Sanctioned Russian nickel could slow global EV adoption, report

Sanctioning Russian nickel will slow the adoption of electric vehicles (EVs) and hinder the decarbonization of Western economies, according to a new […]
(Image by Noya Fields, Flickr).

Sanctioning Russian nickel will slow the adoption of electric vehicles (EVs) and hinder the decarbonization of Western economies, according to a new report from GlobalData.

The result, such actions will simply mean "Western countries will be more reliant on Russian oil and gas for longer," the analysts argue.

According to GlobalData's Mining Commodity Analyzer, Russia was the third-largest nickel producer in 2021, producing over 200,000 tonnes. As nickel is used in the production of EV batteries, any sanctions placed on Russian nickel will cause EV manufacturing prices to increase further, threatening adoption and decarbonization.

"Geopolitical issues such as the Russia-Ukraine situation disturb the fine balance of battery metal supply chains. A skyrocketing nickel price would have major repercussions on countries' climate ambitions worldwide and will ultimately hamper the adoption of EVs," said the group's thematic research team analyst, Daniel Clarke, in a press statement.

"Now is a critical time for EV adoption, as advanced economies aim to accelerate decarbonization. However, the extra costs will be felt somewhere, either hitting automakers' profits or being passed on to customers."

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