Will 2022 be a year of bulls for nickel, or will bears prevail?

Nickel, a key raw material in lithium-ion batteries used in electric vehicles (EVs), has gradually grown its market share amid a global shift away from fossil fuels.

But with lithium iron phosphate (LFP) batteries making a comeback in the EV market in China, a shadow is being cast on the growth potential for nickel consumption in 2022.
The stainless steel market, which accounts for approximately 90% of nickel consumption, could offer some hope, however. In China, the sector performed strongly in 2021, and expectations are high that markets beyond the country will experience a post-pandemic recovery next year.
Mixed outlook
“Nickel prices are already very high, and have little potential to move higher. I’m bearish about nickel prices, [and] expect London Metals Exchange nickel prices to fall to around $15,000-16,000 per tonne,” one battery producer source said at the sidelines of the annual Nickel & Cobalt conference held by Chinese information provider Antaike on November 1-3 in Ningbo, in China's Zhejiang province.
But another attendee had a different view.

“I’m in the bullish camp,...

Published

Sally Zhang

November 11, 2021

10:10 GMT

Shanghai