Nickel demand is increasing with the shift to electric vehicles. Let’s take a look at what is happening with this commodity.
Nickel prices were very volatile in 2022. On March 8, 2022, the metal topped US$100,000 a tonne before the London Metal Exchange halted trading, something that has never happened in the nickel market. The spike was driven initially by the outbreak of war in Ukraine, which led to a short squeeze and margin calls for Tsingshan Holding Group Co., a large stainless-steel manufacturer in China.
The top five nickel-producing countries, based on 2021 data, are Indonesia (37 per cent), the Philippines (14 per cent), Russia (9 per cent), New Caledonia (7 per cent) and Australia (6 per cent). Production in Indonesia jumped 54 per cent in 2022 from a year earlier to 1.6 million tonnes. Global production was up 21 per cent last year to 3.3 million tonnes. Indonesia’s growth accounted for essentially all of that increase.
Canada is the sixth largest producer (5 per cent) with mines in Ontario, Quebec, Manitoba, and Newfoundland and Labrador. Canada has three refineries, in Fort Saskatchewan, Alta.; Sudbury; and Long Harbour, N.L.
For the rest of this column: https://www.theglobeandmail.com/investing/investment-ideas/article-will-we-have-enough-nickel-for-our-evs-in-2030/