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Global demand for nickel will surge as much as fourfold over the next 30 years as electric vehicles almost entirely replace traditional cars, a BHP (NYSE:BHP) executive said at a conference in Sydney early Thursday.
“We anticipate demand for nickel in the next 30 years will be 200% to 300% of the demand in the previous 30 years,” said Jess Farrell, BHP’s (BHP) asset president of Nickel West.
~85% of the nickel sulfate produced at the Nickel West refinery in Western Australia already goes to the battery sector, up from just 10% six years ago, having previously signed supply deals with car manufacturers including Tesla, Toyota and Ford.
Farrell also said, according to Bloomberg, that BHP’s (BHP) nickel business is poised to benefit from the Inflation Reduction Act, which includes incentives for U.S. automakers to get more materials from friendly countries.
“Australian companies are well placed to be a partner of choice, recognizing our efforts to address these ethical and environmental concerns, and Australia is a favored jurisdiction from which to source commodities,” Farrell said.
A BHP (BHP) executive said earlier this week that inflationary pressures will remain a challenge next year, but China will provide a source of stability for commodity demand.
Image and article originally from seekingalpha.com. Read the original article here.