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.
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.
Elon Musk
Tesla Megapack powers $1.1B AI data center project in Brazil
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
Tesla’s Megapack battery systems will be deployed as part of a 400MW AI data center campus in Uberlândia, Brazil. The initiative is described as one of Latin America’s largest AI infrastructure projects.
The project is being led by RT-One, which confirmed that the facility will integrate Tesla Megapack battery energy storage systems (BESS) as part of a broader industrial alliance that includes Hitachi Energy, Siemens, ABB, HIMOINSA, and Schneider Electric. The project is backed by more than R$6 billion (approximately $1.1 billion) in private capital.
According to RT-One, the data center is designed to operate on 100% renewable energy while also reinforcing regional grid stability.
“Brazil generates abundant energy, particularly from renewable sources such as solar and wind. However, high renewable penetration can create grid stability challenges,” RT-One President Fernando Palamone noted in a post on LinkedIn. “Managing this imbalance is one of the country’s growing infrastructure priorities.”
By integrating Tesla’s Megapack systems, the facility will function not only as a major power consumer but also as a grid-supporting asset.
“The facility will be capable of absorbing excess electricity when supply is high and providing stabilization services when the grid requires additional support. This approach enhances resilience, improves reliability, and contributes to a more efficient use of renewable generation,” Palamone added.
The model mirrors approaches used in energy-intensive regions such as California and Texas, where large battery systems help manage fluctuations tied to renewable energy generation.
The RT-One President recently visited Tesla’s Megafactory in Lathrop, California, where Megapacks are produced, as part of establishing the partnership. He thanked the Tesla team, including Marcel Dall Pai, Nicholas Reale, and Sean Jones, for supporting the collaboration in his LinkedIn post.
Elon Musk
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools.
Starlink is now powering Europe’s first commercial satellite-to-smartphone service, as Virgin Media O2 launches a space-based mobile data offering across the UK.
The new O2 Satellite service uses Starlink’s low-Earth orbit network to connect regular smartphones in areas without terrestrial coverage, expanding O2’s reach from 89% to 95% of Britain’s landmass.
Under the rollout, compatible Samsung devices automatically connect to Starlink satellites when users move beyond traditional mobile coverage, according to Reuters.
The service initially supports text messaging along with apps such as WhatsApp, Facebook Messenger, Google Maps and weather tools. O2 is pricing the add-on at £3 per month.
By leveraging Starlink’s satellite infrastructure, O2 can deliver connectivity in remote and rural regions without building additional ground towers. The move represents another step in Starlink’s push beyond fixed broadband and into direct-to-device mobile services.
Virgin Media O2 chief executive Lutz Schuler shared his thoughts about the Starlink partnership. “By launching O2 Satellite, we’ve become the first operator in Europe to launch a space-based mobile data service that, overnight, has brought new mobile coverage to an area around two-thirds the size of Wales for the first time,” he said.
Satellite-based mobile connectivity is gaining traction globally. In the U.S., T-Mobile has launched a similar satellite-to-cell offering. Meanwhile, Vodafone has conducted satellite video call tests through its partnership with AST SpaceMobile last year.
For Starlink, the O2 agreement highlights how its network is increasingly being integrated into national telecom systems, enabling standard smartphones to connect directly to satellites without specialized hardware.
Elon Musk
Elon Musk’s Starbase, TX included in $84.6 million coastal funding round
The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Elon Musk’s Starbase, Texas has been included in an $84.6 million coastal funding round announced by the Texas General Land Office (GLO). The funds mark another step in the state’s ongoing beach restoration and resilience efforts along the Gulf Coast.
Texas Land Commissioner Dawn Buckingham confirmed that 14 coastal counties will receive funding through the Coastal Management Program (CMP) Grant Cycle 31 and Coastal Erosion Planning and Response Act (CEPRA) program Cycle 14. Among the Brownsville-area recipients listed was the City of Starbase, which is home to SpaceX’s Starship factory.
“As someone who spent more than a decade living on the Texas coast, ensuring our communities, wildlife, and their habitats are safe and thriving is of utmost importance. I am honored to bring this much-needed funding to our coastal communities for these beneficial projects,” Commissioner Buckingham said in a press release.
“By dedicating this crucial assistance to these impactful projects, the GLO is ensuring our Texas coast will continue to thrive and remain resilient for generations to come.”
The official Starbase account acknowledged the support in a post on X, writing: “Coastal resilience takes teamwork. We appreciate @TXGLO and Commissioner Dawn Buckingham for their continued support of beach restoration projects in Starbase.”
The funding will support a range of coastal initiatives, including beach nourishment, dune restoration, shoreline stabilization, habitat restoration, and water quality improvements.
CMP projects are backed by funding from the National Oceanic and Atmospheric Administration and the Gulf of Mexico Energy Security Act, alongside local partner matches. CEPRA projects focus specifically on reducing coastal erosion and are funded through allocations from the Texas Legislature, the Texas Hotel Occupancy Tax, and GOMESA.
Checks were presented in Corpus Christi and Brownsville to counties, municipalities, universities, and conservation groups. In addition to Starbase, Brownsville-area recipients included Cameron County, the City of South Padre Island, Willacy County, and the Willacy County Navigation District.
Tesla Megapack powers $1.1B AI data center project in Brazil
Starlink powers Europe’s first satellite-to-phone service with O2 partnership
