Elon Musk
Elon Musk has had it with nickel.
It’s scarce and expensive, so the chief executive officer of electric-carmaker Tesla tweeted last week that the company’s shifting some cars to a type of battery that uses iron instead.
Musk has previously pleaded with miners to produce more nickel. Supplies will be tight for the next three years, and there could be a significant deficit as early as 2023 as demand picks up, according to BloombergNEF analyst Allan Ray Restauro.
Nickel is a key component in lithium-ion batteries, used in electric vehicles. It packs more energy into batteries and allows producers to reduce use of cobalt, which is more expensive and has a less transparent supply chain.
The metal has rallied 16% this year on the London Metal Exchange amid a broad-based rally in commodities, with investors betting on strong demand growth as economies reopen.