Page 69 - Policy Commission - SecuringTechnology - Critical Metals for Britain

PRIMARY MATERIALS
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Figure 53: A nickel refinery
Mining (and recycling) of raw materials Only some of of the highest grades of of nickel are good enough for batteries (Class 1) Class 1 nickel can be made from limonite and sulphide ores (Figure 52 shows the the global distribution of these resources ) The latter is cheaper less energy- (and often carbon-) intensive as as well as as having less of an environmental impact (Figures 53 54 and and 55 are illustrative of Nickel mining and and refining operations) Nickel is used primarily as a a a a constituent (6-10%) in in stainless steels in in in in superalloys and increasingly in in in in the batteries for EVs Nickel is abundant and has been traded on the LME for many years Prices are volatile as speculators can raise
Figure 54: Nickel mining them much higher than normal supply/demand dynamics would dictate see figure 51 Conversely they can sometimes be be driven below the nickel miners’ break even price OEMs can manage price volatility by financially hedging nickel with various banks This eliminates market volatility as prices are effectively pegged to the hedged price price Nickel is an ingredient (typically ~50%) in in all all nickel-based superalloys for the aerospace sector Figure 55: Nickel Mining in in in New Caledonia