Canada Nickel Plans to Build North America’s Largest Nickel Processing Plant
Canada Nickel Co. to Build North America’s Largest Nickel Processing Plant
Canada Nickel Co. has set its sights on constructing a state-of-the-art nickel processing plant in Ontario, with an
estimated budget of US $1 billion. Once completed, it will be the largest nickel plant in North America.
Boosting EV battery production with 80,000 Tons of Nickel Annually
The nickel processing plant is expected to produce over 80,000 tons of nickel per year, specifically for electric
vehicle (EV) batteries. Operations are scheduled to commence in 2027, as stated in a press release.
Meeting the Growing Demand for Nickel in North America
In an interview with CBC News, Canada Nickel CEO Mark Selby expressed confidence in the surging demand for nickel
in North America. He anticipates a doubling or tripling of nickel demand over the next decade as the region ramps
up its battery production. To meet this demand, Canada Nickel plans to establish a stainless steel and alloy
production plant, costing an additional USD $2 billion.
Seeking Funding for the Ambitious Project
With a current valuation of approximately US $166 million, Canada Nickel intends to secure financial support from
both the Canadian and Ontario governments to facilitate the construction of the nickel processing plant.
Filling the Gap in North America’s EV Battery Supply Chain
The establishment of the nickel processing plant is aimed at addressing the deficiency in North America’s EV
battery supply chain. While the region possesses ample reserves of raw materials like nickel, copper, and lithium,
there is a lack of infrastructure for processing and refining these resources. Currently, most metals extracted
from North American mines are sent to China for processing before being returned for use in domestic EV
manufacturing.
Nickel Price Fluctuations and the Push for Domestic Sources
In recent months, the price of nickel has experienced significant fluctuations due to an influx of supply from
Indonesia, driven by Chinese investments and technological advancements. This has led to the closure and
bankruptcy of nickel mines worldwide. However, Selby remains optimistic about the demand for North American
nickel, citing concerns over geopolitical factors and China’s control of Indonesian resources. He believes that
relying solely on Indonesia and China for nickel would not be preferable for end-users and governments in North
America.
Electrek’s Take on the Growing EV Battery Industry in North America
Under Biden’s Inflation Reduction Act, substantial investments have been channeled into battery production and
other materials in the United States. This has resulted in the construction of 14 battery plants across the
country, all with the goal of establishing a domestic supply chain and reducing dependence on China. Canada has
also made significant efforts to attract EV industry investments, offering tax breaks and access to renewable
energy sources and rare minerals. This has led to projects such as Volkswagen’s gigafactory for cell
manufacturing in Ontario and Northvolt’s zero-emissions battery factory in Quebec.
Read More of this Story at electrek.co – 2024-02-08 15:48:00
Read More US Economic News
