Nickel sulfate is a crystalline inorganic chemical that is yellow, green, or blue in color and emits hazardous fumes when heated. It is employed in electroplating and as a chemical intermediary in the production of other types of nickel compounds. Nickel sulfate is a byproduct of copper processing and occurs naturally as retgersite, a rare mineral.
In the market, nickel sulfate is found in crystal and solution forms. Also, it comes in various grades, including EN grade, plating grade, high purity grade, and others.
Market Drivers and Stats
According to OMR Research, the global nickel sulfate market is projected to grow at a CAGR of 12.2% during the forecast period (2023-2029). The growth is driven by the increasing demand for nickel sulfate, which is attributed to the rapidly rising demand for electric vehicles (EVs). Nickel sulfate is the primary chemical used to produce cathode materials for lithium-ion batteries (LiBs) that have nickel. Nickel provides high energy density and increased storage capacity at a lower cost, allowing battery electric vehicles (BEVs) to go further and compete with internal combustion engine (ICE) cars.
Due to such factors, new EV manufacturers are entering the market, and old ones are increasing their EV capacities. For instance, in 2021, Toyota announced its target of 3.5 million electric car sales by 2030 and 30 new BEV model rollouts, and Volkswagen announced that by 2030, all-electric cars from the company will account for 70% of European sales, 50% of Chinese and US sales, and almost 100% of ZEV sales by 2040.
Moreover, the EV sector isn't the only source of demand. It will be complemented by battery requirements in energy storage systems. Overall, quicker expansion in battery production is a critical requirement for combating climate change, and it will necessitate investment across the value chain. As battery energy storage systems expand, the need for nickel sulfate will also increase.
According to the IEA, the amount invested globally in battery energy storage reached $10 billion in 2021. Grid-scale deployment, which accounted for more than 70% of total investment in 2021, and lithium-ion battery deployment, which accounted for more than 90% of all deployments in 2020 and 2021, are the main drivers.
Recent Developments
The key companies in the market include Anron Chemicals Co., Green Eco-manufacture Hi-Tech (GEM), Indian Platinum Pvt. Ltd., Jinco Nonferrous, Norilsk Nickel, Palm Commodities International, Seido Chemical Industry Co., Ltd., Sumitomo Metal Mining Co., Ltd., Umicore, Univertical, and others. These companies are assisting in the market’s growth through various mergers, collaborations, investments, and new product launches. Some recent developments in the market include-
• In February 2023, Umicore, a materials technology and recycling firm, and Terrafame, a Finnish state mining corporation, established a long-term supply arrangement for nickel sulfate.
• In January 2023, Stellantis N.V. and Terrafame Ltd. signed a supply agreement for nickel sulfate to be used in EV batteries. Over the course of the five-year contract, Terrafame, located in Finland, will provide Stellantis with nickel sulfate beginning in 2025. The Terrafame arrangement is part of Stellantis' ambitious electrification plan, and it will meet a sizable amount of the company's demands for sustainable, regionally produced nickel.
• In November 2022, Vale Canada Limited (a subsidiary of Vale S.A.) and General Motors Co. agreed to a long-term supply of battery grade nickel sulfate from Vale's projected factory in Bécancour, Quebec. If the project is approved, Vale would deliver battery grade nickel sulfate, equating to 25,000 metric tonnes of contained nickel per year, for use in GM's Ultium battery cathodes, which will power a variety of electric vehicles.
• In June 2022, South Korean LG Energy Solution (LGES) announced its plans to build a $3.5 billion smelter capable of producing 150,000 tonnes of nickel sulfate per year as part of a $9.8 billion investment in the nation to manufacture electric vehicle batteries.