.
On the other hand, it can increase pressure on local electricity supplies and extend the use of fossil fuels if cleaner options are not available.
In the United States, Bitcoin mining could account for up to 2.3% of total electricity demand in certain scenarios. This highlights how quickly the sector is scaling and how closely it is tied to national energy systems.
Energy Markets Are Now Key to Bitcoin’s Future
Looking ahead, the connection between Bitcoin and energy is expected to grow stronger. The network’s computing power, or hash rate, continues to reach new highs, which typically leads to higher energy use.
Electricity will remain the main cost for miners. This means Bitcoin will continue to respond to changes in energy prices and supply conditions. At the same time, governments are starting to pay closer attention to crypto’s environmental impact, which could shape future regulations.

Some forecasts suggest Bitcoin’s energy use could rise sharply if adoption increases, potentially reaching up to 400 TWh in extreme scenarios. However, cleaner energy systems could reduce the carbon impact over time.
Bitcoin is no longer just a financial asset. It is also a large-scale energy consumer and a growing part of the global power system.
As a result, understanding Bitcoin now requires a broader view. Energy prices, electricity markets, and carbon trends are becoming just as important as market demand and investor sentiment.
The message is clear. As energy markets move, Bitcoin is likely to move with them.
The post Bitcoin Falls as Energy Prices Rise: Why Crypto Is Now an Energy Market Story appeared first on Carbon Credits.
Carbon Footprint
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