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 Sibanye Stillwater Limited (NYSE:SBSW) 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.”
A mining truck loaded with precious metals in an open pit mine.
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).
Sibanye Stillwater Limited (NYSE:SBSW)
Number of Hedge Fund Holders: 18
Market cap as of April 25: $3.29 billion
Sibanye Stillwater Limited (NYSE:SBSW) is a mining and metals processing company based in South Africa that has a wide range of projects, activities, and investments spread over five continents. The Group also has holdings in mine tailings retreatment activities and is one of the leading recyclers of PGM autocatalysts. The firm is a leading producer of gold and also produces palladium, rhodium, and platinum. It also manufactures and refines copper, cobalt, nickel, chromium, ruthenium, and iridium. PGMs, chrome, nickel, zinc, gold, and other metals are among its products, making it one of the Best Nickel Stocks.
Sibanye Stillwater Limited (NYSE:SBSW) is investing in new industries like lithium in addition to its core mining operations. The company is positioned to benefit from the rising demand for minerals used in the production of electric vehicles because it owns what is allegedly the largest lithium mine in Europe and runs a battery recycling facility. Byproducts of its mining operations, such as uranium and chromium, also bring in revenue for the business. The company recently joined a joint venture for the Beisa uranium project, which might yield significant benefits if uranium prices increase. Moreover, it has raised $500 million through a streaming agreement with Franco-Nevada to pre-sell gold and PGMs from its South African operations. The business also owns 50% of DRD Gold, which has a market valuation of about $1 billion.
The investment in battery materials and precious metals by Sibanye Stillwater Limited (NYSE:SBSW) coincides with long-term trends in traditional investment demand and a shift toward green energy. The company’s investments in battery metals should generate substantial returns as the EV industry expands. At the same time, amid a downturn in the economy, the firm’s well-established holdings in PGMs and gold provide exposure to metals with industrial uses and investment appeal.
Overall, SBSW ranks 9th on our list of the best nickel stocks to buy according to hedge funds. While we acknowledge the potential of SBSW as an investment, 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 SBSW but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
