Nickel 28 Capital Corp.
Suite 5300, TD Bank Tower,
Box 48, 66 Wellington Street West, Toronto, ON M5K 1E6
info@nickel28.com
Russia's class I nickel exports
After Russia invaded Ukraine, the three-month nickel price on the LME reached an 11-year high of US$25,575 per tonne. The reason is that Russia supplies around 20% of the world's Class I nickel.For newcomers to the nickel market, it's important to know that there are two main types of nickel:
- Class I has a purity of at least 99.8% and is essential for electric batteries and LME deliverable
- Class II: has lower purity levels, is non LME deliverable, and is primarily used in stainless steel
Before the Ukraine war, Nornickel had plans to expand the Harjavalta refinery capacity to 75,000 MT/year and 100,000 MT/year by 2026. Instead, the company is now looking at a 10% production cut this year as Europeans seek alternate sources.
Meanwhile, EV sales continue to ramp up. According to the International Council on Clean Transportation, a variety of incentives for automakers and consumers, design improvements and efficiencies mean EVs could reach price parity with gas powered cars this year, which is as much as five years sooner than many analysts forecast. Consumer sentiment regarding EVs has also been accelerated by the "price at the pump" spikes in recent years. While regional adoption rates vary, global sales of new EV already sit at 13%, and are expected to hit 55% by 2030.
Considering the role that Class I nickel plays in most EV battery chemistries, this is good news for nickel consumption over the long run.
Forward-Looking Information: Some of the posted entries on the CEO Corner may contain forward-looking statements. Forward-looking statements address future events and conditions which involve inherent risks and uncertainties. Actual results could differ materially from those expressed or implied by them. Examples of forward looking information and assumptions include future estimates of the worldwide supply and demand for nickel and other metals and the effect that these changes could have on the short term and long term price of nickel and other metals on the world markets, statements regarding the future operating or financial performance of Nickel 28 including the net present value, metal recoveries, capital costs, operating costs, production, rates of return and payback. Forward looking statements involve known and unknown risks and uncertainties which may not prove to be accurate. Such statements are qualified in their entirety by the inherent risks and uncertainties surrounding future expectations. Among those factors which could cause actual results to differ materially are the following: market conditions and other risk factors listed from time to time in our reports filed with Canadian securities regulators on SEDAR at www.sedar.com.
In some cases, forward-looking statements can be identified by terminology such as "may", "will", "should", "expect", "projects", "plans", "anticipates" and similar expressions. These statements represent management's expectations or beliefs concerning, among other things, future operations and various components thereof affecting the economic performance of Nickel 28. Undue reliance should not be placed on these forward-looking statements which are based upon management's assumptions and are subject to known and unknown risks and uncertainties, including the business risks discussed above, which may cause actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Accordingly, readers are cautioned that events or circumstances could cause results to differ materially from those predicted.
Links: Some of the posted entries on the CEO Corner may include links to 3rd party websites. Nickel 28 has not reviewed all websites linked to or from this Site and is not responsible for the contents of any such websites. The inclusion of any link does not imply endorsement by Nickel 28 of the linked website or its content. Use of any such linked website is at the user's own risk.
For further information we refer you to our legal notice.
