EV batteries need nickel: Why Class 1 supply Is becoming critical amid global conflict

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🗞️ Driving the news: High‑purity nickel, known as Class 1 nickel, is becoming critical for electric vehicle batteries as demand for long-range lithium-ion EVs surges globally, highlighting supply chain vulnerabilities amid geopolitical tensions and energy shocks

🔭 The context: Nickel is a key component in NMC and NCA battery chemistries, improving energy density and driving EV range
• Global demand for nickel in EV batteries could surpass 1.09 million tonnes by 2030, with Class 1 nickel (≥99.8% purity) required for battery-grade nickel sulfate
• Geopolitical events, such as the Russia‑Ukraine conflict and instability in energy and shipping markets, amplify supply risks, as do energy-intensive processing methods like High-Pressure Acid Leach (HPAL) for laterite ores

🌍 Why it matters: Class 1 nickel scarcity threatens EV battery manufacturing, industrial growth, and clean energy deployment
• A shortfall between Class 1 supply (≈1.2 million tonnes) and demand (≈1.5 million tonnes) is projected in the near term, just as EV adoption accelerates
• Securing nickel from stable, allied regions (“friendshoring”) reduces geopolitical exposure and supports decarbonisation goals

⏭️ What’s next: Industry and governments are focusing on high-quality nickel sources and sustainable processing pathways
• New projects like Alaska Energy Metals’ Nikolai project offer battery-grade nickel along with copper, cobalt, and platinum group metals, with cleaner processing and ESG transparency
• Expanding sulphide nickel supply and refining capacity is crucial to meet growing EV demand while avoiding reliance on geopolitically sensitive imports
• Strengthened regulatory frameworks and strategic sourcing initiatives will guide future investments in the nickel supply chain

📈 One stat: Demand for nickel in cleantech applications, mainly EVs, is expected to more than double from around 560 kilotonnes in the early 2020s to over 1,349 kilotonnes by 2030

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