Forrest-backed Wyloo ready for nickel revival

Andrew Forrest-owned Wyloo is positioning itself for nickel’s slated resurgence.

With interests in rare earths and gold, the company is also focused on developing high-grade nickel projects in Western Australia, including its Kambalda operation and Plumridge project.

In an interview with Australian Resources & Investment, Wyloo chief executive officer Luca Giacovazzi shared his insights on the market and the company’s strategy.

“If you take a step back and look at the demand, it has been growing consistently over the last ten years,” Giacovazzi said.

“We see nickel as a core part of the clean energy transition and essential for EV batteries and renewable energy storage. The long-term fundamentals remain strong despite the recent price volatility.”

Battery nickel demand is expected to triple by 2030, according to Benchmark estimates.

“While softer-than-expected demand and massive supply-side expansions have helped drag nickel prices to their lowest level since 2020, battery nickel demand is set to record strong growth of 27 per cent year-on-year in 2024,” Benchmark said.

“Long-term demand prospects remain bullish: Benchmark projections indicate that nickel-based chemistries will capture 85 per cent battery cell production capacity outside of China by 2030, with production increasingly pivoting towards high-nickel chemistry longer-term.”

The nickel market has faced challenges, with an oversupply from Indonesia causing a price slump. This prompted BHP to suspend its Nickel West operations in WA, while Wyloo was forced to halt its Kambalda operation.

“Indonesia has played a huge role in bringing new supply online, which has impacted the nickel price in the short term,” Giacovazzi said.

“The market has seen too much supply too quickly, but you’re starting to see that really slow down and balance out.”

Alongside a suite of assets in Canada, including the fancied Eagle’s Nest project, Giacovazzi said Wyloo remains focused on WA nickel.

“We’ve been deliberate about where we invest,” Giacovazzi said. “Western Australia is a Tier 1 jurisdiction with some of the best nickel sulphide resources in the world and we want to produce the best nickel for the global market.”