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Nickel demand is expected to increase significantly in 2021 and beyond
http://www.financial.de/rohstoffe/rohstoff-news/nickelnachfr…

10:47 | 11/29/2021
Nickel demand is expected to increase significantly in 2021 and beyond
According to estimates by the Australian Department of Industry, Science, Energy and Resources (DISER), the demand for processed nickel will increase by 15% to 2.7 million tons in 2021. But the demand for the metal, which is also used in electric vehicles, is expected to increase beyond that, reaching 2.9 million tons in the coming year and 3.0 million tons in 2023.
According to this report, most of the demand still comes from the stainless steel sector, even if the demand from the booming electric mobility sector continues to grow. The production of stainless steel is also expected to grow by 15% in 2021, supported by government subsidies, among other things. However, it said, this growth is likely to slow down to 5% in 2022 and 2023.

As DISER also said, expectations of future growth in nickel demand are based on the forecast growth of the battery sector. This, along with government subsidies and ongoing decarbonization efforts, are driving demand for nickel, the report said.

According to many market observers, the demand for nickel for use in batteries is expected to double over the period under review, as battery factories go into operation both inside and outside China.

According to DISER, batteries currently only account for around 6% of primary nickel consumption. However, it is assumed that the increasing use of electric vehicles, together with the growing use of nickel in batteries, will push this value to 14% within three to five years.

Above all, the demand from the European Union as well as from China and the USA will fuel this trend, according to DISER. In addition, the report continues, local electric vehicle value chains in populous nations such as India and Indonesia could cause demand to rise beyond the forecast period observed.