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Nickel has surpassed lithium as the most valuable battery metal used in electric vehicles (EVs) so far this year, according to a new report by Toronto-based research firm Adamas Intelligence.
By Ryan Chigoche
This shift comes despite falling prices across the battery metals sector and growing adoption of nickel-free battery chemistries.
Much like cobalt and lithium, nickel has endured extreme price volatility since the EV boom sent demand projections sky-high. A memorable peak occurred in March 2022, when a short squeeze involving Elliott Management’s Paul Singer and Tsingshan’s Xiang Guangda drove prices above $100,000 per tonne within minutes.
The incident triggered over $12 billion in cancelled trades, legal disputes, and a major rethink of the London Metal Exchange’s rules—but its market impact was short-lived.
Nickel sulphate prices, used in EV battery cathodes, briefly soared above $30,000 per tonne (100% Ni basis) but have steadily declined since, averaging around $17,000 in the second quarter of 2025.
Lithium’s fall has been even steeper. After peaking above $80,000 per tonne in late 2022, prices collapsed to $8,450 by June this year—a nearly 90% drop in under three years.
Yet despite these price corrections, nickel has taken the lead in deployed value in EVs. Between January and May 2025, global EV sales consumed $2.2 billion worth of nickel, edging out lithium’s $2.15 billion, according to the Adamas Intelligence data.
This trend highlights the continuing importance of nickel-rich chemistries in EV battery design, particularly for high-performance and long-range vehicles.
This comes even as nickel-free alternatives like lithium iron phosphate (LFP) gain traction. LFP batteries now represent nearly half of all EV battery capacity deployed this year, a dramatic rise from less than 1% at the start of the decade.
In Zimbabwe, the nickel landscape reflects broader global challenges. The country’s largest nickel producer, Bindura Nickel Corporation (BNC), remains shut due to ongoing operational and financial difficulties.
As a result, national output is now primarily derived from PGM operations run by major players such as Zimplats, Mimosa Mining Company, and Unki Mine, where nickel is recovered as a byproduct.
Despite the price slump and supply shifts, nickel continues to hold its ground as a critical material in the energy transition—remaining a key target for investors and battery manufacturers alike.
