The Case for Kun-Manie
Nickel Supply - Not All Nickel Deposits Are Created Equal
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Battery makers require high purity Nickel to create the sulphates used in the
manufacturing of EV battery cathodes
Ferro-Nickel production from Saporite (lateritic) deposits are not suitable for
battery grade Nickel, although they account for almost 50% of all current
production
Nickel sulphide deposits are the best source of battery grade Nickel however
they only account for c. 40% of global production (c. 800K of world production
in 2016)
To meet the projected demand production from Sulphide deposits would have
to at least double over the next 7 years, an unprecedented feat and counter to
current trends
All current and in development EV batteries will have significant quantities of
Nickel making up to between 20-52% of the battery raw material
The next generation of batteries expected to use more nickel due to its energy
density
"Only 50% of world nickel mine production is
potentially suitable to become a battery
product" UBS July 2017
"Kurt Kelty, Tesla's former battery
Director...estimated that there may not be
sufficient nickel available at EV penetrations
between 10-15% by 2025" - BAML Oct 2017
"Assuming that NMC battery technology will
end half-way between 1:1:1/8:1:1 batteries
and Tesla will continue to use NCA storage
solutions, we believe the nickel market is on
track to switch into sustained deficits, which
could increase to 717kt by 2025, if investment
into nickel production is not fostered in the
coming years" - BAML Oct 2017
Amur
Minerals
¹UBS July 2017 2Cru market study 2017
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