We recently compiled a list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where BHP Group Limited (NYSE:BHP) stands against the other nickel stocks.
Nickel is a metal that is used extensively in manufacturing. It is a key component of stainless steel and is valued for its corrosion resistance. It is also among the most abundant resources. According to the International Nickel Study Group, primary nickel production will rise by 4.6% globally in 2024 and then by an additional 3.8% in 2025. About 150,000 tonnes of nickel will be in excess globally in 2025, according to Nornickel, mostly in high-grade nickel segments.
The nickel industry is booming. As per Fortune Business Insights, the size of the global nickel market was estimated at $41.61 billion in 2023 and is projected to keep growing at a compound annual growth rate (CAGR) of 7.3%, from $44.59 billion in 2024 to $73.15 billion by 2032. In 2023, Asia Pacific held an 82.62% market share, dominating the nickel market. Furthermore, it is anticipated that the nickel market in the United States will expand to a size of $2.01 billion by 2032, led by the electric vehicle industry, continuous infrastructure projects, and strong demand from the production of stainless steel.
However, nickel stock investing might be challenging. Mining businesses are cyclical, and stock prices fluctuate in line with the market price of nickel. Fears of a recession and a decline in industrial demand have caused nickel prices to fluctuate in early 2025, dropping from around $17,000 per metric ton to less than $16,000 in March, according to S&P Global Commodity Insights. Since nickel is necessary for NCM and NCA batteries in electric vehicles, the long-term demand picture is still favorable. Through 2030, the demand for nickel from EV batteries is anticipated to increase by 15% to 20% globally (IRENA). Long-term supply agreements have been negotiated by two major automakers to guarantee access to battery-grade nickel.
That said, prices have been under pressure due to the expansion in supply, particularly from Indonesia, which produced over 1.6 million metric tons in 2024 and accounts for about 50% of the global supply. Despite high costs and environmental concerns, Indonesia’s export prohibition and the growth of HPAL projects are changing the supply chain landscape. Although environmental and legal barriers exist, the Philippines is also increasing its output. The market is further complicated by geopolitical concerns. Western sanctions are forcing Russian supplies to reroute to China, while the EU looks for alternatives in countries like Canada and Australia. Trump’s plans, which include possible tariffs on Chinese nickel, have placed an intense focus on essential resource extraction in the United States. LME 3M nickel prices are expected to average $16,026/t in 2025, according to S&P Global, with supply disruptions and changes in trade policy being the main concerns.
According to the latest report by S&P Global, in light of growing uncertainty from tariff-led global trade tensions, the Asian nickel market may continue to face pressure in the months ahead. This will be due to a supply surplus fueled by higher Indonesian production levels and weak demand from key nickel-consuming industries, such as electric vehicles and stainless steel. Jason Sappor, metals and mining research senior analyst at S&P Global Commodity Insights, stated:
“Amid an unstable global macroeconomic backdrop, we expect the global primary nickel market to remain oversupplied in 2025, with production from Indonesia forecast to expand further this year, despite challenges like tight nickel ore availability and a potential royalty rate hike on nickel products by the government,”
“A slowdown in global economic activity would dent global primary nickel demand in a market already grappling with oversupply,” “further evolutions in the Trump administration’s trade tariff policies, we expect nickel prices to remain volatile in the near term.”
An aerial view of a mining operation in action, with large trucks and yellow diggers.
Our Methodology
For this article, we sifted through the online rankings to form an initial list of the 20 Nickel Stocks. From the resultant dataset, we chose 12 stocks with the highest number of hedge fund investors, using Insider Monkey’s database of 1,009 hedge funds in Q4 2024 to gauge hedge fund sentiment for stocks. We have used the stock’s market cap as of April 25, 2025, as a tie-breaker in case two or more stocks have the same number of hedge funds invested.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
BHP Group Limited (NYSE:BHP)
Number of Hedge Fund Holders: 28
One of the biggest mining firms in the world, BHP Group Limited (NYSE:BHP), is expanding its business to produce more nickel, making it one of the Best Nickel Stocks. Nickel West, based in Western Australia, is a fully integrated business that includes mining, smelting, and refining. This business specializes in manufacturing premium nickel materials made especially for the supply chain of EV batteries.
In 2024, BHP Group Limited (NYSE:BHP)’s Nickel West produced over 80,000 metric tons of nickel, with 85% of that being used by EV battery manufacturers. The company’s low-carbon production methods, backed by investments in renewable energy, show its dedication to sustainability. For example, the firm recently announced a 50% decrease in greenhouse gas emissions at Nickel West by 2030, which is consistent with its overall decarbonization ambitions.
Through several programs, BHP Group Limited (NYSE:BHP) is also stepping up its exploration efforts to safeguard future nickel resources. Among these is the West Musgrave Project, which it added to its portfolio after purchasing OZ Minerals in May 2023. Although this project is still in its early phases, when it is finished, it should greatly increase the company’s nickel production.
Over the next five years, BHP Group Limited (NYSE:BHP) plans to upgrade its facilities and raise its nickel production capacity by spending billions of dollars. This includes improving the Kalgoorlie Nickel Smelter and Kwinana Refinery, as well as developing the Venus nickel deposit. The goal of these initiatives is to satisfy the growing demand for premium Class 1 nickel, which is necessary for lithium-ion batteries.
Overall, BHP ranks 6th on our list of the 12 Best Nickel Stocks to Buy According to Hedge Funds. While we acknowledge the potential of Nickel companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than BHP but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.
