The shift to electric vehicles (EVs) is reshaping the automotive industry, creating unprecedented demand for critical metals. An EV contains 6x more critical metal than a conventional car, making metal resources the backbone of this electrification revolution.
For a typical 62.5 kWh battery-powered EV (NMC 811 composition), here’s the breakdown of key metals and their average raw costs as seen in the infographic (as of 2024):
- Nickel: 43 kg, $764
- Copper: 65 kg, $629
- Graphite: 62.5 kg, $621
- Lithium: 37 kg, $420
- Aluminum: 80 kg, $204
- Cobalt: 5 kg, $121
- Manganese: 5.3 kg, $57
Among these critical metals, nickel plays a crucial role in battery energy density and performance. Compared to lithium, which primarily facilitates ion movement in batteries, nickel plays a larger role in boosting energy density and enabling longer-range capabilities in EVs.
While cobalt enhances battery stability and manganese improves safety, nickel is critical for maximizing storage capacity and performance. Thus, it is indispensable for high-energy-density batteries.
With 43 kg of nickel per EV, nickel represents the largest raw material cost at $764. As EV adoption accelerates, the demand for nickel and other metals will only grow, putting pressure on global supply chains.
The industry faces a balancing act: ensuring a steady supply of these materials while keeping raw material costs sustainable. This dynamic will define the pace and scale of EV adoption in the years to come. So, what does the nickel future look like in keeping with the electrification revolution?
Nickel’s Charge: Powering the EV Boom with Energy Density and Efficiency
Nickel is poised to thrive as the EV revolution accelerates, driven by the growing demand for high-energy-density batteries. Nickel-rich chemistries, such as NMC 811, dominate EV battery production due to their ability to boost range and efficiency.
- By 2030, global EV sales are expected to exceed 50 million units annually, with batteries accounting for over 50% of nickel demand growth and requiring over 1.5 million metric tons of nickel, according to Benchmark Mineral Intelligence.
Moreover, global investment in nickel mining and processing could surpass $66 billion by 2030, underscoring the metal’s significance in meeting EV demand.
Benchmark further projects that by the same period, 85% of battery cell production capacity outside China will rely on high nickel-based chemistries. There would be a growing shift toward high-nickel formulations over time.
Consequently, nickel’s share of raw material costs in EV batteries will also rise, potentially impacting overall production expenses.
Tackling Uncertainties and Bridging the Gap
But wait, there’s a problem: supply-demand imbalances remain a concern due to significant variations in production forecasts. The difference between the highest and lowest projections amounts to nearly 60% of the current supply. This reveals the uncertainties in meeting future nickel demand, especially for EV batteries.
So to meet the escalating demand, significant investments in sustainable nickel mining and refining infrastructure are essential, ensuring a stable and cost-effective supply chain for the burgeoning EV market. Alaska Energy Metals Corp. (AEMC) is addressing these challenges head-on by leveraging Alaska’s rich nickel resources. The company focuses on strengthening the nickel supply chain with a low-carbon approach, supporting the EV market’s rapid growth.
As nations and automakers prioritize electrification, nickel remains at the core of the energy transition, driving innovation and market expansion.
FEATURED: Live Nickel Prices
READ MORE: Nickel Prices in 2025: Indonesia’s 40% Supply Cut Plan and EV Market Shifts
