Exploring the High-Density Battery Materials Driving the EV Market
The electric vehicle (EV) market is experiencing a surge in demand, driven by the expansion of product offerings and improvements in charging infrastructure. The first half of 2023 saw a remarkable 49 percent increase in global sales, reaching 6.2 million units. By 2030, industry experts expect global sales to hit a staggering 40 million units.
Support for the transition to EVs is evident in various jurisdictions. In the U.S., federal legislation and tax credits are driving growth in the EV industry. The European Union has mandated that all new cars and vans must be zero emission by 2035.
While lithium-ion batteries have been the go-to choice for EVs and other commercial products, their limitations have prompted research into developing next-generation high-density batteries. These batteries would require a broader range of raw materials, leading to increased demand in the market.
Why Focus on High Density?
Batteries with higher energy density can store more energy by weight, making them essential for the evolution of energy storage. Current EVs are approximately 30 percent heavier than gas-powered cars, with the battery alone weighing an average of 1,000 pounds. This added weight can put additional strain on infrastructure and safety.
For the consumer device market, bulky batteries limit the functionality of laptops and smartphones. Innovative solutions are needed to reduce the weight of batteries, opening up possibilities for battery-powered aircraft and other industrial applications.
Unveiling Nickel’s Potential
Nickel, once primarily used in alloys, has become a standard material in the sustainable energy sector. The global nickel market was valued at $14.61 billion in 2023 and is projected to reach $44.59 billion in 2024.
As a battery material, nickel offers high energy density and storage capacity at a lower cost compared to other materials. Its energy density is approximately twice that of other materials, supporting higher voltages and storage capacities while maintaining stability. Most lithium-ion batteries used in EVs already contain nickel.
Increased demand for nickel in the sustainable energy sector has driven up prices since 2017, although price fluctuations are common. The average monthly price per tonne was $18,465 in 2021 and $25,834 in 2022, with occasional peaks and drops.
Understanding Nickel’s Limitations
Nickel is mined in over 25 countries, with significant reserves located in countries like Indonesia, Australia, and Brazil. However, geopolitical factors can impact nickel mining and distribution, leading to challenges in maintaining a stable supply chain.
Nickel mining can be environmentally intensive, with concerns around water pollution and greenhouse gas emissions. Technological advancements are crucial in developing cleaner extraction processes to mitigate environmental impact.
Exploring Promising Reserves
Several nickel projects around the world offer compelling investment opportunities, especially in stable jurisdictions with robust environmental regulations. Australia and Canada are key players in the nickel sector, with ongoing mining operations and promising new projects in the pipeline.
Investors seeking to capitalize on the rising demand for high-density battery materials should consider projects that prioritize sustainability and ethical mining practices.
Final Thoughts for Investors
While nickel prices can fluctuate, its value is expected to rise over time due to its crucial role in green energy initiatives and battery technology. Investing in sustainable nickel projects in stable jurisdictions can be a strategic move for long-term growth.
For more information on investing in high-density battery materials and the EV market, stay tuned for updates from Ramp Metals.
By Diane Peters
Diane Peters is a freelance writer based in Ontario.
This article is sponsored by Ramp Metals (TSXV:RAMP) and created with information sourced by the Investing News Network (INN) in partnership with Ramp Metals to provide valuable insights for investors.
Please note that investing in securities involves risk, and individuals should conduct thorough research and consult with a qualified investment advisor before making any investment decisions.