Korea’s nickel alloy market demand surges, with high-end manufacturing and new energy sectors as key drivers

Seoul, with the rapid development of South Korea’s semiconductor, battery and aerospace industries, the demand for high-performance nickel alloys has grown significantly. Industry analysis shows that the size of South Korea’s nickel alloy market is expected to exceed 5.2 trillion won (about 3.8 billion U.S. dollars) in 2025, a year-on-year increase of more than 10%, mainly due to the technological upgrading of high-end manufacturing and the expansion of the new energy industry.

Market Driving Factors

1. Semiconductor and electronics industry: South Korea as a global semiconductor manufacturing center, high temperature, corrosion-resistant nickel alloys (such as Inconel 600, 625) in strong demand for wafer manufacturing equipment and precision parts.

2. Batteries and new energy: the popularity of electric vehicles (EV) and energy storage systems to promote the demand for nickel-based battery materials (such as NCM / NCA cathode materials), Samsung SDI and LG New Energy and other companies continue to expand production capacity.

3. Aerospace and defense: South Korea’s domestic fighter jet (KF-21) and aerospace programs have increased procurement of high-strength nickel alloys (such as Hastelloy, Waspaloy).

Supply Pattern: Import Dependence and Localization Challenges

Currently, the Korean nickel alloy market is still highly dependent on imports, with Japan, the U.S., and Germany as the main source countries. Local companies such as POSCO and Korea Nickel Alloy are investing more in R&D in an attempt to achieve breakthroughs in the field of high-performance alloys, but key technologies (e.g., ultra-pure nickel smelting) are still restricted by overseas suppliers.

In 2025, the South Korean government announced that nickel alloys will be added to the list of “key strategic materials”, and plans to promote localized production through tax incentives and R&D subsidies to reduce dependence on imports.

Price volatility and supply chain risk

South Korea’s nickel alloy procurement costs have risen due to fluctuations in global nickel prices (e.g., the LME Nickel 2022 event) and geopolitical factors. Industry experts are calling on companies to establish a diversified supply chain and explore nickel recycling technologies to reduce risks.

Future Outlook

The nickel alloy market is expected to maintain an average annual growth rate of 8% to 12% as South Korea continues to invest in semiconductors, batteries and defense. If local companies can make breakthroughs in the field of high value-added products (e.g., single-crystal high-temperature alloys), it is expected to change the current situation of dependence on imports.