Nickel prices have been declining amid lacklustre demand from the EV sector

Nickel prices have declined due to decreased demand for electric vehicle (EV) battery materials, influenced by cuts in government subsidies. This reduction in EV demand directly affects the need for nickel, essential in battery production.

Additionally, the costs of critical battery components such as cathode materials, cobalt, and copper in China have fallen. An oversupply of lithium carbonate, crucial for lithium-ion battery cathodes, also points to lower battery demand, further depressing nickel prices. This situation is exacerbated by a general decrease in raw material costs within the battery production industry.

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Globally, nickel prices are dropping amid a wider downturn in non-ferrous metal prices, with a significant real estate slump in China, a major nickel consumer, adding to downward pressures. The market's focus has shifted from speculative interest in nickel's role in renewable energy and EVs to more pronounced selling pressures, signaling a recalibration of demand and supply dynamics in the nickel market.