Critical Minerals and Energy Intelligence

Another Major with a Major Nickel Forecast

As reported by Bloomberg, Jess Farrell, who heads up BHP’s Nickel West, forecast that by 2050, demand for nickel could shoot up to four times what it’s been over the last 30 years. This is based on the company’s belief that by 2040, nine out of every ten new cars sold will run on batteries, not gas. That’s going to require a lot of battery metals, particularly nickel.

And BHP’s producing lots of it. Their Nickel West operation in Western Australia used to send most of its product to the stainless steel industry. Now, however, ~85% of its nickel sulphate heads straight to battery manufacturers, up from 10% back in 2016.

Jess Farrell also highlighted that BHP and Australia as a whole is well positioned thanks to the U.S. Inflation Reduction Act. Specifically, IRA gives carmakers tax credits if they source critical minerals like nickel from countries that have free-trade agreements with the U.S. and of course Australia is on that list.

Anthony Milewski

Chairman, Nickel 28 Capital

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