Nickel in electric vehicle batteries: global demand 2018/2025

The global demand for nickel to be used in electric vehicle batteries only amounted to 60,000 metric tons in 2018. This number is expected to increase over tenfold by 2025 to some 665,000 tons worldwide. A shift in the automotive industry towards electrification is driving the rapid growth. Currently, batteries are one of the smallest segments of nickel use.

Driving up nickel demand

The rapid use of electronics has increased the demand for many materials. Some rare element, such as lithium, are extremely valuable, as producers are unable to match the demands from the electronics industry. Nickel also has a higher level of demand than production. The lithium-ion batteries used in electric vehicles use nickel as an essential component. Manufacturers of electric vehicles are grossly consuming more nickel, putting strain on nickel production. The surplus in demand provides nickel prices with steady growth. Companies the produce electric vehicles, such as Tesla, will be among those driving up demand. Solid-state batteries have the potential to interfere with nickel’s soaring use. The scientists that behind the first examples of lithium-ion batteries were awarded the 2019 Nobel Prize in Chemistry.