North America’s largest $1b EV nickel plant underway
TL/DR –
Canada Nickel Co. plans to invest $1 billion in building North America’s largest nickel processing plant in Ontario, with the capacity to produce over 80,000 tons of nickel annually for EV batteries. The company plans to commence operations in 2027 and also aims to construct a stainless steel and alloy production plant to process nickel and chromium concentrate, which would cost an additional $2 billion. Canada Nickel seeks government funding to build this plant, which would bolster North America’s EV battery supply chain, currently lacking the necessary infrastructure to process and refine raw materials like nickel, copper, and lithium.
Canada Nickel Co. Plans Billion Dollar Nickel Processing Plant
Canada Nickel Co. intends to spend $1 billion on the establishment of a nickel processing plant in Ontario, potentially the largest in North America. The plant is rumored to have a capacity to produce over 80,000 tons of nickel annually, aimed at EV batteries production, commencing operations by 2027, as per the official statement.
“The demand for nickel is set to double or triple over the upcoming decade with the upsurge in battery production in North America,” remarked Mark Selby, the CEO of Canada Nickel, in a conversation with CBC News.
Besides, the company plans on developing a stainless steel and alloy production facility to process nickel and chromium concentrate, accumulating an additional cost of $2 billion. With a valuation around $166 million, Canada Nickel seeks funding from both the Canadian and Ontario governments.
The aspiration behind the venture is to bridge the gap in North America’s EV battery supply chain. While it abounds in raw materials necessary for EV batteries like nickel, copper, and lithium, North America lacks the infrastructure for their processing and refinement (Electrek).
Currently, most metals extracted from North American mines are exported to China for processing, only to be sent back for usage in domestic EVs. However, the recent influx of nickel from Indonesia, fuelled by Chinese investments and technological breakthroughs, has resulted in a major drop in its price (Bloomberg).
Despite the market conditions, Selby anticipates a surge in demand for North American nickel due to the push for domestic sources of battery metals. He notes, “Nickel is viewed as a strategic metal. Given the geopolitics and China’s control over Indonesian resources, relying solely on them is not something most end-users and governments here desire.”
Efforts to build a domestic supply chain and reduce dependency on China are underway, with significant investments being funnelled into battery and materials construction in the US through the Biden’s Inflation Reduction Act (Electrek). Similarly, Canada has attracted new investments from the EV industry, with Canadian industry minister Francois-Philippe Champagne actively promoting EV investments (CTV News).
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