The price of nickel, an essential element in the electronics industry and also in batteries for electric vehicles, continues to rise. Currently, at $25,574 per ton, the price of nickel is the highest it has been in 11 years. Nickel prices are already up more than 22% YTD, but this could be just the beginning of the rally.
Due to the Western sanctions against Russia, nickel prices are likely to face the next price increase, as Russia is the third-largest nickel producer in the world. In addition, the world’s largest nickel producer, Nornickel, is a Russian company that produces about 17% of the world’s nickel supply.
Above all, the situation in Ukraine means that the price of nickel could be at the beginning of a long price rally, as the demand for nickel will continue to rise due to the push for electric vehicles. Sooner or later this will lead to further increases in the price of batteries for electric vehicles and then ultimately end up with the consumer. Thus, not a good sign for the big thinkers who want to push the electrification of road transport.