Battery Metals Report 2020
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Which is the best performing metallic raw material of 2019? - It may be surprising for many, but it is nickel! Admittedly, for many investors a boring metal, with which one could do so far quite little. But watch out, besides lithium, nickel will play THE decisive role in the production of lithium-ion batteries for the electric revolution in the future. The decisive factor for the electric car to prevail continues to be the range of the corresponding batteries. And this will be significantly extended in the coming years, and by reducing the weight of the battery, energy consumption will of course also be reduced accordingly. In the coming years there will be a move away from NMC (111) towards NMC (532) and finally NMC (811). NMC stands for nickel, magnesium and cobalt and the number corresponds to their ratio. The use of nickel will therefore gradually increase over the coming years at the expense of magnesium and cobalt.
The proportion of lithium, on the other hand, will remain constant. There is no alternative to lithium and there will be no practical alternative for the next 5 years. Political risks in particular are not even rudimentarily included in the current lithium price and are causing extreme headaches for the entire industry. On the other hand, demand is expected to increase. Because the demand for lithium appears almost gigantic not only because of, but above all because of, the new boom sector of electric mobility! While 2017 still saw 220,000 tons of LCE, experts expect LCE demand to rise to over 900,000 tons per year by 2025. With the increased risks and, in particular, the increased uncertainty regarding long-term stability in South America, this production volume appears almost unattainable.
This report provides insightful information about the battery metal sector and provides insightful interviews with selected industry experts. The presentation of a number of interesting companies that are suitable for speculation on rising battery metal prices completes the report.