Hold on there Hilldweller, this guy's spin is suspect. The Indonesian product is being sourced from Ni laterite ore and it is not good news for suppliers of concentrate from Ni sulphide ore. As far as I know, here's why:
Traditionally the Ni for battery precursors comes from Ni sulphide ores, Class 1 Ni. A few years back Mr Bigshot (the boss of Tsingshan whose recent massive short position created havoc on the LME Ni market/ huge price spike) announced he intended to produce battery precursor (Ni matte I think) from their Indonesian laterite mine/s, which would be cheaper than the same sourced from Ni sulphides. This was why he shorted the market, he thought such production would eventually drive the Ni price down. Not everyone was convinced, and one reason was because it was thought that the assumed lousy ESG involved (coal powered energy, disposal of waste into the ocean?, etc etc) would mean that ESG conscious companies like Tesla would not accept such Ni in their supply chains. (I read a few months back that Tsingshan were working on an alternative to coal but I don't know what has happened with that.) Now it looks like Tesla has broken ranks, but it would be wise to wait for the full picture to emerge. If laterite Ni can successfully undercut and replace sulphide Ni it is not good news as there are huge Ni laterite resources.
I think what I've said is correct, but I'm not an expert. I am however, very interested and have been trying to work out the rather complex Ni world.
MYL Price at posting:
70.0¢ Sentiment: Buy Disclosure: Held
