{"id":29410,"date":"2024-05-31T10:19:29","date_gmt":"2024-05-31T14:19:29","guid":{"rendered":"https:\/\/capital10x.com\/old\/?p=29410"},"modified":"2024-05-31T10:19:29","modified_gmt":"2024-05-31T14:19:29","slug":"canada-nickel-deep-dive-part-1-the-global-outlook-for-nickel","status":"publish","type":"post","link":"https:\/\/capital10x.com\/old\/canada-nickel-deep-dive-part-1-the-global-outlook-for-nickel\/","title":{"rendered":"Canada Nickel Deep Dive Part 1: The Global Outlook for Nickel"},"content":{"rendered":"<h3><strong>Nickel is the Key Building Block for a Successful Energy Transition<\/strong><\/h3>\n<p>Governments are pushing hard to electrify transportation and energy generation in a race to decrease global greenhouse gas emissions.<\/p>\n<p>The rapid buildout of windmills, solar panels and the rise of Tesla have made certain battery metals like lithium, cobalt and copper household names.<\/p>\n<p>But there is one battery metal no one is talking about that is more important than them all. Nickel.<\/p>\n<p>If we look at which metal has been gaining the most battery market share in the last five years, nickel is far and away the winner.<\/p>\n<p>Leading edge batteries, with the best energy density on the market, are using up to 80% nickel in the anode, up from less than 33% in older chemistries.<\/p>\n<h4>Nickel % in Leading Edge Battery Chemistries<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29414\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-2.png\" alt=\"\" width=\"943\" height=\"539\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-2.png 943w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-2-300x171.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-2-768x439.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-2-696x398.png 696w\" sizes=\"auto, (max-width: 943px) 100vw, 943px\" \/><\/p>\n<div class=\"su-note\"  style=\"border-color:#a2cbe4;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\"><div class=\"su-note-inner su-u-clearfix su-u-trim\" style=\"background-color:#bce5fe;border-color:#ffffff;color:#333333;border-radius:3px;-moz-border-radius:3px;-webkit-border-radius:3px;\">The increase in nickel usage translates to a 39% increase in the weight of nickel needed per electric vehicle in the coming years, an exponential increase in demand when coupled with rising sales of EVs and battery backups for renewable power generation.<\/div><\/div>\n<h4>Kilos of Nickel in New Battery Chemistries up 40%<\/h4>\n<figure id=\"attachment_29411\" aria-describedby=\"caption-attachment-29411\" style=\"width: 885px\" class=\"wp-caption alignnone\"><img loading=\"lazy\" decoding=\"async\" class=\"wp-image-29411 size-full\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1.png\" alt=\"\" width=\"885\" height=\"1147\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1.png 885w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1-231x300.png 231w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1-790x1024.png 790w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1-768x995.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-1-696x902.png 696w\" sizes=\"auto, (max-width: 885px) 100vw, 885px\" \/><figcaption id=\"caption-attachment-29411\" class=\"wp-caption-text\">Source: https:\/\/elements.visualcapitalist.com\/the-key-minerals-in-an-ev-battery\/<\/figcaption><\/figure>\n<p>Nickel has become the most important mineral in an EV battery as it now makes up a majority of a battery&#8217;s cathode, the most expensive component and arguably the most important determinant of performance.<\/p>\n<h4>Highest Energy Dense Batteries All Use Nickel<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29412 size-full\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Todays-Battery-Options-August-2023-1.jpg\" alt=\"\" width=\"897\" height=\"285\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Todays-Battery-Options-August-2023-1.jpg 897w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Todays-Battery-Options-August-2023-1-300x95.jpg 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Todays-Battery-Options-August-2023-1-768x244.jpg 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Todays-Battery-Options-August-2023-1-696x221.jpg 696w\" sizes=\"auto, (max-width: 897px) 100vw, 897px\" \/><\/p>\n<p>With the cathode making up more than 50% of a batteries total cost, nickel\u2019s ability to increase range and power output has been critical in helping bring down the price of batteries overall.<\/p>\n<h4>Battery Cell Broken Down by Cost<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29413\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1.jpg\" alt=\"\" width=\"1200\" height=\"1550\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1.jpg 1200w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1-232x300.jpg 232w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1-793x1024.jpg 793w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1-768x992.jpg 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1-1189x1536.jpg 1189w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/EV-Battery-Cell-Cost-Breakdown-2021-1-696x899.jpg 696w\" sizes=\"auto, (max-width: 1200px) 100vw, 1200px\" \/><\/p>\n<p>Nickel is such an irreplaceable part of a battery because of its ability to increase the energy density and output of a battery. Add more nickel to a battery you increase performance.<\/p>\n<p>The latest science has found that increasing the nickel content increases the energy density, a key differentiator, especially in electric vehicles where range is a key selling point for customers. More nickel, more energy, it\u2019s that simple.<\/p>\n<h4>Nickel Batteries Offer the Highest Energy Density on the Market<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29415\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3.png\" alt=\"\" width=\"1616\" height=\"618\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3.png 1616w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-300x115.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-1024x392.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-768x294.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-1536x587.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-696x266.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-3-1392x532.png 1392w\" sizes=\"auto, (max-width: 1616px) 100vw, 1616px\" \/><\/p>\n<p>Nickel is on track to own an increasing share of lithium ion battery chemistries based on industry forecasts. Couple rapidly growing battery demand with the move towards higher nickel content across all battery chemistries and we have a situation where nickel demand will likely grow faster than the world has seen in modern history.