The price of nickel was US$28,625 per ton on Dec. 15, up 13.3 percent from the November average price. The price topped US$40,000 early this year in the wake of the war in Ukraine, fell to US$19,100 in July, and is rising again due to undersupply.
Nickel is a key component in terms of EV battery performance. Higher nickel content means longer driving range and higher energy density. South Korean EV battery manufacturers, which are concentrating on nickel-cobalt-manganese (NCM) batteries, are containing more and more nickel in their products.
By contrast, the price of lithium has begun to fall from the highest level in history. On Dec. 15, the price of lithium carbonate per kilogram was 527.5 yuan, down 7.69 percent from the average of the previous month. Chinese EV battery manufacturers are concentrating on lithium-iron-phosphate (LFP) batteries and the price competitiveness of the batteries is likely to increase.
LFP batteries are cheaper than NCM and today’s EV battery market can be defined as competition between the two. The ongoing rise in nickel price means a decline in the price competitiveness of the South Korean companies. LFP as well as NCM batteries have evolved based on R&D and global automakers are increasing their use of LFP batteries.
