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How extracting and producing nickel can be made more sustainable 

Why in the News?

A new study by the Max Planck Institute for Sustainable Materials has introduced a new method to extract nickel using hydrogen plasma instead of carbon. This cleaner, carbon-free process is being seen as a major breakthrough.

What is the new hydrogen plasma method? 

  • Hydrogen gas is converted into plasma using an electric arc furnace. This plasma reacts with nickel oxide to produce pure nickel and water, instead of carbon dioxide.
  • The method is particularly effective for laterite ores, which are abundant in tropical regions like Odisha’s Sukinda belt, making it economically viable for India’s low-grade nickel resources.

How is it different from traditional methods?

Aspect Traditional Method Hydrogen Plasma Method
Process Type Multi-step: calcination, smelting, reduction, refining Single-step metallurgical process using hydrogen plasma
Reducing Agent Carbon (produces CO₂ as a byproduct) Hydrogen plasma (produces water as a byproduct)
Environmental Impact High energy use and CO₂ emissions Up to 84% lower CO₂ emissions and ~18% more energy-efficient

What is the importance of nickel? 

  • Crucial for Clean Energy Technologies: Nickel is essential in manufacturing lithium-ion batteries, used in electric vehicles (EVs) and renewable energy storage systems. Eg: High-nickel batteries like NMC (Nickel Manganese Cobalt) offer higher energy density and longer life for EVs like Tesla or Tata Nexon EV.
  • Used in Stainless Steel Production: Over 60% of global nickel is used in making stainless steel, providing strength, corrosion resistance, and durability. Eg: Used in construction materials, kitchenware, medical instruments, and infrastructure.
  • Strategic Industrial Metal: Plays a key role in the aerospace, defence, and electronics industries due to its ability to withstand extreme temperatures. Eg: Used in jet engines, turbines, and superalloys.
  • Supports Green Infrastructure Goals: Nickel-based technologies support the transition to net-zero and green economy targets. Eg: Solar panels, wind turbines, and grid-scale battery storage use nickel-based components.
  • Economic and Strategic Resource for Countries: Nations with nickel reserves gain economic and geopolitical advantage, especially in the energy transition era. Eg: India’s reserves in Odisha (Sukinda region) can reduce import dependency and boost Atmanirbhar Bharatgoals.

Where are India’s nickel reserves found?

  • Odisha – Sukinda Region: Major nickel laterite reserves are located in Sukinda valley, Jajpur district, Odisha. Eg: Found as nickeliferous limonite in chromite mine overburden with 0.4–0.9% nickel content.
  • Jharkhand and Chhattisgarh: Smaller deposits are also reported in parts of Jharkhand (e.g., Singhbhum) and Chhattisgarh, although less exploited.

What are the steps taken by the Indian Government?

  • National Critical Mineral Mission: Launched in January 2025 with ₹16,300–34,300 crore outlay to enhance domestic exploration, mining, processing, and recycling of minerals like nickel, lithium, and cobalt.
  • Policy Reforms & Incentives: Amendments to the Mines and Minerals Act and the PLI scheme for Advanced Chemistry Cell batteries promote private sector participation and domestic EV battery manufacturing.
  • Global Partnerships & Block Acquisition: India is securing overseas mineral assets via the Mineral Security Partnership and Khanij Bidesh India Ltd (KABIL), while also auctioning critical mineral blocks domestically.

Way forward: 

  • Promote R&D and Industrial Scaling of Hydrogen Plasma Technology: India should invest in pilot projects and public-private partnerships to test and scale the hydrogen plasma method domestically, especially in regions like Odisha with abundant low-grade laterite nickel ores.
  • Strengthen Renewable Energy Integration in Mining Processes: To ensure true carbon neutrality, the electricity used in nickel extraction (especially in electric arc furnaces) must be sourced from renewables like solar, wind, or green hydrogen-based grids.

Mains PYQ:

[UPSC 2023] How do electric vehicles contribute to reducing carbon emissions and what are the key benefits they offer compared to traditional combustion engine vehicles?

Linkage: Nickel is an important metal used in Electric Vehicles (EVs), which are seen as a cleaner alternative to fossil fuel-powered vehicles. However, the article highlight that while EVs reduce operational emissions, the manufacturing of their lithium-ion batteries, particularly the carbon-intensive extraction of nickel, creates hidden environmental costs.

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