Nickel Prices Rally to Near Two-Year High as Indonesia Supply Crunch Hits Battery Metal Market

Nickel prices have surged to their highest level in nearly two years, reaching $19,587 per tonne in early May 2026 before settling around $18,800. The rally is driven by Indonesia tightening mining quotas, which has cut supply of a metal critical for electric vehicle batteries and energy storage systems. Indonesia supplies roughly half to two-thirds of global nickel, so its policy shifts have an outsized impact on the market. For anyone tracking the clean energy transition, this matters because nickel is a key input for lithium-ion batteries used in EVs and grid storage. Higher nickel prices could raise battery costs and slow deployment timelines. The article also highlights Alaska Energy Metals Corporation (AEMC) as a potential beneficiary, since it is developing a nickel project outside of Indonesia's supply chain. The piece is worth reading for its clear breakdown of how a single country's mining policy can ripple through global supply chains and affect the economics of decarbonization. It connects commodity market dynamics directly to the cost and availability of clean energy technology.