In a comprehensive interview with Andrea Hotter in the April 2018 issue of Metal Market Magazine, Norilsk Nickel chairman Gareth Penny gave his predictions for electric and hybrid vehicle growth and how the company will move to maximize the value of its products.
As the electrification of the global economy continues to increase demand for the metals that Norilsk produces, particularly nickel and cobalt, Penny predicts a dramatic shift in commodity demand patterns.
“Like most of these things, the move to EVs will take longer than people think, but when the time arrives, it’ll be even more dramatic,” he says.
Penny notes that hybrid battery vehicles in the United States currently account for 9% of the market, with annual growth of 18%; battery EVs have around 3% market share but growth of 25%. Fuel cell EVs are meanwhile just 1% of the market, but growing at an annual pace of 41%.
Although Norilsk is synonymous with nickel production, roughly 27% of the company’s revenue actually comes from the metal, compared with 30% from palladium. With around 8% of Norilsk’s revenue coming from platinum, over a third of its earnings come from PGMs.