Fluctuations and Innovations: The Changing Landscape of Battery Materials Market – April 14, 2023

The battery materials market

The battery materials market is experiencing fluctuations due to the sustained weak sentiment in aggregate demand. According to CRU, cobalt metal, and sulfate prices have decreased due to a lack of buying interest in the auto market. Despite this, Tsingshan, a significant player in the nickel and stainless market, plans to increase its presence in the battery sector by undertaking an IPO of its battery subsidiary REPT Battero Energy in Hong Kong this year. Tsingshan has invested heavily in new capacities in Indonesia, mainly nickel pig iron (NPI), which has led to a significant rise in class 2 material. However, this growth has outpaced demand from the stainless sector, leading to large discounts for NPI/Ferronickel. As a result, Tsingshan has started converting NPI lines to produce nickel matte, as there is strong demand for nickel sulfate in EV batteries.

Indonesia has three HPAL projects producing a mixed hydroxide precipitate (MHP) containing nickel and cobalt. The MHP can be used to produce nickel sulfate or class 1 material. With more HPAL capacity commissioned, MHP output is forecast to rise over the next few years. However, even with more HPAL capacity, there is still a need for NPI matte to meet nickel sulfate demand growth from the EV sector.

Meanwhile, Chinese battery giant CATL is planning to begin mass production and delivery of M3P batteries that use a new materials technology this year. According to company chairman Zeng Yuqun, the M3P technology has greater energy density and performs better than lithium-ion phosphate versions. CATL claims that combining M3P technology with the company’s next generation of battery-pack technology will enable an EV to run 700 km per charge. Industry reports suggest that M3P batteries combine magnesium, zinc, aluminum, and other metals to replace iron and form a new phosphate-based ternary chemistry.

The battery materials market is experiencing many changes due to the demand from the EV sector. As companies continue to invest in new capacities and technologies, it will be interesting to see how the market evolves in the coming years. With the demand for nickel sulfate continuing to rise, there is a need for innovative solutions that can meet this demand sustainably and cost-effectively. As the market continues to evolve, companies need to keep up with the latest developments and trends to stay competitive and meet the needs of their customers.