The Nickel Necessity
In the evolving landscape of modern industry, certain materials are becoming increasingly vital. Nickel, a key component in the surge of electric vehicles (EVs) and energy storage technologies, is one such material. It’s a compelling fact that an average EV battery contains approximately 29 kilograms of nickel, which is nearly five times the amount of lithium it uses. This stark comparison underscores the immense role nickel plays in our leap towards a green future—a role that cannot be overstated as the United States faces the impending exhaustion of its only active nickel mine, the Eagle Mine in Michigan, by 2025.
This need for domestic sourcing is not merely an economic strategy; it’s a matter of national urgency, reinforced by policies like the Inflation Reduction Act. These policies highlight the strategic importance of critical minerals such as nickel for national security and economic resilience. Nickel’s role is expanding beyond its traditional uses to become a fundamental element in a tech-driven world, elevating its importance in the investment sphere.
Nickel’s Newfound Status: From Industrial Alloy to Battery Backbone
Exactly how and why did nickel suddenly become so important?
Consider nickel’s newly elevated status in the eyes of the United States Geological Survey (USGS). Nickel’s importance is now officially recognized by its inclusion in the revised list of critical minerals—a list that has grown in response to the changing needs of our economy and security.
Until recently, the U.S. has managed its nickel needs by importing about half of its consumption from reliable trade partners like Canada, Norway, and Finland. This worked well when nickel’s primary role was as an alloy in stainless steel production. However, as the tides turn towards a future powered by electric vehicles, the demand for nickel—specifically battery-grade nickel—introduces new challenges.
The USGS has now expanded its view on what makes a mineral critical. It’s not just about how much we import anymore, but also about the resilience of our domestic supply chain. And with the Eagle Mine in Michigan as the nation’s sole nickel supplier, the U.S. faces what the USGS terms a “single point of failure.” The mine’s exports of nickel concentrates for overseas refining underscore our vulnerability in this sector.
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