Nickel is extensively used across various industries, with its most popular applications being in the stainless steel and electric vehicle (EV) battery production sectors.
The most common use of nickel is in stainless steel production, where over 66% of the global nickel ore is utilized for manufacturing stainless steel used in kitchen equipment, chemical processing, metallurgy, and other industries.
Due to the increasing global adoption of electric vehicles, nickel utilization in electric vehicle batteries is projected to grow by 42% in 2022. According to a report published by the International Energy Agency in 2021, electric vehicle batteries and energy storage solutions are set to stand out in the stainless steel sector.
According to BHP Group Limited, due to the rise of the electric vehicle industry, nickel demand is expected to grow fourfold in the next 30 years. The company’s 85% of nickel sulfate production is used for batteries. As reported by Reuters, by 2023, lithium and nickel will be sufficient to power batteries for 14 million electric vehicles, and it is estimated that the global number of electric vehicles will reach 21 million by 2025. The compound annual growth rate (CAGR) of the global electric vehicle market is projected to be 18.2% from 2021 to 2030, reaching $823.75 billion by 2030. Global electric vehicle sales were 2 million units in 2020, and by 2021, it surpassed 100% growth to reach 4.2 million units.
In addition to the electric vehicle industry, the aerospace and defense sectors represent another promising growth prospect for the nickel market. Due to its heat resistance and metal integrity, nickel alloys are used in the aerospace and defense industries for jet engine turbines, exhaust valves, constant-temperature valves, storage tanks, and pipelines.