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    EV battery nickel and cobalt price surge: supply risks explained for mine planners

    November 24, 2025|

    Reviewed by Tom Sullivan

    EV battery nickel and cobalt price surge: supply risks explained for mine planners

    First reported on MINING.com

    30 Second Briefing

    Nickel in electric vehicle battery packs has reached its second-highest value on record, while cobalt has hit a 30‑month high, driven by strong demand in low‑LFP markets and buyers accelerating orders into 2025. Europe is “off to the races” next year as NMC‑dominant chemistries retain market share, contrasting with higher LFP penetration in China. US customers are also pulling forward EV purchases ahead of subsidy cuts, signalling potential near‑term tightness for Class I nickel and cobalt hydroxide supply chains.

    Technical Brief

    • Class I nickel feedstock constraints are tightening for sulphate producers supplying high‑nickel NMC cathode plants.
    • Cobalt hydroxide payables are rising, squeezing margins for refiners without long‑term offtake or mine-linked supply.
    • Spot nickel sulphate premia over LME metal are widening, affecting cost models for new HPAL projects.
    • Battery-grade nickel demand is increasingly decoupled from stainless steel, complicating traditional nickel price hedging strategies.
    • Refiners with flexible flowsheets (MHP, MSP, matte, briquettes) gain advantage in securing variable feed qualities.
    • Long-lead procurement for cathode plants now needs earlier locking of Class I nickel units to de-risk commissioning.
    • For new mine projects, higher battery premia strengthen economics for sulphide orebodies able to deliver Class I product.
    • EV supply-chain planners face higher incentive to integrate upstream (mining/refining) to stabilise cathode metal input costs.

    Our Take

    Nickel and cobalt appear in only a handful of keyword-matched pieces in our database, so a 2025 price spike will disproportionately influence project economics for marginal sulphide and laterite deposits now moving through studies in Europe and the US.

    For US and European projects targeting IRA- or EU-compliant battery supply chains, elevated nickel and cobalt values in early 2025 likely strengthen bankability cases for new HPAL, sulphide concentrator, and recycling plants, but also raise cost pressure on downstream cathode and cell manufacturers locked into fixed-price offtakes.

    With 80 tag-matched ‘Projects’ pieces in our coverage, the current nickel and cobalt pricing environment is one of the few that materially improves both greenfield feasibility metrics and restart options for previously shelved assets in these metals, unlike more mature bulk commodities where price moves tend to be less project-defining.

    Prepared by collating external sources, AI-assisted tools, and Geomechanics.io’s proprietary mining database, then reviewed for technical accuracy & edited by our geotechnical team.

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