Investing in Nickel Stocks

Nickel is a commodity that has drawn investor attention over the past few years. As with other materials used in manufacturing, nickel prices rose sharply coming out of the lockdowns from the COVID-19 pandemic. Over the past year, however, prices have trended lower as fears of an economic downturn have led investors to surmise that manufacturing will soon slow down and curb demand for the metal.

Nonetheless, its importance in various sectors of the global economy suggests that nickel mining stocks continue to be worth investigating for people with long-term investing horizons.

Investing in nickel stocks

Investing in nickel stocks

Nickel is a widely used metal in the manufacturing world. It’s a primary ingredient in stainless steel and is prized for its resistance to corrosion. Nickel is also one of the most abundant resources.

Demand is on the rise as nickel also is put to ample use in the semiconductor industry. One of the highest-growth areas for this common elemental metal is in electric vehicles (EVs). EV batteries need almost pure nickel to manufacture cathodes (the negatively charged part of a battery). With EV production rapidly on the rise, nickel could be a top commodity investment during the next decade.

Investing in nickel stocks can be tricky, though. Mining businesses are cyclical, and stock prices can ebb and flow with the market price for nickel. Russia’s invasion of Ukraine has also put pressure on global supplies of nickel and other commodities. Investing in a basket of nickel stocks could be advisable.

With that in mind, here are five nickel stocks to consider for 2025:

1. Glencore

1. Glencore

Switzerland-based Glencore is a global metal mining giant. It’s involved with energy production, recycling, agricultural products, and mining assets. Its operations include copper and cobalt mines (another resource used in EV batteries) and, of course, nickel. Glencore is one of the world’s top producers of nickel, with mines in Canada, Europe, and Australia.

For investors in the United States, bear in mind that Glencore is not directly listed on a U.S. stock exchange. Glencore is listed on the London Stock Exchange, but shares can be purchased in the U.S. over the counter (OTC). There are certain risks involved in owning shares of a company like this. Keep in mind that Glencore has not generated the same lofty profit margins as leading peers such as BHP Group (BHP -0.06%), and the dividend hasn’t grown all that much over the past decade.

2. Vale

2. Vale

Vale is a Brazil-based mining conglomerate and one of the top metal miners. Nickel is one of Vale’s specialties. The company claims it’s the largest producer of nickel -- passing Russia’s Norilsk Nickel (OTC:NILSY), which is currently dealing with sanctions related to the invasion of Ukraine.

Vale has a long history as a top supplier, transporter, and refiner of metals such as nickel. For investors looking for exposure to this key ingredient in manufacturing and technology, its stock is worth considering. Vale is a cyclical business, but it generates healthy profit margins that are used to pay a dividend and repurchase stock to boost shareholder value.

3. Anglo American

3. Anglo American

U.K.-based Anglo American is another large mining conglomerate. Some of its operations are best known for platinum production, another industrial metal. Diamonds are also a top source of revenue for the company. But substantial nickel mining and refining operations that serve the global stainless steel market are among Anglo American’s assets.

Anglo American’s nickel sites are located in Brazil. As base material prices have risen in recent years, the company’s revenue and earnings before interest, taxes, depreciation, and amortization (EBITDA) margins have sharply increased, as well (averaging more than 29% annually from 2020 through 2024).

In 2024, Anglo American produced 37,000 metric tons of nickel, and management forecasts nickel production of 37,000 metric tons to 39,000 metric tons in both 2025 and 2026. As a result, Anglo American represents another top stock for investors seeking exposure to nickel.

4. South32

4. South32

Australian-based South32 represents another top nickel producer for investors to consider. Spun off from former parent BHP Group in 2015, the company also has mines that produce aluminum, zinc, lead, silver, and more.

Although small and with limited stand-alone operating history, South32 has done well. The company is profitable and pays a dividend. It also has plenty of cash and investments and minimal debt on its balance sheet, making it a solid stock for investors looking for a smaller company with expansion potential.

5. Eramet

5. Eramet

The smallest stock on this list based on market capitalization, Eramet, whose history stretches back to 1880, is a French company that has diversified mining operations including manganese, mineral sands, nickel, and lithium. In addition to nickel mining operations in New Caledonia, Eramet operates Weda Bay Nickel in Indonesia -- a project that Eramet characterizes as the world's largest nickel mine.

Nickel figures prominently in the company's financials. In 2023, Nickel provided free cash flow (FCF) of 253 million euros -- the most of any material it produced that year -- and in 2024, nickel accounted for FCF of 98 million euros.

Related investing topics

Nickel is cyclical

Nickel mining stocks are cyclical

There is a lot of promise for nickel stocks with the metal’s use in semiconductors, EV batteries, and other technology advances in the decade ahead. But bear in mind that this is a highly cyclical sector of the economy. Commodity prices are sensitive to supply and demand, and mining stock prices can be incredibly volatile and unpredictable.

Even so, demand for nickel and other metals isn’t going away. For investors who want to bet on base materials used in today’s leading tech and get dividends along the way, there’s a lot to like about nickel stocks right now.