Nickel futures have dipped below the $19,700 per tonne threshold, moving closer to a 13-month low of $15,00 in mid-August, as the demand for electric vehicles experiences a slowdown, intensifying the pressure resulting from increased battery stockpiles for manufacturers.
Fears of an impending economic downturn triggered by China’s weak macroeconomic data have translated into reduced consumer spending on EVs, leading to a significant 10% reduction in battery prices in August. As a result, manufacturers of batteries for new EVs have gradually curtailed their input buying activity since the onset of the third quarter as their inventories filled up and the funds from prior government-led subsidies dried out.
Meanwhile, a lithium deposit recently discovered in the United States, which may rank among the world’s largest, further fortifies the case for lithium-ion batteries dominating the EV market, surpassing nickel-based alternatives.
