Australia’s Nickel Reset: Can “Green Metal” Pay Off?

A year after BHP’s nickel halt, Australia shifts focus to cleaner, traceable production

30 Oct 2025

Australia’s nickel sector is reshaping its strategy a year after BHP halted its Nickel West operations, following a steep fall in prices and a surge in Indonesian supply. The temporary suspension, announced in mid-2024 and formalised in October, placed the business under care and maintenance until at least 2027. The move ended a decade-long expansion phase but prompted a wider effort to redefine the industry’s global role.

Attention has since turned to developing “green nickel,” a lower-carbon, traceable version of the metal designed to meet rising sustainability demands from battery and electric vehicle manufacturers in Europe and North America. The concept, still without a formal standard, focuses on verifying environmental and ethical performance across the supply chain.

“The question is not how much nickel Australia can produce, but how cleanly and transparently it can deliver it,” said Perth-based analyst Peter Finn.

Canberra has begun aligning policy and funding with this shift. Nickel was added to the federal Critical Minerals List in early 2024, granting producers access to the A$4bn Critical Minerals Facility if they pursue verified low-emission operations. Research initiatives such as the Future Battery Industries Cooperative Research Centre are developing models for traceability and environmental certification, though no national framework has yet been adopted.

Investors are cautiously returning, exploring ways to retrofit idle sites with renewable-powered processing and digital carbon-tracking systems. These efforts suggest a transition from volume-based growth to value creation through sustainability credentials.

Verification costs and uncertain price premiums continue to pose hurdles, but industry leaders view transparency as essential to maintaining global relevance.

In retrospect, BHP’s decision marked more than a market correction. It signalled the start of a structural pivot toward cleaner production and greater accountability, a shift that may determine how Australia competes in the next phase of the global battery supply chain.