Benefits of nickel
Nickel’s benefits are wide-ranging from the critical strengthening of steel to renewable energy. Many global trends around sustainable development rely on the unique and essential properties of nickel.
Nickel powering the EV industry
“…please mine more nickel… Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call July 22, 2020
By 2025, the EV growth trend demand is expected to require nearly 1Mtpa of new supply, and by 2030 that demand for growth will reach 2.5Mtpa. That is double today’s demand.
Supplies of battery-grade nickel which is a key component in the cathode of an electric vehicle’s battery, could run short as early as 2023.
The demand
The nickel market is a US$20+ billion per year industry. Today’s market is dominated by stainless steel, accounting for over two thirds of the market’s production and more than 85% of US domestic consumption.
The forecasted demand for Nickel is expected to surge over the coming years, propelled mostly by the trend in electric vehicles and the electric vehicle battery materials industry. It is expected that around 50% of light vehicles around the world will be electric by 2050.
Unlike its immediate peers gold or copper, the project pipeline for nickel is very limited, with only a few number of projects around for investors and a very limited number of new discoveries made in recent years.
Nickel in our everyday life.
Skycrapers
Tough, strong and corrosion-resistant, nickel alloys are widely used in the construction of skyscrapers.
Electric vehicle batteries
Nickel packs more energy into EV batteries to deliver a longer range. A 60kWh Li-on battery uses 39kg of nickel, 6kg of lithium and 5kg each coablt and manganese.
Jet Engines
The aerospace industry uses nickel alloys to make turbine blades and jey engine parts. Nickel's high melting point, hardness and erosion resistance is called on when stress needs to be minimised.
Stainless Steel
Two thirds of global nickel production is used to produce stainless steel. Stainless steel is used in industrial food processing as well as home kitchens, and is favoured for it's durability and hygienic properties.
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Nickel by the digits
169 kt
Production
$2.6 b
Export Revenue
10
Nickel Mines
Australia has 10 nickel mines and several major projects in development.
21.2Mt
Nickel Resource
Australia has the world’s largest EDR of nickel.
24%
World Share
Australia has 24 percent of the world’s nickel resources.
$181.2m
Exploration
Exploration expenditure by the nickel industry in 2020.
What’s the demand?
The nickel market is a US$20+ billion per year industry. Today’s market is dominated by stainless steel, accounting for over two thirds of the market’s production and more than 85% of US domestic consumption.
The forecasted demand for Nickel is expected to surge over the coming years, propelled mostly by the trend in electric vehicles and the electric vehicle battery materials industry. It is expected that around 50% of light vehicles around the world will be electric by 2050.
“…please mine more nickel… Tesla will give you a giant contract for a long period of time if you mine nickel efficiently and in an environmentally sensitive way.” – Elon Musk, Co-Founder and CEO, Tesla Earnings Call July 22, 2020
By 2025, the EV growth trend demand is expected to require nearly 1Mtpa of new supply, and by 2030 that demand for growth will reach 2.5Mtpa. That is double today’s demand.
Supplies of battery-grade nickel which is a key component in the cathode of an electric vehicle’s battery, could run short as early as 2023.
Unlike its immediate peers gold or copper, the project pipeline for nickel is very limited, with only a few number of projects around for investors and a very limited number of new discoveries made in recent years.