BHP Group (NYSE:BHP) has announced the temporary closure of its nickel business in Australia until at least early 2027, citing a prolonged downturn in nickel prices.

The decision affects both its Nickel West business and the development of the West Musgrave nickel mine.

Starting from October, Nickel West will be placed on "care and maintenance," a move that pauses operations while allowing for essential upkeep.

This strategy comes in response to the current oversupply of nickel, a key component in electric-vehicle batteries, which has significantly impacted its market value.

Despite the suspension, BHP plans to invest approximately A$450 million ($304 million) annually to maintain the infrastructure in a state that would allow operations to recommence promptly should the market conditions for nickel show signs of improvement.