Nickel plays a vital role in energy transition due to the growing market for nickel-cobalt-aluminum batteries used in electric vehicles (EV). Nickel mining companies are ramping up investments in new production capacity to cash in on the increasing demand. According to the International Nickel Study Group (INSG), primary nickel production worldwide is expected to reach 3.12 million mt this year, a rise of around 10% from 2021, while demand is likely to be at 3.044 million mt, an increase of some 18% from 2021.
Nickel prices are rising amid the fears of supply shocks due to Russia’s invasion of Ukraine because the metal is a key Russian export. The metal traded at an almost 15-year high earlier this month, and prices could continue their upward momentum if Russia’s production does not make it to market.
