Good News for Korean Battery Makers
The price of nickel fell more than 20 percent in one month whereas the price of lithium is still high. South Korean electric vehicle (EV) battery manufacturers are breathing a sigh of relief unlike their Chinese counterparts. This is because they use a lot of nickel and lithium in manufacturing their main products, NCM and LFP batteries, respectively.
According to the Korea Mineral Resource Information Service, the nickel price per ton was US$26,180 on May 18, 21.38 percent lower than the previous month’s average. In addition, the cobalt price per ton was US$74,660, 8.72 percent lower, and cobalt oversupply is predicted to continue until next month with demands for computers and other consumer electronics falling.
These price trends are good news for LG Energy Solution, SK On and Samsung SDI. In their main products, nickel, cobalt and manganese are used as cathode materials. In addition, they are increasing their production of high-nickel batteries with a nickel content of at least 90 percent.
On the other hand, Chinese EV battery manufacturers are concentrating on batteries dependent on lithium. On May 18, the lithium price was 428,500 yuan per ton, 276.94 percent higher than the 2021 average. This means the gap between the prices of NCM and LFP batteries is narrowing and the latter is losing its biggest advantage.