Nickel hit a four-year low as a lackluster outlook from the Federal Reserve for next year outweighed the possibility of sharp mining cuts in Indonesia.

Futures on the London Metal Exchange dropped as much as 2.3% Thursday, to the lowest level since November 2020. The commodity used in electric-vehicle batteries has been one of the worst performers among industrial metals on the bourse this year.

The Fed on Wednesday issued quarterly forecasts showing that several officials see fewer interest-rate cuts in 2025 than previously expected. That points to a stronger dollar and higher financing costs that could hurt commodities.

Indonesia is now considering deep cuts to nickel mining quotas as it seeks to boost slumping prices of the metal, Bloomberg reported earlier Thursday.

The nation, one of the world’s dominant producers, is looking at lowering the amount of nickel ore allowed to be mined next year to 150 million tons, according to people familiar with the matter who asked not to be named as the deliberations are private. That would be a sharp drop from 272 million tons this year.

Nickel — which topped out at more than $100,000 a ton in 2022 during an infamous runaway short squeeze — is trending about 8% lower this year. That’s due in part to a wave of new supply previously expected from Indonesia and a slowdown in electric-vehicle sales.

Nickel fell 1.8% to $15,235 a ton on the LME 1:47 p.m. local time. Copper, aluminum and zinc also declined.