The United States currently operates no domestic nickel smelters, leaving North America entirely reliant on just two remaining pyrometallurgical facilities in Canada. Compounding this critical supply chain vulnerability, a recent report by the Carnegie Endowment for International Peace projects that the US will face a massive annual nickel deficit of approximately 741,987 tonnes by 2035. To address this severe shortfall, awaruite (a naturally occurring nickel-iron alloy) is emerging as a strategic solution. Because awaruite concentrate can bypass traditional smelting and be directly converted into nickel sulfate, it is favorably positioned to qualify for the US Section 45X Advanced Manufacturing Production Credit, helping to secure domestic defense and EV battery supply chains.

According to industry reports, the Pipestone XL project in Newfoundland, Canada, is advancing its awaruite (Ni₃Fe) nickel-cobalt deposit to supply the North American defense and energy storage sectors. Awaruite, a naturally occurring, sulfur-free magnetic alloy containing approximately 77% nickel, enables the production of a high-grade ~60% nickel concentrate through simple magnetic separation and flotation. This unique metallurgical profile completely bypasses carbon-intensive pyrometallurgical smelting and early hydrometallurgical stages like high-pressure acid leaching (HPAL).

Korea’s battery industry is expanding beyond EVs into ESS and other applications. As a result, competition is shifting from product performance toward broader supply chain capabilities. InterBattery 2026 highlighted this transition.

While maintaining a growth structure centered on EVs, South Korea’s battery industry is accelerating its expansion into energy storage systems (ESS) and non-automotive application fields, entering a new phase of transformation. As a result, the basis of competition is shifting from product performance to broader supply chain capabilities. At InterBattery 2026 held in March, major South Korean battery producers showcased a diverse range of products for ESS, AI infrastructure, and industrial applications, underscoring this shift. The industry’s focus is now moving from the single EV market to a broader landscape of energy and industrial applications.

With utilization rates among Korean battery manufacturers remaining around 50% and reflecting a timing mismatch between demand and supply, utilization is increasingly emerging as a key indicator of cost structure and operational efficiency in a context where capacity expansion has preceded demand realization.

The North American battery joint venture between Hyundai Motor Group and SK On has been officially named HSBMA (Hyundai SK Battery Manufacturing America). Since announcing the joint venture in April 2023, the project has reached over 90% completion and is scheduled to begin commercial operations this year. The plant, located in Bartow County, Georgia, will have an annual production capacity of 35GWh, equivalent to batteries for approximately 300,000 electric vehicles. The two companies have jointly invested a total of $5 billion, each holding a 50% stake in the venture.