Nickel demand – Stainless Steel
According to the International Nickel Study Group world primary nickel production was 1.99 million tonnes in 2016 and it is projected to increase to 2.05 million tonnes in 2017. Meanwhile, world primary nickel usage was 2.04 million tonnes in 2016, but should increase to 2.15 million tonnes in 2017. 2017 was the second consecutive year of deficit between production and demand.
“We estimate 2017 primary Ni demand in stainless will increase by almost 9% to more than 1.5Mt. We forecast continued growth for 2018 and beyond. “: Glencore, November 2017.
Nickel & Cobalt demand – the EV Battery Market
As Glencore asked in a presentation delivered in November 2017: “Where will all the primary nickel needed come from?” In the same presentation, Glencore stated “We conservatively estimate more than 10 million EVs will be sold a year in 2025 and that will generate net additional primary nickel requirements of over 400Kt Ni in 2025 only. Battery demand will very likely be a transformational demand event, which will turbo charge primary nickel demand in the next decade.”
The Future – DNi and the Sustainability of the Electric Vehicle Market
- The DNi Process™ poses a threat to the current status-quo in the nickel supply market;
- This revolutionary procedure would solve the inevitable crises that car manufacturers will suffer when nickel supplies drop below worldwide demand;
- The United Kingdom’s “Road to Zero” plan pledges that half of new car sales will be hybrid or electric by 2030, with sales of all petrol and diesel cars ending by 2040;
- China has also pledged to ban all combustion-engines by 2040, with annual sales of 2 million EVs by next year;
- Morgan Stanley believe EV car sales will overtake internal combustion engine (ICE) sales by 2040, whereas Elon Musk told the National Governors Association that more than half of car sales will be electric within 10 years;
- It is difficult to predict when the EV market will grow exponentially however, it is clear that will happen provided there are sufficient supplies of battery metals to meet the demand;
- With both governments and manufacturers making promises striving for a cleaner, greener future, the shortage of nickel supplies could prove detrimental to the industry as nickel is a key component in the cathodes of an EV battery;
- To this end, the DNi Process™ would aid the growth of the EV market, allowing manufacturers to meet sales projections whilst doing so in a more cost effective and environmentally sustainable manner.