Prices of nickel have soared over 100% in the last few days as the Russia-Ukraine war has triggered a shortage of the metal, threatening to disrupt production of batteries for electric vehicles.
The increased prices may also drag the margins of the EV industry.
Nickel prices soared by as much as 111% on March 8, momentarily surpassing $100,000 per tonne. The London Metal Exchange (LME) halted trade due to the surge when three-month nickel was up 66 percent at $80,000 per tonne.
Nickel inventories in LME-registered warehouses have fallen to 75,012 tonnes, the lowest level since 2019.
United States president Joe Biden wants a rapid shift to EVs to stop “tyrants like Putin” using fossil fuels as weapon.
"Loosening environmental regulations won’t lower prices. But transforming our economy to run on electric vehicles, powered by clean energy, will mean that no one will have to worry about gas prices. It will mean tyrants like Putin won’t be able to use fossil fuels as a weapon," said Biden.
The comments from Biden came as the US announced a ban on oil, gas and coal imports from Russia.
Russia supplies the world with about 10% of its nickel needs.
Also Read: Global shares slip as oil surges in volatile trade after US ban on Russian crude
Also Read: UK to phase out Russian oil imports by end of 2022
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