Threat of electric mobility

Author: Mario Schmidtgen
Date: 27.07.2018

Shortage of nickel stocks

Many manufacturers of electric cars could face some problems in the future. For example, there should not be enough nickel left for the production of electric batteries according to Bloomberg. According to Simon Moores, CEO of Benchmark Mineral Intelligence a resource information service, companies are concerned that non-existent commodities could jeopardize their business model.

A study of the world’s largest commodity trader Glencore indicates that demand from battery manufacturers for the raw material will be around one million tons in 2030. This would be about 55 percent more than the current annual volume. Nickel has various uses. Thus, the material can act as a metal or alloy in various industries, such as the automotive, aerospace, electrical and chemical industries.

However, according to the British commodities analysis house “Wood Mackenzie”, the amount that will be funded in the future will not be enough to cover the entire demand. As a result, this could lead to tough disputes about the metal between different companies. Nickel has its largest deposits in Australia, Russia, Cuba and Canada. Analysts are convinced that the nickel price will double due to the lack of existence in the next four years. While prices for other commodities are falling, the price of nickel has already risen by about six percent this year.