Nornickel, the world’s leading producer of refined nickel and palladium, is actively exploring a joint venture (JV) in China, a move aimed at strengthening its foothold in the global metals market. This venture is designed to meet the growing demand for raw materials, particularly those required for the green energy transition, underscoring Nornickel’s ambition to expand its influence in the world’s largest metal-consuming market.

While specific details remain under wraps, sources familiar with the matter suggest that Nornickel is in discussions with Chinese conglomerate Xiamen C&D to form a JV focused on processing Nornickel's raw copper materials into refined metal within China. This partnership promises a strategic advantage by directly integrating Nornickel’s production into China’s expansive manufacturing sector, which is witnessing a rapid surge in demand for metals critical to industries like electric vehicles (EVs), renewable energy storage, and electronics.

The proposed JV aligns perfectly with Nornickel's broader strategy of expanding its global reach. In 2025, the company plans to sell its entire production output, positioning itself as a dominant force in the global metals market despite ongoing economic uncertainties. Nornickel anticipates a global nickel surplus of about 150,000 tons in 2025, while also forecasting a balanced palladium market during the same period, signalling confidence in the strategic direction the company is taking.

This collaboration with China makes sense given the country’s dominant role as the largest global consumer of nickel and palladium—two metals essential for EV batteries, electronics, and energy storage solutions. As China pushes toward its green energy goals, demand for these metals is expected to grow exponentially. The JV would not only secure Nornickel’s place in this dynamic market but also offer a hedge against the volatility of global metal prices by locking in long-term supply agreements with a powerful Chinese partner.

It signifies a critical step in Nornickel's diversification strategy, especially as it looks to mitigate risks tied to fluctuations in metal prices. China's robust push for electric vehicles and sustainable energy infrastructure positions it as an indispensable market for Nornickel’s high-quality raw materials. The potential partnership could help meet the supply chain challenges facing China’s expanding green energy initiatives.

The JV would likely provide China with a reliable and steady supply of refined copper, nickel, and palladium, all of which are crucial for powering the next generation of EVs, advanced battery technologies, and renewable energy infrastructure. This move would significantly strengthen both Nornickel’s global position and China’s efforts to ensure a steady flow of the essential raw materials needed for its green energy ambitions.

The unfolding negotiations are likely to have a profound impact on both companies and the broader global metals market. It could help both Nornickel and China secure their places in the rapidly evolving green energy sector, further accelerating the global transition toward sustainable energy solutions.