Connect with us
tesla-ford-nickel-supply-deal tesla-ford-nickel-supply-deal

News

Morgan Stanley warns that nickel price surge could add $1k to electric vehicle costs

(Credit: BHP)

Published

on

With electric vehicles becoming more prolific, raw materials used in battery packs have become hot commodities. And according to Morgan Stanley analyst Adam Jonas, the rising price of one particular material — nickel — could result in general electric vehicle prices seeing a $1,000 price increase. 

Nickel has seen a rapid rise as of late, with the material surging above $100,000 a metric ton on the London Metal Exchange. This prompted a trading halt. Several reasons are behind nickel’s price surge, which saw the material go up 250% in the past two days, though it is believed that a driving factor is Russia’s ongoing invasion of Ukraine. 

Since Russia is one of the most prolific producers of nickel, potential sanctions for the material could result in nickel supply being limited to Western suppliers and manufacturers. Jonas, in his note, stated that Morgan Stanley has been predicting a nickel shortfall by 2026 that would keep rising until the end of the decade, and that was before Russia opted to attack Ukraine. 

If sanctions against Russian nickel are indeed implemented, Jonas noted it’s “probably time for investors to take auto company earnings forecasts down.” Following Russia, after all, Indonesia stands as the biggest source of nickel, but the country is still in the process of ramping its production of the material. Other notable nickel mines are also expected to enter operations years from now. 

Considering the demand for electric vehicles and automakers’ own EV targets, one could imagine just how much nickel is needed. Tesla delivered more than 900,000 vehicles last year, and the company intends to keep an annual growth of 50%. Ford wants to make 2 million electric vehicles by 2026, GM is looking to sell 1 million EVs by mid-decade, and Stellantis intends to sell 5 million electric cars by the end of 2030. That’s a lot of electric cars, a good number of which would likely need nickel. 

Advertisement

The Morgan Stanley analyst, for his part, noted that electric car makers like Tesla and Ford could explore battery technologies that use no nickel. Tesla is already doing this with its vehicles that are equipped with lithium iron phosphate batteries (LFP) batteries. Granted, such batteries are best used for entry-level cars like the base Model 3, but they do allow companies like Tesla to produce EVs at scale without relying on nickel. It remains to be seen if companies such as Ford and GM would adopt similar strategies when they roll out their planned mass-market EVs. 

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

Advertisement
Comments

News

SpaceX aces Starship test flight 10 with successful payload deployment

The mission began at 6:30 p.m. local time in Starbase, Texas, when the launch of Starship initiated. After about eight minutes, stage separation was completed, and the Super Heavy Booster headed back down to Earth for a planned splashdown in the Indian Ocean:

Published

on

Credit: SpaceX

SpaceX aced its tenth Starship test flight on Tuesday night after multiple delays pushed the mission back to this evening. Originally scheduled for Sunday night, SpaceX had two delays push the flight back to Tuesday, which ultimately provided ideal conditions for a launch attempt.

The tenth test flight of Starship had several objectives, including a successful splashdown of the booster in the Gulf of America, the deployment of eight Starlink simulation modules from the PEZ dispenser, and a splashdown of the ship in the Indian Ocean.

SpaceX Starship Flight 10: What to expect

SpaceX successfully achieved all three of these objectives, making it one of the most successful test flights in the Starship program. There was no attempt to catch the booster this evening, as the company had been transparent about it ahead of the launch.

The mission began at 6:30 p.m. local time in Starbase, Texas, when the launch of Starship initiated. After about eight minutes, stage separation was completed, and the Super Heavy Booster headed back down to Earth for a planned splashdown in the Indian Ocean:

Starship was then the main focus of the rest of the broadcast as it completed its ascent burn and coasted through space, providing viewers with spectacular views as the mission headed toward new territory, including the deployment of Starlink simulators. This would be the first time SpaceX would attempt a payload deployment.

The deployment works like a PEZ dispenser, as the simulators were stacked on top of one another and would exit through a small slit one at a time.

This occurred roughly 20 minutes into the mission:

An hour and six minutes into the flight, Starship reached its final destination, which was the Indian Ocean. A successful splashdown would bring closure to Starship’s tenth test flight, marking the fifth time a test flight in the program’s history did not end with vehicle loss.

It was also the first of four test flights this year that will end with Starship being recovered.

SpaceX is expected to launch Starship again in approximately eight weeks, pending the collection of data and other key metrics from this flight.

Continue Reading

News

WATCH: SpaceX attempts Starship’s tenth test flight after two delays

This evening, SpaceX has already stated that conditions appear to be approximately 45 percent favorable for launch. This is ten percent less than last night, when the mission was eventually scrapped around 7 p.m. local time.

Published

on

Credit: SpaceX

SpaceX is set to launch Starship tonight, provided the weather cooperates and everything with the ship goes smoothly.

This is SpaceX’s third attempt to launch Starship for its tenth test flight, with Sunday’s and Monday’s attempts both being scrapped due to a leak and unfavorable weather conditions on the respective days.

This evening, SpaceX has already stated that conditions appear to be approximately 45 percent favorable for launch. This is ten percent less than last night, when the mission was eventually scrapped around 7 p.m. local time.

SpaceX Starship Flight 10: What to expect

Propellant load of the upper stage and Super Heavy booster is already underway, and the launch is expected to occur at 6:30 p.m. in Starbase, Texas.

You can watch the tenth test flight of Starship below via SpaceX:

Continue Reading

News

Tesla one-ups Waymo once again with latest Robotaxi expansion in Austin

Tesla’s new Robotaxi geofence measures roughly 171 square miles of Austin’s downtown and suburbs. This is more than double the size of Waymo’s geofence, which measures 90 square miles.

Published

on

Credit: @BLKMDL3 | X

Tesla’s expansion of the Robotaxi geofence on Tuesday morning was a one-up on Waymo once again, as the automaker’s service area growth helps eclipse its rival in an intense back-and-forth.

A lot of conversation has been made about Tesla’s rivalry with Waymo in terms of the capabilities of its driverless ride-sharing service in Austin, Texas.

The two companies have sparred with one another, answering each other’s expansion, and continuing to compete, all to the benefit of consumers in the region.

Tesla expanded the geofence of Robotaxi once again this morning, and it is another growth that catapults it past Waymo’s service area in Austin — this time by a considerable margin.

Tesla’s new Robotaxi geofence measures roughly 171 square miles of Austin’s downtown and suburbs. This is more than double the size of Waymo’s geofence, which measures 90 square miles.

On July 14, Tesla officially overtook Waymo in terms of service area in Austin. But just a few days later, Waymo had responded with a bold statement, expanding from 37 square miles to 90 square miles.

Sarfraz Maredia, Global Head of Autonomous Mobility & Delivery at Uber, said the move “unlock[ed] another key milestone in Austin as our operating territory with Waymo expands from 37 to 90 square miles, which means that even more riders can experience Waymo’s fully autonomous vehicles through the Uber app.”

Tesla did not respond immediately, but it took its time with validation vehicle testing in the Austin suburbs, as we reported yesterday:

Tesla looks to expand Robotaxi geofence once again with testing in new area

Today’s expansion is perhaps the biggest step Tesla has taken in its efforts to continue to grow its Robotaxi platform. This is not only because the company has significantly expanded the size of the geofence, but also because it has ventured into suburban areas and even included Gigafactory Texas in its service area.

Waymo could come up with another timely response as it did when Tesla expanded in late July. We’ll wait to see what it comes up with, as this awesome competition between the two companies is accelerating innovation.

Continue Reading

Trending