New Caledonia has been under French control since 1853. However, recent French approval of a change to its constitution that may dilute the representation of the island’s indigenous people has sparked violent protests that have impacted transportation, including its international airport. The 7,200 square mile archipelago is the world’s fourth largest producer of nickel and accounts for about one quarter of the world’s nickel reserves. It is the source for about 25% of the nickel used in ferronickel, a key input material to stainless steel production.
Nickel is currently reasonably available due to lower than expected electric vehicle demand, but its future criticality is underscored by French President Macron’s 10,000 mile flight to meet with stakeholders in New Caledonia. This all comes as China continues to sew up nickel production facilities in Indonesia, the world’s largest producer.
In our Aerospace Nickel report, AeroOutlook assesses the upstream risks not only of New Caledonia and Indonesia but also the other nations that supply nickel. And we do the same for all the other elements (cobalt, chromium, etc.) that are used to make aerospace nickel alloys.
