The supply of Class I nickel, essential for electric vehicle batteries, is expected to face a shortage for the next three to five years, according to a new report by The Oregon Group, an investment research company focused on a variety of key investment trends related to commodities and energy transition.
The Oregon Group predicts a continued crunch in the nickel market despite increased production by Chinese nickel giant Tsingshan.
The report examines key trends affecting the growth of Class I nickel supply and demand. These include geopolitical tensions and the coming clash between the pressure to decarbonize supply chains and the high emissions of new and near-term nickel production.
Nickel market trends have become hard for many observers to predict. The London Metals Exchange (LME) crash in March 2022, with the subsequent canceled trades and withdrawal of numerous banks, put an end to the LME’s liquidity. Nickel prices are now so volatile that they are n