As I have been saying for the best part of a year now, the Chinese-Indo nickel sulphate partnerships in Indonesia are undoubtedly the biggest threat to Sconi getting up. Not to mention the continuing dampening of the Co price as the tech moves to 8:1:1 and beyond.
This recent report in the AFR appears to agree:
"Mr Haegel has said the rate of growth in the nickel sulphate market is profound and that "we are going to be talking about millions of tonnes of sulphate in the not-too-distant future."
Some of that optimism is based on figures showing 60KWh batteries driving improved electric vehicle performance need 70 kilograms of nickel compared to nine kilograms of cobalt and 11 kilograms of lithium.
Australian nickel sulphide miners have been counting on their products having a big advantage over Indonesia's nickel laterite miners in the battery supply chain.
However, there are doubts about a sustained rise in nickel prices on the back of the increased demand because of Chinese investment in converting laterite to sulphate product suitable for use in battery making.
It is understood Glencore has formed the view that China will build the capacity it needs to convert ferronickel and nickel pig iron being produced from laterite in Indonesia and the Philippines into nickel sulphate and that these new plants will be built next door to cathode assemblers.
Mr Shaw said the push for high performing, nickel-rich batteries would drive strong demand growth over the next five to 10 years.
However, he said it would be a brave soul to bet against the entrepreneurial ability of the Chinese and Indonesians to produce nickel sulphate at the quality required by battery manufacturers"
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