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Awaruite is a naturally occurring nickel-iron alloy (Ni3Fe), formed during serpentinization of ultramafic rocks without sulfur, unlike nickel sulfides and laterites.
Awaruite, a naturally occurring nickel-iron alloy composed of Ni3Fe or Ni2Fe, is a proven and environmentally safer solution to North America's domestic critical nickel supply shortage. Unlike conventional nickel sources, awaruite can be processed into high-grade concentrates exceeding 60% nickel content without the need for smelting1. This is particularly significant given the lack of smelting capacity in North America, which is largely controlled by China, and the Inflation Reduction Act's requirement that critical minerals in batteries be extracted or processed domestically or in countries with U.S. free trade agreements by 2025.
Awaruite's unique properties enable cleaner and safer processing compared to conventional sulfide & laterite nickel sources, which often involve smelting or high pressure acid leaching. These methods can release toxic sulfur dioxide, generate hazardous waste, and could cause acid mine drainage. Awaruite's simpler processing eliminates smelting and intensive acid leaching, reducing greenhouse gas emissions and toxic chemical release risks, addressing concerns about the large carbon footprint and toxic emissions associated with battery metal refining, particularly for nickel.
The development of awaruite resources is crucial, given China's dominance in the global nickel market. Chinese companies refine and smelt approximately 68%-80% of the world's nickel4 & 5. Through investments, they also control an estimated 84% of Indonesia's nickel output6, the world's largest nickel supplier. Awaruite presents an environmentally safer, more sustainable, and domestically processable nickel source that can meet the growing demand in the stainless steel and electric vehicle markets while reducing reliance on China-dominated foreign refining and smelting, including their significant control over Indonesia's nickel output.
[1] https://fpxnickel.com/news/fpx-nickel-completes-confirmatory-large-scale-mineral-processing-pilot-testwork-with-funding-support-from-the-government-of-canada/ [2] https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf [3] https://d9-wret.s3.us-west-2.amazonaws.com/assets/palladium/production/mineral-pubs/nickel/mcs-2012-nicke.pdf [4] https://www.brookings.edu/wp-content/uploads/2022/08/LTRC_ChinaSupplyChain.pdf [5] https://www.bloomberg.com/news/articles/2024-05-01/us-philippines-eye-partnership-to-cut-china-s-nickel-dominance [6] https://www.airuniversity.af.edu/JIPA/Display/Article/3703867/the-rise-of-great-mineral-powers/