Carbon Credits recently published “The Ultimate Guide to Nickel,” an excellent article that describes the vital role nickel will play in the global energy transition, which I’m summarizing here.
Essential for traditional industrial applications like alloy production and electroplating, nickel is almost an afterthought in discussions about other critical metals, such as copper and lithium, required for the energy transition. Growing demand for electric vehicles (EVs) will drive demand for nickel, a key component in lithium-ion batteries.
High-nickel battery chemistries offer higher energy density (more charge per weight), which leads to longer driving ranges. As EV manufacturers continue to improve battery performance, the inclusion of nickel will increase significantly to a ratio of as much as 80% or more. Not surprisingly, nickel has joined the critical minerals list in the United States, the European Union, and Japan.
Nickel supply is currently outpacing demand because of Indonesia’s production. Indonesia has become the world’s leading nickel producer due to Chinese investment, lower labor costs, and lower nickel mine environmental standards, resulting in lower production costs. In the last ten years, Indonesia’s nickel production has grown from 7% to over 50% of the world’s nickel production, and it is doubling the number of smelters.
While this growth in nickel production has led to a temporary surplus, the increasing demand for EVs and looming climate targets will lead to a supply deficit expected shortly after 2025.
At Impossible Metals, we are building autonomous underwater robots to responsibly harvest critical metals from the polymetallic nodules on the seabed. These nodules contain four metals: nickel, copper, cobalt, and manganese. Additionally, these nodules are high-grade: Ni=1.3% and Co=0.2%.
Check out our Frequently Asked Questions to learn more about topics such as the market for deep sea critical minerals, environmental and social responsibility for deep sea mining, and the Impossible Metals technology.
Feature photo of EV by Possessed Photography on Unsplash
