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| Ni EV Battery |
Nickel’s Rising Value in the EV Battery Market
Nickel has overtaken lithium as the most valuable metal in electric vehicle (EV) batteries despite recent price fluctuations. Nickel sulphate prices averaged around $17,000 per tonne in Q2 2025, down from a peak spike in 2022. However, nickel’s total value in EV batteries reached $2.20 billion from January to May, surpassing lithium’s $2.15 billion. This shift occurs despite growing adoption of nickel-free lithium iron phosphate (LFP) batteries, which now account for nearly half of global EV battery capacity. Therefore, nickel remains a key investment focus within the EV supply chain.
Price Volatility and Market Dynamics of Nickel and Lithium
Nickel prices experienced extreme volatility in early 2022, triggered by speculative trading on the London Metal Exchange (LME). The infamous spike to over $100,000 per tonne caused significant market disruptions, including trade cancellations and legal actions. In contrast, lithium prices have sharply declined from over $80,000 per tonne in late 2022 to $8,450 per tonne in mid-2025. Despite lithium’s price slump, nickel’s stable deployment in EV batteries sustains its market importance. However, the rise of LFP batteries exerts downward pressure on nickel demand, creating a complex market balance.
Strategic Implications for Battery Metal Investors and Scrap Markets
The sustained value of nickel in EV batteries highlights its critical role in clean energy transitions and automotive manufacturing. Nickel’s dominance affects global scrap metal markets by influencing raw material sourcing and recycling priorities. Meanwhile, lithium’s price decline may reshape supply chain investments and prompt recycling innovations. Industry players must closely monitor these trends to optimize procurement and circular economy strategies. Furthermore, regulatory policies on critical minerals will shape future supply security for both metals.
ScrapInsight Commentary
Nickel’s ascendance as the top EV battery metal underlines shifting market dynamics amid technological and regulatory changes. Although price volatility challenges investors, nickel’s role in high-energy batteries sustains demand. Stakeholders should emphasize recycling and sustainable sourcing to mitigate supply risks and support the circular economy.
