Nickel is a key component of lithium-ion batteries used in electric vehicles. It allows more energy to be stored in batteries and allows manufacturers to reduce the use of cobalt, which is more expensive and has a less transparent supply chain.
"Nickel is rare and expensive," so the chief executive officer of electric vehicle maker Tesla tweeted Thursday that the company is converting some cars to batteries that use iron instead.
The three-month nickel price on the London Metal Exchange on Friday was $ 19,568 per tonne. Metal prices on the London Metal Exchange are up 16% this year amid widespread increases in commodity prices, with investors betting on strong demand growth as the economy recovers. The price of the metal also rose after the world's leading producer, Norilsk Nickel, announced the suspension of production at two of its mines: Oktyabrsky and Taimyrsky.
