Elon Musk said nickel shortage could threaten the electric vehicle market

Elon Musk said nickel shortage could threaten the electric vehicle market


MarketTechnology

Olga Blinkova | 03/02/2021

Elon Musk said nickel shortage could threaten the electric vehicle market

Nickel is an expensive metal and has limited supplies, so Tesla plans to replace it with iron by producing lithium iron phosphate (LFP) batteries. Such a tweet was published by the chapter
by Elon Musk. Earlier, Mr. Musk approached nickel producers with a request to increase the production of this metal.

Experts expect a noticeable shortage of nickel in the market over the next three years, and a real shortage is predicted in early 2023. In general, as calculated by the experts of the company Wood
Mackensie, global nickel consumption for electric vehicles will increase by 64% between 2019 and 2025.

Nickel is a component for the production of batteries for electric vehicles. So, Tesla is currently using nickel-cobalt-manganese batteries of the Korean company LG
Chem and nickel-cobalt-aluminum batteries from the Japanese company Panasonic.

Nickel has already risen in price by 16% since the beginning of the year.

Earlier, in the summer of 2020, Elon Musk said that Tesla is ready to provide a giant long-term contract for the purchase of nickel to the one who will produce this metal efficiently and safely for
ecology.

Tesla Electric Cars

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