Madagascar nickel and cobalt remain under intense pressure in 2026. The Ambatovy site, one of the world largest hydrometallurgical complexes, is seeking to diversify its markets by commercialising its cobalt towards the United States and Europe. Meanwhile, the country is struggling to make the transition towards local processing of its mineral wealth.
Ambatovy at the Market Crossroads
Stratton Metals has announced it will commercialise cobalt extracted at Ambatovy for American and European markets. This pivot towards Western buyers — in a context of supply chain tensions for batteries and industrial relocalisation — represents a significant opportunity for Madagascar. Ambatovy cobalt, certified to environmental and social standards, could benefit from new traceability requirements imposed by the European Battery Regulation.
Nickel Under Global Pressure
However, nickel remains under pressure: global prices have been depressed in 2025–2026 by Indonesian overproduction, which is weighing on the profitability of African and Malagasy operators. The sector has suffered significant losses and a price recovery depends on global supply rationalisation. For Ambatovy, this implies rigorous cost management and a strategy of moving up the value chain towards higher value-added products.
Local Processing: Still an Elusive Goal
Madagascar still exports the bulk of its mining resources in raw form — a finding that applies equally to graphite (85,000 tonnes exported unprocessed in 2025), nickel, and cobalt. Value added is captured abroad, leaving the local economy with little benefit from its own wealth. The government is calling on investors to develop local processing units, but fiscal incentives and energy infrastructure remain insufficient to attract industrial players.
Why It Matters
Cobalt and nickel are critical materials for the global energy transition — electric vehicle batteries, renewable energy storage. Madagascar holds some of the world most significant reserves. If the country can move up the value chain and process part of its production locally, the economic impact would be considerable: creation of skilled jobs, export diversification, and reduced vulnerability to raw material price cycles.