If I recall correctly, Nikasil is a part of aluminum cylinders which are then etched to bring the silicon nodules to the surface. (I think; I could be confusing this with Alusil!) This provides a hard surface for the rings to move on, but you need to use different rings than with cast-iron liners.
I don't know if cast-iron (i.e., cheap!) liners can be Nikasil treated or not.
There's an outfit called LN Engineering that makes Nikasil cylinders for air-cooled engines like old VWs and Porsches. Google will tell you their website, and you can ask them about costs and materials and such. My guess is that if there is any benefit it will not be worth the expense, but that is just a guess.
-soD
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