As US gas prices hit record highs in the wake of Russia’s invasion of Ukraine, it seems like electric vehicles may not be a safe haven for those looking to save money.
That’s because Russia plays an important part in the production of the nickel that ends up in batteries used by many electric vehicles — a metal that’s rocketed up in price even faster than oil.
On February 25th, nickel was trading on the London Metal Exchange for around $24,000 a ton, according to The Wall Street Journal. By March 8th, it was trading at $80,000 (down from a peak of over $100,000), and the London Metal Exchange had suspended trading.
On February 25th, nickel was trading on the London Metal Exchange for around $24,000 a ton, according to The Wall Street Journal. By March 8th, it was trading at $80,000 (down from a peak of over $100,000), and the London Metal Exchange had suspended trading.
There are a few reasons for the massive uptick in price — because it’s 2022, there are financial shenanigans involved, but it’s also impossible for the market to ignore the fact that an important nickel producer is at war and facing a flurry of international sanctions.
When it comes to mining nickel, Russia isn’t a massive player. According to the WSJ, the country supplies up to 6 percent of the world’s nickel. (For context, that puts it a distant third behind Indonesia and the Philippines, according to a datasheet from the US Geological Survey (pdf).)
When it comes to mining nickel, Russia isn’t a massive player. According to the WSJ, the country supplies up to 6 percent of the world’s nickel. (For context, that puts it a distant third behind Indonesia and the Philippines, according to a datasheet from the US Geological Survey (pdf).)
But Russia’s role in producing the battery-grade nickel used in EVs is a different story — in a Twitter thread breaking down the issue, the CEO of Benchmark Mineral Intelligence says 20 percent of that supply comes from a single Russian company. READ MORE...
