As tensions between the United States and China intensify, it has been reported that China is stockpiling nickel, a key mineral used in electric vehicle batteries. As supply chain diversification becomes a critical issue not only in China but also globally, expectations are rising for benefits to related domestic companies.
According to recent foreign media reports, China is estimated to have purchased up to 100,000 tons of pure nickel since December of last year. Data from the General Administration of Customs of China shows that from the beginning of this year until May, China purchased 77,654 tons of pure nickel. Industry sources previously estimated that China’s nickel reserves were between 60,000 and 100,000 tons before last year. With these additional purchases, the reserves have at least doubled or even tripled in size.
The European Union is also moving quickly. According to a draft document of the European Commission’s “stockpiling strategy,” the EU plans to accelerate the stockpiling of critical minerals such as rare earth elements and nickel. The aim is to reduce dependence on foreign sources for specific materials and to maintain essential industries and social systems even in times of crisis.
As countries around the world move to stockpile critical minerals, there is growing interest in companies that have secured supply chains for key minerals such as nickel and lithium.
POSCO Holdings is focusing on securing a lithium supply chain. To build a North American lithium supply network, the company has launched a demonstration project to test and verify direct lithium extraction (DLE) technology locally in North America. Through the successful operation of a demo plant in the United States, POSCO Holdings aims to commercialize the DLE technology it has independently developed since 2016, and actively utilize it for investments and business development in undeveloped lithium brine lakes in North America.
LX International began its mineral business in 2023 by acquiring a stake in a nickel mine in Indonesia. Since then, the company has been advancing its business by increasing nickel production, linking with ports, and conducting exploration projects. It is also considering the acquisition of copper mines, accelerating its transition to a portfolio centered on strategic minerals.
Jaysco Holdings is developing nickel mines in the Philippines. Recently, the company signed a contract with China Poly Energy to supply at least 8 million tons of nickel ore from the Philippines. In particular, Jaysco Holdings has been continuously negotiating nickel ore supply with global companies, especially those based in China and Hong Kong. The nickel ore supplied by Jaysco Holdings is refined through a smelting process into pure nickel with a purity of over 99%, which is then used in high value-added industries such as batteries, electronic materials, and stainless steel.
Additional supply contracts are reportedly becoming visible. Last month, Jaysco Holdings signed a memorandum of understanding (MOU) with Pacific Infinity Resources Limited (PIRL) of Hong Kong and completed an on-site due diligence of the Philippine nickel mine. PIRL is a company with a high level of understanding of the mine in question.
An industry official stated, "The sharp increase in China’s nickel imports is a strategic move to proactively respond to supply chain disruption risks," adding, "In the future, companies that have internalized everything from raw material procurement to distribution will gain real market dominance."
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