The global demand for nickel is on the rise, investment group NTree International says hopes the forecast worldwide nickel shortage driven by the expansion of electric vehicle use may have been addressed by new supply deals could run into environmental issues as attention starts to focus on the sourcing sustainability of vehicle components.
The “increasing use of electric vehicles is leading to concerns that the industry faces a deficit of 60,000 tonnes a year of nickel, which makes up to 80% of electric vehicle batteries, until at least 2027 with nickel demand expected to surge from 128,000 tonnes in 2019 to 1.23 million tonnes by 2040,” NTree International said in a statement.
“This has boosted the price of LME Nickel which saw returns of almost 40% from 16 July 2020 to 26 Feb[ruary] 2021,” according to the statement.
Set up in 2017, NTree International aims to serve as a bridge between investors and Chinese asset managers.