According to a Forbes report, the nickel business has become so lucrative that billionaire Kiki Barki, who built his fortune in coal mining, is now steering his Harum Energy toward nickel. Harum accelerated its nickel expansion this year through a series of strategic deals. Meanwhile, nickel prices ended 2024 below their 2023 close.
Harum Makes Major Plays Amid Low Nickel Prices In January, Harum boosted its stake in Indonesian nickel smelter Westrong Metal Industry to nearly 81% at a cost of $215 million. By April, its subsidiary, Tanito Harum Nickel THN, had acquired a 51% stake in Blue Sparking Energy for $206 million. While still under development, the refining facility aims to produce 67,000 tons of nickel annually by 2026. Harum also partnered with Chinese metal tycoon Xiang Guangda's Eternal Tsingshan Group back in September, with Tsingshan acquiring a 49% stake in Harum's nickel units. According to a Nomura report, the collaboration with Tsingshan will not only enhance production but also open doors to future asset opportunities. Nickel and EVs Something's Happening In regions like North America, the nickel industry continues to grapple with a combination of weak demand and oversupply. Reports attribute this to anticipated high nickel prices driven by the expected boom in the EV market not panning out. Another factor is that Chinese companies are currently developing batteries that do not rely on nickel. In fact, several Chinese firms are now touting these Lithium ferro-phosphate models as an alternative to nickel-based EV batteries. The composition of LFP batteries is primarily iron phosphate combined with lithium, which grants them several notable advantages over their nickel-based competitors. One of the most significant benefits is their reduced environmental impact. As they utilize iron and phosphate, LFP batteries are reportedly less harmful to local ecosystems and communitie