<\/p>\n<h4>NMC811 is the Most Nickel Dense Battery on the Market and Gaining Share<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29416\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4.png\" alt=\"\" width=\"1541\" height=\"634\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4.png 1541w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-300x123.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-1024x421.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-768x316.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-1536x632.png 1536w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-696x286.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-4-1392x573.png 1392w\" sizes=\"auto, (max-width: 1541px) 100vw, 1541px\" \/><\/p>\n<h3><strong>Nickel Demand Set to Grow 80% by 2030<\/strong><\/h3>\n<p>Based on industry forecasts and from Canada Nickel\u2019s internal analysis, nickel demand is on track to hit 5.1 million metric tons per year, an 82% increase, or 7% annual growth over 9 years.<\/p>\n<p><strong>To put this in perspective, the global supply of nickel which is already at a record, will need to almost double by the end of the decade just to meet current renewable and EV demand forecasts.<\/strong><\/p>\n<p>However, demand forecasts could end up being too low based on recent history. In the first three years of this decade nickel demand has already exceeded all earlier estimates growing 9%-10% a year. The 5.1 million tons number is likely to come in closer to 6 million tons or better according to Canada Nickel.<\/p>\n<h4><strong>Global Nickel Demand Outlook\u00a0<\/strong><\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29418 size-full\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5.png\" alt=\"\" width=\"1365\" height=\"775\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5.png 1365w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5-300x170.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5-1024x581.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5-768x436.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-5-696x395.png 696w\" sizes=\"auto, (max-width: 1365px) 100vw, 1365px\" \/><\/p>\n<p>Western government incentives and plans to phase out internal combustion cars by 2035 are driving rapid adoption of electric vehicles. Even though we&#8217;ve seen a slowing in battery only sales in the west this year, Chinese consumers are still transitioning to full battery cars at a rapid rate.<\/p>\n<h4>EV Share of Total Car Sales<\/h4>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29427\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6.png\" alt=\"\" width=\"1303\" height=\"829\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6.png 1303w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6-300x191.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6-1024x651.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6-768x489.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-6-696x443.png 696w\" sizes=\"auto, (max-width: 1303px) 100vw, 1303px\" \/><\/p>\n<h3><strong>A Turnaround for Nickel Prices is Imminent<\/strong><\/h3>\n<p>Even though rising supply from Indonesia has led to a market surplus and weak prices recently, forecasts from many leading commodity houses and consultants including Benchmark Mineral Intelligence call for near term bottoming in Nickel prices and a gradual recovery.<\/p>\n<p>With prices as of late May close to Benchmark&#8217;s forecast after bottoming out 20% below Benchmark&#8217;s forecast for year end, the downside looks extremely limited as demand for energy storage continues to exceed estimates.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-29429 size-full\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7.png\" alt=\"\" width=\"1412\" height=\"1044\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7.png 1412w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-300x222.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-1024x757.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-768x568.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-696x515.png 696w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-1392x1029.png 1392w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-7-80x60.png 80w\" sizes=\"auto, (max-width: 1412px) 100vw, 1412px\" \/><\/p>\n<p>We expect 2023 to mark the peak in nickel inventories and with supply deficits starting in 2028, nickel prices have likely found a bottom in our view.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-full wp-image-29430\" src=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8.png\" alt=\"\" width=\"1084\" height=\"962\" srcset=\"https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8.png 1084w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8-300x266.png 300w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8-1024x909.png 1024w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8-768x682.png 768w, https:\/\/capital10x.com\/old\/wp-content\/uploads\/2024\/05\/Canada-nickel-8-696x618.png 696w\" sizes=\"auto, (max-width: 1084px) 100vw, 1084px\" \/><\/p>\n<p><strong>In part 2 we discuss the rise of a potential nickel cartel in Asia, what the west is doing to fight it and why North American nickel producers will likely be the main beneficiaries of coming legislation.<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Why nickel demand is underestimated and why 2024 likely marked the bottom for nickel prices this decade.<\/p>\n","protected":false},"author":7,"featured_media":25458,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[2430,56],"tags":[2136,890,2450,2392],"class_list":{"0":"post-29410","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-energy-transition-metals","8":"category-featured","9":"tag-canada-nickel","10":"tag-nickel","11":"tag-otcqx-cnkf","12":"tag-tsx-cnc"},"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.8 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Canada Nickel Deep Dive Part 1: The Global Outlook for Nickel | Capital 10X<\/title>\n<meta name=\"description\" content=\"Why nickel demand is underestimated and why 2024 likely marked the bottom for nickel prices this decade.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, 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