The Politics of the Nickel Supply Gap

Investor webinar replay

Meeting Overview The meeting focused on the increasing demand for nickel due to its critical role in battery chemistry and green energy solutions, particularly in the context of the electric vehicle (EV) revolution. Participants discussed the challenges of meeting this demand, including the need for new nickel mines, the stagnation of exploration budgets, and the implications of government strategies to address these issues. Key Discussion Points - The projected increase in nickel demand driven by the electrification of transportation and green energy initiatives. - The significant gap between the required nickel production and current exploration budgets. - The potential for new battery technologies to replace nickel, with a consensus that no viable alternatives are imminent. - The role of government initiatives, particularly Canada's critical mineral strategy, in supporting nickel production and streamlining permitting processes. - The importance of infrastructure investments for ...

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[Speaker identities could not be resolved; generic labels used] [00:07] Speaker 1: Welcome, everybody. [00:09] Speaker 1: My name is Matthew Michelboro. I host the Junior Resource Investing Podcast. I'm just going to start with a little bit of a context just to get the conversation rolling. Then I'll introduce our guests after the fact. [00:19] Speaker 1: Nickel is set to become 1 of the most in-demand metals in the world over the coming years. This is in large part due to the integral role it plays in battery chemistry and green energy solutions. [00:29] Speaker 1: Simply put, all the ambitious government and corporate policies designed to build the next generation of electrification and green energy doesn't happen without a dramatic increase in nickel supply in a very short period of time. [00:41] Speaker 1: Consider the projections from governments and industry experts. Goals such as Canada's, that 60% of auto sales will be EV by 2030 [00:48] Speaker 1: represents a 12 fold increase over the current 5.2% [00:52] Speaker 1: market share EV vehicles currently own. [00:55] Speaker 1: Compound annual growth rates of the North American EV market are projected to be a staggering 39% [01:00] Speaker 1: between now and 2030 [01:01] Speaker 1: with a $50 billion industry today forecasted to become a $600 billion industry over that time period. [01:08] Speaker 1: In terms of simple nickel production, Wood Mackenzie projects that the 133, 000 [01:12] Speaker 1: tons of Canadian nickel produced in 2021 [01:15] Speaker 1: is set to balloon to 265, 000 [01:17] Speaker 1: tons in 2025 [01:19] Speaker 1: and 1.23 [01:20] Speaker 1: million tons in 2040, a near 10x in production in less than 20 years. [01:25] Speaker 1: And this is just the Canadian corner of a global issue. To me...