Russia’s invasion of Ukraine has caused chaos in the global supply chain, affecting everything from energy prices to the supply of fertiliser. As Western powers sanction Russia, the prices of nickel, a vital metal that’s a key component of electric vehicle batteries have skyrocketed to record levels. Earlier this month, the price of nickel spiked 90 percent to reach an all-time high.
A major reason for this is that Russia currently supplies the world with around a tenth of its global nickel needs, which are mainly used for stainless steel and EV batteries.
Britishvolt, a UK startup that’s working to build the country’s first large-scale gigafactory is leading the way in safeguarding its supply of nickel in the face of Russia’s influence.
They have signed a deal with VKTR, a leading Indonesian company, to establish a nickel sulphate facility in Indonesia, to ensure the supply of the battery raw material to Britishvolt’s first full-scale gigaplant in Northumberland, UK.
While Russia is a major supplier of nickel to the EU, Indonesia is the world’s largest nickel producing country and is rapidly building out its own electric vehicle industry.
The two companies are also looking into developing an electric battery gigaplant in Indonesia as well.
Orral Nadjari, the CEO and Founder of Britishvolt said: “Indonesia has enormous, unprecedented potential that will see global investment flow into the country as it aims to become a world leader on the international battery stage.
“I am delighted to be part of Indonesia’s journey to net-zero, and I look forward to seeing the outcome of this partnership with VKTR.
“I am also proud to be helping establish a secure supply of nickel to the UK at a time when raw materials are in the spotlight as the age of the battery really gets going.
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“Secure, sustainable supply chains are essential for a successful energy transition.”
Timon Orlob, Global Chief Operating Operator, Britishvolt: “These announcements demonstrate Britishvolt’s commitment to securing essential battery cell ingredient nickel sulphate.
“The deal gives us security of nickel from the largest source in the world.”
In the midst of this crisis, Tesla and other electric vehicle companies are facing a difficult situation as the price of nickel, a key component of electric vehicle batteries rise to record levels.
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