The ongoing conflict between Ukraine and Russia continues to impact the global economies on several fronts. The latest to the list of concerns is the prices of Nickel that have hit a new all-time high in London, leaving the participants of the electric vehicle (EV) industry under pressure.
As per a Bloomberg article, the three-month nickel contract surged a solid 90% to $55,000 a metric ton on the London Metal Exchange.
Due to its high energy density, Nickel is used in making batteries for EV, the most expensive part of the vehicle. Notably, Russia provides about two-thirds of global nickel production.
The Russian invasion has also hiked the cost of other raw materials. Aluminum, which is used in making the body parts of cars, rose to record highs last week. Also, Palladium, used to reduce emissions from engines, has increased about 80%.
The vehicle market was already marred by the global chip shortage issues, which had caused prices to rise so far. Thus, considering the rising costs of other raw materials, automakers are unlikely to provide affordable EVs in the near term.
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