Invest in Nickel Before it Explodes Like Lithium and Cobalt | Summary and Q&A

TL;DR

Electric vehicle demand is expected to increase significantly, leading to a higher demand for metals like nickel. Nickel prices are currently low due to oversupply and lack of attention, but deficits are expected in the future, which could drive prices higher.

Key Insights

• 🥺 Electric vehicle sales are projected to increase, leading to a higher demand for battery metals such as nickel.
• 😘 Nickel prices are currently low due to oversupply and lack of attention, but deficits are expected in the future.
• 😚 Nickel producers have a limited downside, as current production costs are close to the current price.
• 😘 Finding a profitable nickel miner with lower costs than the average could be a good investment opportunity.
• 🥺 Nickel's importance in battery production may lead to a spike in prices once the market recognizes it.
• 🚙 A 20% growth in nickel demand is expected in the next 10 years due to electric vehicles.
• 🪛 Deficits in nickel supply are already occurring, which could further drive prices higher.

Transcript

good day fellow investors we constantly hear news about Tesla about how they're going to disrupt the automotive industry and produce 500,000 cars per year now current electric vehicle sales are 1% of the total and expected to significantly grow in the future if that happens which probably it will happen I don't know if Tesla will be the winner in t... Read More

Questions & Answers

Q: What metals are used in electric vehicle batteries?

Electric vehicle batteries use lithium, cobalt, nickel, and manganese. The amount of each metal varies depending on the vehicle, with cobalt and nickel being key components in the batteries.

Q: Why are nickel prices currently low?

Nickel prices are low due to oversupply and lack of attention from the electric vehicle industry. Additionally, high stock levels in London Metal Exchange warehouses have kept prices down.

Q: What factors could lead to higher nickel prices in the future?

The expected increase in electric vehicle demand and slower growth in nickel supply compared to demand could lead to deficits and higher prices. Once market recognizes nickel's importance in battery production, prices may spike.

Q: What should investors look for in a nickel miner for potential investment?

Investors should look for a miner that is already profitable at current prices, offers a stable dividend, has lower costs than the average, and has minimal debt. This would provide a margin of safety and potential for significant returns.

Summary & Key Takeaways

• Electric vehicle sales are projected to grow, creating a greater need for battery metals such as nickel, cobalt, and manganese.

• Nickel prices have been falling due to oversupply and lack of attention, but if electric vehicle demand increases, deficits are expected, leading to higher prices.

• Nickel producers currently have a limited downside due to low production costs, and finding a profitable miner could be a potential investment opportunity.