Vietnam is stepping onto the global stage as a rising nickel powerhouse, thanks to a carefully planned Vietnam Nickel Reserve Strategy. With total reserves estimated at 3.6 million tons of metallic nickel, Vietnam holds an important position in Southeast Asia’s nickel supply chain. These reserves are mainly concentrated in Thanh Hoa (3,067,020 tons), Son La (420,523 tons), and Cao Bang (133,677 tons), making Vietnam a critical supplier amid global trade shifts and rising demand for electric vehicle (EV) batteries.
Government-Driven Nickel Development
The Vietnam Nickel Reserve Strategy has been a major national focus since 2018, when the government approved a plan to expand nickel mining and processing by 2025. Under this plan, Vietnam targets an output of 118,000 tons of nickel concentrate and aims to operate two nickel factories with a combined annual output of 8,000 to 11,000 tons.
Most of Vietnam’s nickel exists as accompanying minerals in chromium ore, which presents challenges in recovery and processing. This has pushed Vietnam to focus on advanced deep-processing technologies, including the production of nickel salts, which are essential for EV battery manufacturing.
Vietnam Nickel Reserve Strategy & Global EV Battery Demand
Globally, nickel demand for batteries currently accounts for about 4% of world production, but this figure is set to rise sharply as electric vehicles become mainstream. Recognizing this trend, Vietnam has taken proactive steps to position itself as a vital supplier of nickel for batteries.
Vietnam’s nickel exports were valued at about US$15.54 million in 2023, and they are projected to grow steadily to approximately US$2.4 million by 2028, reflecting an annual growth rate of 2.8%. While these numbers may seem modest, they highlight Vietnam’s potential to serve major markets such as China, which is rapidly increasing its nickel reserves to secure raw materials for its booming EV industry.
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Vietnam’s Rising Export and Domestic Demand
Since 2007, Vietnam’s nickel supply has increased by an average of 4.5% annually, while domestic demand has grown at a rate of 5.4% per year. This dual growth indicates not only strong export potential but also a robust internal market that supports the Vietnam Nickel Reserve Strategy.
The country’s plan to integrate nickel deep-processing technologies will further strengthen its role in the global supply chain. As a result, this will ensure that Vietnam can provide high-quality nickel products tailored for advanced uses, including EV battery cells.
Strategic Fit With China’s EV Push
China has intensified efforts to secure more nickel resources globally, particularly to support its aggressive EV expansion. As China diversifies its sourcing, Vietnam stands out as a reliable partner, thanks to its large reserves and ongoing investments in processing capabilities.
Vietnam’s strategic move to develop domestic nickel supply chains aligns well with China’s need for stable, high-quality nickel sources for battery production. This creates a win-win scenario: Vietnam gains a strong market for its nickel exports, and China strengthens its supply security for critical EV components.
Vietnam Nickel Reserve Strategy: Future Outlook
Vietnam’s 3.6 million tons of nickel reserves place the country in an increasingly influential position in the global nickel market. This is also combined with a focused national strategy and growing export potential.
As the share of nickel used in EV batteries continues to rise, the Vietnam Nickel Reserve Strategy ensures that Vietnam is not just a raw material supplier but an emerging key player in the global green transition.
