The Battery Pass is what should support nickel-based battery chemistries compete with LFP in Western markets, with recyclability critical to the pack's lifecycle score. Clean nickel, with it's lower environmental impact, whether through tailings disposal/generation, GHG intensity of production, carbon miles of supply chain, will further improve the score. A spent NCM pack that is clean nickel rich should bring in bigger $ as it is handed over to a recycler compared to LFP.
The EU and USA combined account for over 25% of global vehicle sales, surpassing China. The EU battery requirements plus potential costs imposed as part of its China EV subsidy investigation, and the IRA's domestic battery production subsidies should support nickel-based battery chemistries and close price gaps to LFP in these markets; as well as other initiatives such as this Korean one.
Some points to note (my emphasis): * (12)This Regulation should prevent and reduce adverse impacts of batteries on the environment and ensure a safe and sustainable battery value chain for all batteries, taking into account, for instance, the carbon footprint of battery manufacturing, ethical sourcing of raw materials and security of supply, and facilitating re-use, repurposing and recycling.
* (27)The expected massive deployment of batteries in sectors like mobility and energy storage should reduce carbon emissions. However, to maximise that potential, it is necessary that their overall life cycle have a low carbon footprint...Harmonising the technical rules for calculating the carbon footprint for all rechargeable industrial batteries with a capacity greater than 2 kWh, LMT batteries and electric vehicle batteries placed on the Union market is a prerequisite for introducing a requirement for a carbon footprint declaration and subsequently for establishing carbon footprint performance classes that will enable batteries with lower overall carbon footprints to be identified. Information and clear labelling requirements on the carbon footprint of batteries is not expected in itself to lead to the behavioural change necessary to ensure that the Union’s objective to decarbonise the mobility and energy storage sectors is achieved, in line with the internationally agreed objectives on climate change. Therefore, maximum carbon thresholds should be introduced, further to a dedicated impact assessment to determine those values.
* (71) It is necessary to ensure that batteries from third countries entering the Union market comply with the requirements of this Regulation...
* (78) Only a few countries supply the raw materials used in battery manufacture and, in some cases, low standards of governance in those countries can exacerbate environmental and social problems. Both cobalt and nickel mining and refining are connected with a large range of social and environmental issues.
* (86) Mandatory battery due diligence policies should be adopted or changed and should address, at least the most prevalent social and environmental risk categories. Such a policy should cover the current and foreseeable impacts on social issues, in particular human rights, human health and safety of persons as well as occupational health and safety, and labour rights, on the one hand, and on the environment, in particular on water use, soil protection, air pollution, climate change and biodiversity, as well as protection of community life, on the other.
* (101) Producers should have extended producer responsibility for the management of their batteries at the end-of-life stage. Accordingly, they should finance the costs of collecting, treating and recycling all collected batteries...
All points to Indo nickel looking like receiving a red card for gaining high, credible Battery Pass scores. You would think battery producers looking to sell in the EU must be looking elsewhere for responsible minerals. Maybe some will snap up NC assets?
https://www.minister.industry.gov.au/ministers/king/media-releases/nickel-placed-critical-minerals-list “Given impacts to our domestic capacity and noting the broader market developments presently unfolding in the nickel sector, I am fully convinced that we must be proactive in addressing the recent developments, including by adding nickel to the Critical Minerals List.” Australian nickel resources are produced to high environmental, social and governance (ESG) standards, meaning Australia offers more sustainable and ethical critical minerals than many of our competitors. Australia is a world leader in conditions and protections afforded to workers and a leader in worker safety.
Minister King said she had been progressing important discussions with international counterparts in US, Canada and EU to ensure the high standards applied in Australian mining and production of nickel and other critical minerals are reflected in future pricing on international markets. Australian nickel producers must be able to compete fairly in international markets. We are determined to make this happen. When the playing field is fair, Australian resources stand a fair chance.
All eyes on Minister King!
QPM Price at posting:
3.9¢ Sentiment: Buy Disclosure: Held
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