BHP Group Ltd. predicts that over the next 30 years, global demand for nickel will grow as much as fourfold as electric vehicles (EV) will almost entirely replace traditional cars.
The world’s second largest miner said that in 2040, nine out of every 10 cars sold will be EVs, which will boost global usage of key battery materials including nickel.
“We anticipate demand for nickel in the next 30 years will be 200% to 300% of the demand in the previous 30 years,” Jess Farrell, BHP’s asset president of Nickel West said.
The nickel sulfate produced at BHP’s factory in Western Australia already goes to the battery sector at about 85% of the production, up from 10% six years ago.
The company once considered selling the plant before, but reversed that plan in 2019 after viewing that the long-term nickel outlook is brighter.
The nickel business of BHP is poised to benefit from President Joe Biden’s Inflation Reduction Act, which includes incentives for American car makers to get more materials from US-friendly nations and tax credits.