[SMM Nickel Market Flash] South Korea Asks Indonesia for Nickel-Battery Incentives and Policy Predictability

US-backed investment firm Orion CMC is reportedly weighing an investment of about $500m in Tanzania's Kabanga nickel project, according to Bloomberg as cited by Ecofin Agency and carried by other outlets on August 25. Talks between Tanzania and operator Lifezone Metals over the project's financial and ownership framework have moved more slowly than expected, pushing the final investment decision to Q1 2027. Lifezone holds 84% and the government 16% under a 2021 agreement, with amendments to the development structure and benefit-sharing under discussion. Kabanga needs about $942m of construction capital and, per its feasibility study, would produce roughly 902 kt of nickel, 134 kt of copper and 69 kt of cobalt over an 18-year life. The US DFC has previously signalled financing interest.

Tokyo-based stainless steel maker Nippon Kinzoku has begun mass production of ultra-thin, narrow-width stainless steel optimised for laser welding in ultra-fine insulin needles, the company said in a statement carried by Bernama on August 27. It said a stable supply system is now in place after trials with leading needle makers. The needle industry is shifting from TIG or plasma welding to laser welding, which allows faster welding and base material more than 50% thinner at the initial stage — 0.08 mm versus 0.2 mm previously — supporting wider use of 30G to 32G needles in pen injectors. Its NK-304NKM grade, used in thin-walled welded tube for medical and cosmetic uses, holds about 57% share in Japan and 55% in key overseas regions, per company research in March 2026.

Nickel Industries (ASX: NIC) said in its H1 2026 results that Indonesia's HPM benchmark reform sharply raised realised ore prices at its 80%-held Hengjaya Mine, with the average sale price up 28% YoY to US$31.3/wmt — saprolite up 55% to US$40.4/wmt while limonite eased 8% to US$21.2/wmt. Unit operating costs rose 50% to US$18.7/wmt on higher royalties under the new HPM, cutting the EBITDA margin from 49% to 40%; adjusted EBITDA rose just 4% to US$73.4m on flat sales of 5.9m wmt, achieved despite a 14-day suspension. NIC also flagged a 2026 RKAB quota of 14.3m wmt, up 60%, which it said compares favourably with peers.