The Deadly Mining Complex Powering the EV Revolution
bloomberg.comArchive Link: https://archive.is/5nXkR
The share of nickel production going into batteries has risen quickly in recent years:
https://www.statista.com/statistics/1257902/share-of-nickel-...
15% of consumption in 2022, up from 3% in 2015.
Nonetheless, stainless steel is still the largest consumer by far:
https://www.usgs.gov/centers/national-minerals-information-c...
Nickel is primarily sold for first use as refined metal (cathode, powder, briquet, etc.) or ferronickel. About 65% of the nickel consumed in the Western World is used to make austenitic stainless steel. Another 12% goes into superalloys (e.g., Inconel 600) or nonferrous alloys (e.g., cupronickel). Both families of alloys are widely used because of their corrosion resistance. The aerospace industry is a leading consumer of nickel-base superalloys. Turbine blades, discs and other critical parts of jet engines are fabricated from superalloys. Nickel-base superalloys are also used in land-based combustion turbines, such those found at electric power generation stations. The remaining 23% of consumption is divided between alloy steels, rechargeable batteries, catalysts and other chemicals, coinage, foundry products, and plating.
I expect that the share of consumption going to batteries will plateau this decade, since nickel-free lithium iron phosphate batteries are rapidly growing market share:
https://source.benchmarkminerals.com/article/what-to-expect-...
The rise of cheaper lithium iron phosphate (LFP) batteries will continue this year, with the cell chemistry set to account for almost 50% of all market demand. LFP cells are forecast to increase their market share to 48% in 2024, from 45% of demand in 2023, according to Benchmark’s Lithium Ion Battery Database.
And sodium ion batteries free of nickel and lithium are now commercially available and ramping up production:
"China's first large-scale sodium battery energy storage station now operational" https://news.ycombinator.com/item?id=40454047
"Lithium-free sodium batteries exit the lab and enter US production" https://news.ycombinator.com/item?id=40248627
Which is to say that safety conditions in Indonesian nickel facilities will probably still be poor, but won't have a lot to do with batteries.
The headline is misleading since not only is nickel mostly used in stainless steel but also the dramatic incident that opens the article as narrative hook is at a facility that produces stainless steel: "The metal is a crucial component for making stainless steel, the purpose of the facility where the explosion occurred."
Bloomberg will seemingly run any story a lobbyist asks them to.