How is the violent unrest in New Caledonia impacting global nickel prices?

Global nickel prices have been soaring since violence erupted in the French Pacific territory of New Caledonia last week. The territory is a major global producer of the critical material that is used in electric vehicle batteries, solar panels, steel and other alloys. Concerns over supply disruptions due to the unrest, added to sanctions on metals from Russia have pushed global prices above $20,000 per ton for the first time since September 2023. Concurrently, the International Energy Agency has released a report saying there could be future supply shortages of nickel. Here’s a closer look at the global importance of New Caledonia’s nickel industry and why social unrest in the territory has impacted prices.