Canada Nickel Co. is planning to invest $1 billion in building a nickel processing plant in Ontario, which will become the largest in North America upon completion.
According to a press release, the plant will have the capacity to produce over 80,000 tons of nickel annually, which will be used for electric vehicle batteries. Operations are planned to commence in 2027.
“Over the next 10 years, we will see a doubling or tripling of nickel demand as battery production ramps up here in North America,” said Mark Selby, CEO of Canada Nickel, in an interview with CBC News. The company also plans to build a stainless steel and alloy plant for processing nickel and chrome concentrate, which will cost an additional $2 billion, according to CEO Mark Selby. Canada Nickel is valued at approximately $166 million, and the company plans to secure funding from both the Canadian government and the government of Ontario to support the plant’s construction.
The company’s plan aims to fill the gap in the supply chain for electric vehicle batteries in North America, which has abundant resources such as nickel, copper, and lithium but lacks the infrastructure for their processing and refining.
Most of the metals mined in North America are shipped to China for processing and then returned to North America for use by Western car manufacturers in electric vehicles.
However, the price of nickel has significantly declined in recent months due to a new abundant supply from Indonesia, driven by Chinese investments and technological breakthroughs, as reported by Bloomberg. Nickel mines worldwide are at risk of closure, and some are seeking financial assistance or filing for bankruptcy.
Nevertheless, Selby told Bloomberg that he expects a sharp increase in demand for American nickel as there is a push for sourcing domestic metals for batteries.
“Nickel has always been seen as a strategic metal,” Selby said. “Given the current geopolitical situation and Chinese control over Indonesian resources, I don’t think many end users and governments want to rely solely on Indonesia and China for nickel.”
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