Tesla CEO Elon Musk emphasizes the importance of the nickel element in every opportunity he finds. So why is nickel, which is the main component in lithium-ion batteries, so important and what is the status of nickel in the markets?
Tesla, which has become one of the most popular names in the automobile industry recently, achieved this success with its vehicles with electric motors and autonomous driving systems. Aware of this, the company does not try to do its best to make the cars it designs better. The latest news from the Tesla front reveals that the future of electric motor cars depends on the nickel element.
Lithium-ion batteries are used in many products today, including cars with electric motors. However, as Tesla CEO Elon Musk points out, the phrase “lithium ion” is actually not a very correct name for batteries. Because these batteries contain very little (about 2 percent) lithium. The main component of batteries is nickel itself. Musk voices it whenever he gets the opportunity.
In a recent statement about nickel, Musk asked miners to produce more nickel. Saying this to miners all over the world, Elon Musk stated that big agreements will be made between Tesla and miners who produce environmentally friendly nickel. But with regard to nickel, which is critical for battery manufacturing, there is currently no huge deal.
Michael Beck, President of Regent Advisors, a financial advisory firm, states that a Tesla Model 3 contains about 30 kilograms of nickel. Stating that nickel is the place where all the energy is stored, Beck says that the higher the nickel amount, the higher the energy density of the battery. Beck’s statement clearly demonstrates how important nickel is for batteries.
According to Michael Beck, the widespread use of electric vehicles will increase the need for nickel. However, keeping nickel production at these levels will cause some shortages, and nickel prices will skyrocket in the next few years. Stating that his favorite metals are nickel, Beck states that significant investments will be made in the nickel production sector and this is what is required.
Statements made by both Elon Musk and Micheal Beck whet the appetite of mining companies that produce nickel. Miners state that they attach importance to nickel production and try to contribute to the sector by uncovering the mines. However, it is unclear where the process will evolve. Nickel seems to be talked about more in the coming periods.