We forecast that the future for nickel use in batteries is bright. This growth is driven by increasing EV sales, particularly in China, enlarging battery size and raising nickel intensities. CRU believes that the share of NCA and NCM in in battery cathode will grow to 84% by 2030.
In the realm of battery technology, a direct correlation exists between the concentration of this transition metal and the energy density, with increased amounts leading to heightened performance. The sourcing and refining processes of nickel play a pivotal role in defining its effectiveness within batteries used for electric vehicles.
The critical role of nickel in EV battery manufacturing cannot be understated – it is instrumental in green technology that will help forge a net zero future.
Batteries will represent 23.7% of the nickel demand by 2030 and 33% by 2040. The growth in nickel demand in the long-term is dependent on increasing market share of electric vehicles in the transport sector using nickel-intensive batteries. We forecast around two thirds of nickel demand growth out to 2040 will come from the battery sector.
It is predicted that the global nickel consumption in battery industry will increase from 3% in 2017 to 37% in 2030 ( Vale S.A, 2020) ( Fig. 2 a). In 2019, China has become the world's largest primary nickel consumption country with the corresponding share of 55%.
Nickel, when refined and alloyed suitably, enhances the properties of the battery components by increasing their energy density. This superior energy density directly translates into improved performance parameters such as extended driving range and longer battery life for electric vehicles.