This article is well worth reading. It's an analysis of Ni...

This article is well worth reading. It's an analysis of Ni demand Vs supply from a perspective of using alternate sources of Ni e.g. Ni matte as proposed (but not proven to be economical) by Tsingshan:

An extract from the article"



Nickel price slumps as electric dreams are rudely disturbed

Reuters | March 5, 2021 | 8:33 am Battery Metals Intelligence Top Companies China Europe USA Nickel

Anglo American Nickel furnace at Codemin in Brazil (Credit: Anglo American)
(The opinions expressed here are those of the author, Andy Home, a columnist for Reuters.)

"Tsingshan is now opening up another bridge between ferrous and battery grades of nickel by going down the matte route.
“There is not a chemical reason why this cannot work but we note that it has not been done before,” said Goldman Sachs.
And it comes with some serious drawbacks that may limit its potential impact on global battery supply chains."

and also ....

"Carbon heavy

Leaving aside the question of whether Tsingshan can actually deliver on its promise to supply 100,000 tonnes of matte within a year from October, the matte conversion route requires an alignment of NPI, matte and sulphate premiums to be consistently profitable.
It also comes with a heavy carbon footprint, which is two to four times higher than using high-pressure-acid-leach technology, according to Goldman Sachs.
Given that this is material for powering “green” electric vehicles, a high-carbon processing route is unlikely to win over the likes of Tesla.
Goldman’s view is that “China will likely be the only destination market for this nickel which (… is a very important limitation on the impact from Tsingshan’s strategy on the broader EV market.”
A new generation of lithium-iron-phosphate batteries, which don’t use nickel, is grabbing a growing share of the Chinese market
The investment bank projects nickel demand from EV batteries to grow by 400,000 tonnes between 2020 and 2025 with the Chinese market accounting for 70,000 tonnes.
Goldman’s conclusion is that Tsingshan’s disruptive processing path will not be enough to affect supply deficits for battery-grade metal. The bank is holding its 12-month price forecast at $21,000 per tonne.
Citi analysts are more cautious.
If Tsingshan can supply even part of China’s battery demand, it “could loosen nickel balances over the next few years” and push back the need for higher prices to incentivise new battery-grade projects. (“Nickel Deep Dive”, March 2, 2021)"

https://www.mining.com/nickel-price...price-drops-most-since-2016-on-tsingshan-deal