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Nickel in the energy transition

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Created on March 26, 2021

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#5

NICKEL

Market concentration: what do the figures tell us?

What risks is facing nickel supply ?

Who produces it?

Where is nickel found?

Metals in the energy transition

Where is nickel found?

Who produces it?

New Caledonia

8,1 %

DominicanRepublic

1,9 %

United-States

0,6 %

United States

0,1 %

Cuba

2 %

Australia

6,9 %

Russia

7,3 %

China

3 %

4,8 %

China

Indonesia

22,4 %

Indonesia

30,7 %

Philippines

12,9 %

Philippines

5,1 %

Cuba

5,9 %

Brazil

2,9 %

Canada

6,1 %

Canada

3 %

Brazil

17 %

Russia

11,3 %

Calculés d'après : Shedd, K.B., (2021), “Mineral Commodity Summaries”, U.S. Geological Survey.

Main reserves

Main producing countries

Nickel

Australia

21,3 %

Market concentration: what do the figures tell us?

1 376

HHI index - Nickel reserves

HHI index - Nickel production

1 427

A relatively low concentration of the production and the reserves

781

HHI index - Oil production

Calculation based on : Shedd, K.B., (2021), “Mineral Commodity Summaries”, U.S. Geological Survey.

highly concentrated market

1500 < HHI < 2500

HHI > 2500

moderately concentrated market

The Herfindahl-Hirschmann index (HHI) is a measure of the market concentration

Les métaux dans la transition énergétique

What risks is facing nickel supply ?

For 2050

A moderate geological risk on the nickel resources is to be anticipated

58,7 % to 61,3 % will be extracted in a more ambitious 2°C climate scenario

Within the context of BAU mobility and irrespective of the battery technology considered, 51,4 % à 52, 8% of nickel resources will be extracted in a 4°C scenario

A geological risk to keep track of

Consumer countries, European states in particular, are threatened by increasing depedence and supply disruptions could emerge within the next ten years.

Structural price volatility doesn't encourage an increase of investments in class 1 nickel production and transformation

The electrification of the vehicle fleet could cause the multiplication by 4 of the nickel demand in a 2 °C scenario

The extraction and transformation of high-quality nickel that is used for batteries could be a problem

Economic and strategic risks

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Metals in the energy transition

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7 minutes

Episode 5NICKEL

Metals in the energy transition

Podcast