Nickel and Copper set to gain on electric vehicle surge

Commodities set to gain on green car shift

Commodities set to gain on green car shift

The rise of electric vehicles is gaining pace with more and more vehicles available and a growing infrastructure to support them. According to Morgan Stanley electric-car sales are seen to boost Nickel the most of all the commodities used in producing an electric vehicle. Here is a rundown of how they see this panning out:

Electric vehicles represent a new demand factor for Nickel which is only set to grow. They anticipate an exponential growth over the next 5-10 years from present levels of around 3%. Morgan Stanley expect a growing deficit after ‘years of underinvestment’ in new mine output, which should help support prices.

Cobalt to lose favour

Over time Cobalt is going to be filtered out of Electric vehicles batteries over the next decade in preference to Nickel. The demand for cobalt is expected to reach 71 kt by 2025 and then to drop  down to 60kt by 2030.

Copper should gain

Electric Vehicles are thought to account for 9.4% of copper demand by 2030 compared with the current level of 2.4%.

Manganese set to benefit from Tesla demand

Tesla’s new manganese rich batteries are set to drive demand for manganese too.

So, over the medium to longer term there is upside pressure for copper, Nickel and Manganese