Shortages of nickel

Almost half of the world’s nickel production comes from Indonesia. And most of it is in Chinese hands. Prices for the metal rose in February. There are still fears that sanctions against Russian nickel could lead to shortages. Some smelters have already announced that they are reducing production. Nevertheless, nickel producers in western jurisdictions are finding it difficult to compete with the lower prices from Indonesia. And Indonesian producers could also incur losses. If less nickel comes out of the mines, this should support the price. In addition, the economic situation appears to be improving, which should boost demand. In the medium term, the experts at Commerzbank therefore see a nickel price of around USD 20,000 per tonne.

Raw materials such as nickel, lithium and cobalt are in demand when it comes to electrification and electromobility.

This should benefit the Canada Nickel Company – https://www.commodity-tv.com/ondemand/companies/profil/canada-nickel-company-inc/ – , for example. This is because it owns nickel and cobalt in the Crawford project in Canada. Cobalt is mainly used in electric vehicles. However, cobalt is also used in combustion engines, magnets, tools and chemical processes. An average lithium-ion battery contains around ten kilograms of cobalt. Most of this cobalt comes from the problematic Democratic Republic of the Congo.

Companies such as Blackbird Critical Metals (formerly known as Gama Explorations) – https://www.commodity-tv.com/ondemand/companies/profil/blackbird-critical-metals-inc/ -, which own nickel, cobalt, copper and lithium in their projects in Canada, are in a much better position.

Current company information and press releases from Blackbird Critical Metals (- https://www.resource-capital.ch/en/companies/blackbird-critical-metals-corp/ -) and Canada Nickel Company (- https://www.resource-capital.ch/en/companies/canada-nickel-company-inc/ -).

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