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| EV battery nickel |
Nickel and Cobalt Surge in EV Battery Markets
EV battery nickel reached its second highest value on record, driven by strong demand for high-nickel NCM and NCMA cells. Meanwhile, cobalt prices rose to a 30-month high due to supply constraints from the Democratic Republic of Congo. As a result, automakers face rising input costs while transitioning toward lighter cobalt and high-nickel cathodes.
Nickel sulphate prices in China averaged over $18,000 per tonne in October, supporting high spending on battery-grade nickel. Meanwhile, the North American and European markets continue to favor high-nickel cells, with LFP penetration only recently exceeding 10%. Therefore, nickel remains a critical metal for EV supply chains and strategic resource planning.
Cobalt spending surged to $712.6 million on a rolling three-month basis by end-October, the highest since May 2022. The metal’s market is influenced by DRC quotas and potential US stockpiling. In contrast, global EV adoption trends show rapid growth in Europe, while Asia Pacific and the Americas experience varied expansion, affecting regional battery metal demand dynamics.
ScrapInsight Commentary
EV battery nickel and cobalt markets are experiencing unprecedented value growth, driven by high-nickel NCM adoption and cobalt supply restrictions. Price volatility may continue, influencing raw material sourcing and recycling strategies. This trend emphasizes the need for sustainable and circular approaches in battery metal supply chains.
