Nickel prices have fallen since January of 2023, and in the last two months, but is there still a case for higher prices with increase in AI and the transition to EVs
Preliminary figures for 2025 are forecasting a nickel production surplus of 200,000 tonnes. Employees work at the mining and smelting plant Newco Ferronikeli near the town of Drenas, in Kosovo.Nickel prices have been falling since January of 2023 as production outpaces demand, and have dropped significantly in the past two months. Preliminaryfor 2024 indicate another surplus, with production forecast to rise to 3.7 million tonnes and usage to reach 3.4 million tonnes.
Owing to oversupply, BHP announced it is shutting down its Western Australian nickel projects until 2027. In 2021 BHP had entered into a nickel supply agreement with Tesla Inc. for nickel from these facilities.Historically, close to 70 per cent of refined nickel went into the manufacturing of stainless steel, with that number now closer to 65 per cent. Electric vehicle battery demand now accounts for 15 per cent of overall nickel production.
Global annual vehicle sales are now in the range of 70 to 80 million units. Using the 40 per cent EV projection and a 2-per-cent annual growth in vehicle sales, we would forecast total sales of 90 million units in 2030 with 35 million of them being electric vehicles. Based on an estimate of 40 to 50 kilograms of nickel per vehicle required, we would need between 1.5 and 2.0 million tonnes of nickel annually for these EVs, or greater than 50 per cent of total current production.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
EXCLUSIVE: China-made EVs claimed 25% of federal ZEV rebates in 2023pData, obtained by Automotive News Canada through an access to information request, shows 77 per cent of Tesla Model Ys and 55 per cent of Model 3s claimed under the Incentives for Zero-Emission Vehicles (iZEV) program last year were built in China.
Read more »
Canmore RCMP officer found to have acted reasonably in 2023 shootingNo charges will be laid against a Canmore RCMP officer who shot and seriously injured a suspect during a confrontation at a police checkpoint more than a year ago.
Read more »
Man arrested for fatal 2023 crash in NanaimoIndependent and employee owned - local news stories, weather, sports, events and more
Read more »
Alberta says 2023/24 budget surplus smaller than forecast, cites refinery lossesCanada's main oil-producing province of Alberta on Thursday said the 2023/24 budget surplus would be smaller than initially estimated, partly due to losses...
Read more »
Canada’s 2023 wildfires created nearly 4 times the CO2 of airplanesIt’s about the same amount of carbon dioxide that 647 million cars put in the air in a year
Read more »
Foreign Funds Sell Japan’s Stocks, Longest Run Since March 2023Foreign investors offloaded Japanese shares for a fifth week, marking the longest selling streak since last March, when the nation’s stock market was about to kick off its historic rally.
Read more »