Davis Index: Market Intelligence for the Global Metals and Recycled Materials Markets

Australian exploration firm Pure Minerals has entered a non-binding supply agreement with LG Chem for nickel and cobalt. 


According to media reports, LG will purchase 10,000mt of nickel and 1,000mt of cobalt from Pure Minerals’ Townsville Energy Chemicals Hub. The former manufactures batteries, which it sells to electric vehicle firms such as Tesla and Hyundai. Both companies  recently began building new plants to manufacture more EVs over the coming years. With the growth of these automobiles, nickel demand has surged. 


To meet higher demand, mining projects in Indonesia, Brazil and Australia are increasing in order to avoid a market deficit. However, the New Caledonia mine, which houses one of the world’s largest deposits, has been placed under care and maintenance by Vale because it could not secure a buyer.

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