Sphere Invests in Indonesian Nickel Project to Secure 10% Stake

South Korean alloy producer Sphere has acquired a 10% ownership and offtake stake in Indonesia’s Excelsior nickel project.
The project, producing 72,000 t/yr of nickel cathode, sulphate, and mixed hydroxide precipitate (MHP), is set to begin production between April and June 2026.
Sphere will receive 10% of Excelsior’s nickel output as cathode, while signing an additional market-priced offtake agreement.

Excelsior is currently a joint venture between Nickel Resources and Chinese producer Decent Resource.
Sphere’s stake comes from Decent Resource’s share, providing Sphere direct access to Indonesian nickel for aerospace applications.
Sphere supplies nickel metal and alloys to multiple global aerospace manufacturers, including a 10-year agreement with US aerospace company SpaceX.

Sphere’s Nickel Investment Strengthens Aerospace Supply Chains

Sphere’s acquisition ensures a secure supply of nickel for high-value alloy production.
Nickel is critical for aerospace alloys due to its strength, corrosion resistance, and high-temperature performance.
As demand rises, Sphere’s investment allows long-term supply certainty amid evolving Indonesian export regulations.

Indonesia issued new mineral export benchmark price regulations, prompting concerns of export taxes on processed nickel products.
Domestic MHP production rose 64% year-on-year in January-September 2025, with plans to expand capacity by 658,000 t/yr through 2027.
Nickel prices reflect tight supply, with Argus’ MHP 37% min fob Indonesia price reaching $132.50/mtu in late December.

Market Implications of Sphere’s Nickel Stake

This move highlights the strategic importance of nickel for aerospace and high-tech alloys.
Global aerospace and EV industries rely on stable nickel supply amid growing demand for batteries and high-performance metals.
Sphere’s investment signals confidence in Indonesia’s nickel sector and supports long-term alloy production planning.

SuperMetalPrice Commentary:

Sphere’s 10% stake in Excelsior underscores the growing trend of vertical integration in strategic metals.
Securing upstream nickel supply protects aerospace and high-performance alloy producers from price volatility and geopolitical risks.
Investors and industry stakeholders should watch Indonesia’s export policies and MHP price trends closely in 2026.