From Yahoo Finance: 2025-04-28 11:19:00

The nickel industry is booming, with primary nickel production projected to rise globally by 4.6% in 2024 and an additional 3.8% in 2025. The global nickel market size was $41.61 billion in 2023, expected to reach $73.15 billion by 2032. Asia Pacific dominates the market, with the U.S. market projected to grow to $2.01 billion by 2032.

Despite challenges in nickel stock investing due to market fluctuations, long-term demand remains strong, especially from the electric vehicle industry. Prices have fluctuated in early 2025, dropping from $17,000 to less than $16,000 per metric ton in March. Supply agreements ensure access to battery-grade nickel for EV batteries.

The nickel market faces challenges from supply expansion, particularly from Indonesia, which produced over 1.6 million metric tons in 2024. Geopolitical concerns, such as Western sanctions on Russian supplies, impact the market. LME 3M nickel prices are expected to average $16,026/t in 2025, with supply disruptions and trade policy changes being key concerns.

According to S&P Global, the Asian nickel market may face pressure due to a supply surplus fueled by higher Indonesian production levels and weak demand from key industries. The global primary nickel market is expected to remain oversupplied in 2025, with potential further challenges from global trade tensions and economic slowdown.

Rio Tinto Group (NYSE:RIO) is a multinational mining conglomerate, ranking 3rd on the list of 12 Best Nickel Stocks to Buy According to Hedge Funds. The company invested $10.3 billion in Western Australia in 2024 for mining projects. It completed the $6.7 billion purchase of Arcadium Lithium on March 6, aiming to enhance its lithium assets.

Overall, RIO is a promising nickel stock, but AI stocks may offer higher returns within a shorter timeframe. Insider Monkey’s research has shown that imitating top hedge fund picks can outperform the market, with a strategy that has returned 275% since May 2014. Check out the report on the cheapest AI stock for potential gains.

Read more: Is Rio Tinto Group (RIO) Among the Best Nickel Stocks to Buy According to Hedge Funds?