FORECAST: Nickel's inroads in EVs could drive prices up

The use of nickel in electric vehicle (EV) batteries is projected to soar 450% over the next nine years, which could push prices for the metal higher as supply tightens.

Nickel consumption in EV batteries is forecast to rise to about 220,000 tonnes in 2025 from 40,000 tonnes in 2016, Wood Mackenzie principal analyst Sean Mulshaw said in a report on October 24.

With no large increase in supply planned this could bode well for nickel prices on the London Metal Exchange, which have generally been on an upward trend over the past month. The contract closed the LME's official session at $12,020 per tonne ($5.45 per lb) on October 24, up 2.3% from $11,745 per tonne ($5.33 per lb) one week earlier and approaching the more than two-year high of $12,220 per tonne ($5.54 per lb) reached on September 5.


Millicent Dent

October 25, 2017

02:20 GMT