Increase in Electric Vehicle Market Sparks Requirement for Dense Battery Components
The global nickel market, currently valued at $14.61 billion, is expected to experience a significant surge, reaching an estimated $44.59 billion in 2024, primarily driven by the electric vehicle (EV) and green energy sectors.
The nickel-based battery market for EVs is projected to reach approximately USD 2.37 billion in 2025, growing at a Compound Annual Growth Rate (CAGR) of about 3.93%. Premium EVs, with their demand for longer driving ranges, are driving an 8% year-on-year increase in nickel content per battery.
Global EV manufacturers are reporting a rise in nickel content per battery, with large-scale battery production investments, such as Panasonic’s USD 4 billion plant in Kansas, operational since early 2025, reflecting strong supply chain commitments.
Governments, particularly through policies like the U.S. Inflation Reduction Act, are providing significant fiscal incentives and setting strict emissions targets, which accelerate the adoption of nickel-rich cathode chemistries due to their superior energy density and range extension capabilities.
By 2029, the overall nickel market is projected to reach about USD 61 billion, growing at a CAGR above 9%. By 2040, electrification of transportation will demand approximately 125 million tons of battery minerals, with nickel being a key component.
However, the nickel market is not without challenges. Price volatility, geopolitical risks, supply chain vulnerabilities, and sustainability concerns are all factors that need to be addressed. Countries like Indonesia aim to control nickel ore exports, while trade rules such as foreign-entity-of-concern sourcing add further complexity.
Despite these challenges, opportunities abound. Technological advancement, strategic investments, battery recycling, government support, and sustainable procurement practices are all key to meeting this surge sustainably and reliably.
Countries with large known nickel reserves, such as Indonesia, Australia, and Brazil, are poised to benefit from this growth. The EU has already set a target for all new cars and vans sold to be zero emission by 2035, and global sales of EVs reached 6.2 million units in the first half of 2023, with a 49% increase.
As the demand for nickel for use in EVs is expected to increase tenfold from 2019 to 2030, the electric vehicle sector is growing, spurring the market for battery materials. However, mining nickel can involve challenges, including geopolitical wrangling and environmental concerns.
In response, countries are partnering to secure supply lines for EV materials, such as the U.S. and China partnering with resource-rich nations, and the Philippines partnering with the US to prevent China from gaining access to its nickel reserves.
Industry trends emphasise sustainable procurement and novel eco-friendly processing methods to address environmental challenges. Nickel, with its high energy density and storage capacity at a low cost, is now a standard material in the sustainable energy sector, particularly for EV batteries.
In summary, nickel demand is set for robust growth, creating significant opportunities for producers and investors amid a complex landscape marked by supply constraints, geopolitical factors, and sustainability pressures. Advanced recycling and strategic industry collaboration are key to meeting this surge sustainably and reliably.
The surge in the global nickel market, primarily driven by the electric vehicle (EV) and green energy sectors, is also expected to impact the finance industry, as investors may seek opportunities in companies involved in nickel-based battery production for EVs.
With the electric vehicle sector growing and expected to demand approximately 125 million tons of battery minerals by 2040, the energy sector will increasingly rely on nickel, making it a crucial component in the transition to sustainable and renewable energy sources.
