Plain truth EV adoption ahead of forecast !!! Growing nickel use in EV batteries to tip the market into deficit?
With the number of EVs set to rise over the coming decade as more countries implement emission-cutting policies, nickel usage in EV batteries is expected to grow very quickly.
Nickel demand in the EV sector could grow to 600,000 tonnes by 2025, accounting for 24% of the 2.5-million tonne global nickel market, according to Will Adams, head of base metals and battery research at metal price reporting agency Fastmarkets.
This led some in the market to believe that the nickel market could tip into deficit by 2030 as supply would lag demand. The growing demand in EVs batteries underpinned the bullish nickel price forecast between 2024-2025 for Morgan Stanley and Fitch Solutions.
According to the Nickel Institute, there is increasing use of nickel in lithium-ion batteries and this trend is set to grow. Two of the most commonly used types of batteries, Nickel Cobalt Aluminium (NCA) and Nickel Manganese Cobalt (NMC) use 80% and 33% nickel, respectively.