Cobalt prices rose forced Tesla and other Asian battery manufacturers to use more nickel
According to media reports, cobalt prices soared, prompting major battery makers in Asia to change the proportion of raw materials for electric cars and cell phones, reducing cobalt usage and increasing nickel content. Battery demand for electric vehicles will jump by 19 times in the 10 years to 2025, and manufacturers are seeking to reduce the more expensive components in the batteries. Cobalt prices have more than doubled over the past year and are in short supply due to strong demand. Cobalt prices rose to an average of $58549 a tonne in July, about six times the price of nickel.
The conflict in Congo caused a shortfall in cobalt supply and increased demand, leading to a rise in cobalt prices. Nearly 60% of the world's cobalt is supplied from Congo.
UBS pointed out in a recent report, the electric car battery demand surged, so the nickel material demand from now to 2025 during the growth of 10-40%, the specific growth depends on nickel can substitute cobalt in the extent. As the lower reaches of the stainless steel market for the better, steel mills generally raised the purchase price of high nickel iron.
In addition, the recent LME nickel prices rose, according to the report on the August 3, 2017 national China hall nickel price market trend monitoring shows: August 3, 2017 national nickel price 85006.25 yuan / ton, the average price of 83565.63 yuan / ton yesterday, yesterday rose 1440.62 yuan / ton, a day or 1.7%, in June compared to 74500 yuan / ton, 2 consecutive a month has risen 13%, to boost the domestic market.
Cobalt mining is often associated with the exploitation of copper and nickel. As copper prices rise, nickel demand increases and prices rise, cobalt production is expected to increase as a by-product.
UBS said that the current application of Tesla proportion is 8:1:1, and in cooperation with Panasonic, hopes to increase the proportion of nickel use to 85%. Analysts believe that as the market moves towards the trend of nickel manganese cobalt and nickel cobalt aluminum, more attention is being paid to the use of nickel. Your research platinum has a 98% stake in Yuanjiang nickel reserves, has proven Yuanjiang nickel nickel for 530 thousand tons of Hailiang shares of Jinchuan group, which has the world's third largest copper nickel sulfide deposits, nickel content ranks the first in china.