The Philippine Nickel Industry Association (PNIA) said the country remains a key supplier, with its members accounting for about 73% of national output, totaling 37.81 million dry metric tons (DMT) in 2025.

“The Philippines remains a major player in the global nickel market,” said Charmaine Olea-Capili.

Nickel demand is expected to grow steadily, driven by electric vehicles, renewable energy, and infrastructure, according to the International Energy Agency.

The Philippines, which ranks sixth in global nickel reserves, continues to supply key markets, with China accounting for 66% of exports in 2025—down from 78% in 2024 as buyers diversify sourcing.

PNIA cited opportunities from supply chain diversification, emerging market demand, and increased investments in processing. However, near-term risks include potential oversupply, evolving battery technologies, and slower EV adoption.

Recent policy reforms, including Republic Act No. 12253, are expected to improve the investment climate by providing a clearer fiscal regime.

At the same time, the industry is advancing ESG initiatives and regional cooperation, including collaboration with Indonesia to strengthen supply chains. PNIA said continued improvements in infrastructure, energy readiness, and policy alignment will be key to sustaining growth.

Published with Filipino environmental group Alyansa Tigil Mina (ATM), the report traces nickel ore from mining operations in Cantilan, Surigao del Sur, to major Chinese metal traders that supply battery and stainless-steel producers serving some of the world’s largest automakers.

Investigators documented how a rapid expansion of nickel mining in the biodiverse coastal town has resulted in deforestation, river pollution, and food insecurity.

Residents told researchers they had watched once-clear waterways “turn brown,” seen fish stocks collapse, and suffered declining rice harvests as mountainsides were stripped bare.

Through value-chain mapping, the investigation traced nickel ore from Marcventures Mining and Development Corporation to Chinese traders that supply manufacturers linked to global car brands including Audi, BMW, Hyundai, Mercedes-Benz, Tesla and Volkswagen.

The report does not allege that the companies have breached existing laws, but campaigners argue the findings expose the failure of voluntary corporate standards to prevent harm.

The Philippines is the world’s largest exporter of raw nickel, a critical mineral for electric vehicle batteries. It is also the deadliest country in Asia for environmental defenders.

Global Witness lead investigator Hanna Hindstrom said: “The transition to clean energy cannot be built on pillaged ecosystems, intimidation, and the destruction of communities. Our investigation shows that nickel used in electric-vehicle batteries may be tied to environmental devastation and the silencing of those who dare to resist.

“Our findings speak to an uncomfortable but urgent truth: without value chain accountability, the rush to decarbonise will entrench new forms of exploitation. What kind of green transition are we willing to accept, and at whose expense?”

“We support the aspirations of the government for a more developed nickel industry; however, an export ban is not a timely policy at the moment,” said PNIA President Atty. Dante R. Bravo.

He said government needs to first create a business-friendly environment to attract investments and enable value-added processing.

“A proposal like the ore export ban is appealing, but if implemented now, it overlooks regulatory and business challenges that make value-added processing difficult in the Philippines,” Bravo said.

Bravo pointed to Indonesia’s successful ore ban, which significantly increased its export value of nickel products. However, he stressed that Indonesia implemented the policy only after securing investors, infrastructure, and strong government support.

“It takes over ten years to approve mining permits in the Philippines, forcing investors to look elsewhere,” Bravo said. “If we want to replicate Indonesia’s success, we need to address these fundamental issues first.”

PNIA warned that forcing value-added processing without addressing regulatory burdens and infrastructure gaps could lead to mine closures, job losses, and reduced government revenues.

Industry leaders argue that the five-year transition period under Senate Bill No. 2826 may not be enough to develop the necessary processing infrastructure.

“Without holistic government support, an export ban at this time would slow progress and risk industry failure,” Bravo said.

He also highlighted geopolitical and market factors, including rising competition from other nickel-producing countries and shifts in global demand.

China, the primary buyer of Philippine nickel ore, could turn to alternative suppliers if the ban proceeds.

PNIA reiterated its support for strengthening the mining sector but urged the government to focus on improving the investment climate first.

“Instead of imposing restrictions prematurely, the focus should be on creating a competitive business environment to ensure long-term industry sustainability,” Bravo said.

“This partnership is important to the shared clean energy and national security goals of the Philippines and the United States,” said Enoh T. Ebong, USTDA’s Director. “Through this grant, we are supporting high-quality technical and environmental standards for mineral processing in the Philippines, while also creating valuable commercial opportunities for U.S. companies.”

USTDA’s study will evaluate the technical and economic viability of developing a nickel processing facility at the site of EMI’s mine in Zambales Province. The plant is expected to use EMI’s nickel ore to produce refined nickel and cobalt products for sale as battery precursor materials. The study will help define the technical specifications for the facility and promote alignment with high environmental, social, and governance standards.

“EMI seeks to contribute to the green energy transition and energy security through the supply of critical materials from our nickel mining operations for energy storage systems. The company likewise supports the encouragement of the Philippine government for mineral value-adding. The USTDA grant contributes to the accomplishment of such objectives through the determination of the optimal process for our ore to produce battery-grade precursor materials,” said Enrique C. Fernandez, EMI President/CEO. 

This project advances the goals of the Biden-Harris Administration’s Partnership for Global Infrastructure and Investment and the Indo-Pacific Economic Framework, through the development of clean energy supply chains including the responsible mining of metals and critical minerals.

U.S. businesses interested in submitting proposals for the USTDA-funded feasibility study should visit www.ustda.gov/work/bid-on-an-overseas-project.