Supply chain instability worsened with the crisis in Ukraine
161% nickel and 57% cobalt increase in price
At least KRW 2 million ↑in battery production
Battery accounts a big portion of the total pri
The price for key materials for electric vehicle batteries, nickel and cobalt, increased by 161% and 57%, respectively, from last year. The instability in supply chain with the Ukraine crisis and a surge in demand is the reason for the price increase. An increase in electric vehicle prices is inevitable as the production cost per vehicle also increased up to KRW 2 million.
According to Korea Mineral Resource Information Service (KOMIS) on the 10th, nickel costs $42,995 per ton (about KRW 53.12 million), which is 161% increase from $16,434 in last March. The price of cobalt, which is the most expensive battery material, also rose from $52,775 to $82,250, which is 56.8% increase.
The price increase trend that has occurring since last year due to a shortage in supply is getting worse from the Russian invasion in Ukraine. It is inevitable that prices of batteries and electric vehicles will rise.
The domestic battery industry imports most of its nickel from South America, China, and Australia. Russia accounts for 10% of the world's nickel supply. Nickel supply will not halt immediately even if Russia decides to suspend its exports, but the prices will rise inevitably due to a slowdown in supply. The increase in the price of nickel in just one week exceeds the price increase of previous three years and two months. The London Metal Exchange has suspended nickel trading when the price per ton of nickel exceeded $100,000 during the day of the 8th (local time).
A South Korean company that has been focusing on 'High Nickel' technology, which has raised the nickel content of cathode materials to more than 90%, is being affected directly. The battery industry predicted that there would be an increase of battery price by at least KRW 2 million due to the increase costs of nickel and cobalt. An official from the battery industry said, “Batteries account for about 40% of the total price of electric vehicles, and the price of cathode materials accounts for 40% of the price of the batteries. Thus, it is inevitable to see an increase in price by KRW 2 million to 3 million for a 60-70 kW battery when converting the cost arithmetically.”
[Table] Nickel Cobalt Price Trend (Unit: Dollar/ton)
Provided by Korea Mineral Resource Information Service
By Staff Reporter Tae-jun Park (gaius@etnews.com)