More Nickel Please Global demand for high-grade nickel, an essential component in electric vehicle (EV) batteries, will outweigh supply by 2024. An analysis by Rystad Energy indicates that although global supply will continue its steady y/y climb, rising demand spurred in part by the energy transition will lead to a shortage in less than two years.
Global nickel demand is forecast to climb to 3.4 million t in 2024 from 2.5 million t this year. Analysis of existing mines, projects and development plans estimates that global supply will fall short of demand in 2024, with production of 3.2 million t. The gap between global supply and demand will then widen quickly to a deficit of 0.56 million t by 2026.
Nickel is an essential component of the batteries used by many automakers, and a supply shortage could cause numerous headaches and ripples across Western car manufacturing. In addition, the deficit is likely to encourage automakers to assess alternative battery chemistries, as well as search for previously untapped nickel deposits.