Tesla to purchase’battery raw material’ cobalt-ear nickel directly
Increasing demand in the industry, soaring 46% of cobalt and 59% of lithium this year
LG Energy and GM are discussing the construction of an additional second battery plant in the U.S.
[아시아경제 뉴욕=백종민 특파원, 조유진 기자] Elon Musk, Tesla Chief Executive Officer (CEO), who said “nickel is the biggest concern,” took action. On the 4th (local time), a major foreign press reported, citing sources that Tesla has signed a long-term supply contract with the New Caledonian government in cooperation with the New Caledonian government, one of the largest producers of nickel.
The automaker even started to purchase raw materials for batteries. This move is evaluated as a symbolic representation of the battery securing war that is appearing as global automakers have recently turned to electric vehicles all at once.
◆Tesla, cobalt and nickel are also directly purchased = Nickel is an essential mineral in the manufacture of lithium-ion batteries. Musk said on his Twitter account last month that “nickel is the biggest concern for manufacturing lithium-ion battery cells.” Tesla previously signed a contract with Glencore, the world’s largest mining company, to supply cobalt, another essential mineral for battery manufacturing.
Foreign media assessed Tesla’s move as its intention to control the entire battery supply chain. Tesla is building a giga factory in Austin, Texas, and is promoting its own battery production.
Other automakers are responding preemptively as the US government is inspecting the supply chain for semiconductor batteries and rare earths. It is also evaluated that it is a natural step for automobile companies that have recently experienced a shortage in the supply of semiconductors for automobiles to secure a stable supply chain of batteries essential for electric vehicle manufacturing.
◆ Raw materials surge in the battery war = As global automakers have announced their strategy to switch to electric vehicles, the price of raw materials for batteries, which is the core, is skyrocketing.
According to Bloomberg News, the price of cobalt in the international commodity market rose 46.66% from the end of last year ($31,891) to $46769 per ton as of the end of last month. Nickel price also rose to $18,612 per ton, compared to the end of last year ($16,877). The price of lithium was 70 yuan, up 59.09% from the end of last year (44 yuan), and the price of manganese was also 1395 dollars, up 17.33% from the end of last year (1189 dollars).
Nickel, whose main production site is concentrated in Africa, has increased supply and demand, such as political instability and security issues, and has soared to the highest level in six years since September 5, 2014 ($19,380). The news that it is going to develop a nickel mine has been reported, and it is showing calm.
“The recent surge in nickel prices is the result of an increase in demand for batteries used in electric vehicles,” said Roskill, a consulting firm specializing in metals and minerals. “The price of nickel will continue to rise over the next 10 years.”
◆LG-GM added a battery plant = The Wall Street Journal (WSJ) cited a source on the day and reported that General Motors (GM), the largest automobile company in the United States, is considering building an additional LG Energy Solution and automobile battery plant.
WSJ said the two companies are currently building a battery factory in Ohio with $2.3 billion (about 2.7 trillion won), but are discussing the construction of another battery plant near GM’s automobile assembly plant in Spring Hill, Tennessee.
WSJ explained that GM has acknowledged the promotion of the construction of a second battery plant and stated that it will be concluded in the first half of the year. Since GM has announced that it will cease production and sales of internal combustion engine vehicles from 2035, a stable supply of batteries is essential.
LG also mentioned that it is in discussions with GM to add a battery plant. According to WSJ, LG also revealed that it plans to expand its battery manufacturing business in the US to support other automakers. Earlier, SK Innovation also revealed to the US government plans to build additional factories in Georgia.
New York = correspondent Baek Jong-min [email protected]
Reporter Jo Yu-jin [email protected]