Nickel prices soared 70% in a week: South Korea's battery industry entered a "state of emergency"

Reference News Network reported on March 17, according to South Korea's "Dong-A Ilbo" report, the price of nickel, the core material of batteries, is soaring with a terrible momentum. There are concerns that the battery industry for electric vehicles, which has become the mainstay of South Korea's next-generation industry, may be constrained by sharply rising costs.

According to reports, nickel prices started at $10,440 in January 2019 and soared to $25,240 on the 28th of last month, maintaining an upward momentum. The main reason is that the demand for batteries has risen with the sharp increase in the sales of electric vehicles. The higher the nickel content, the greater the battery capacity and the greater the electric vehicle's range.

Due to the soaring nickel price, the battery industry, which is highly anticipated as the "second semiconductor industry", has been directly hit. Not only the three Korean battery companies including LG Energy Solutions, SK-On, and Samsung SDI, but also companies that provide battery materials have been greatly affected, and the entire industrial ecosystem has suffered a great impact.

The report also said that most of the nickel of the three Korean battery companies was imported from South America, China, Australia and other places. Even if Russia interrupts exports, nickel supply will not be interrupted immediately. However, as nickel prices rise further, it is difficult to avoid the expense burden.

As nickel prices skyrocketed, the South Korean government also retained its decision to sell the Ambatobi nickel mine in Madagascar, Africa, and began to re-study it. An official from the Ministry of Industry, Commerce and Energy explained: "It has not yet been decided whether to sell or own the relevant mines, and the relevant procedures are in progress." There are observations that the sale plan may also be cancelled.

Jeong Man-ki, president of the Korea Automobile Industry Association, emphasized: "Electric vehicles are highly dependent on the import of core materials such as nickel, lithium, and cobalt. We should develop stable raw material security measures by expanding overseas resource development."