The Effects Of Russia's Invasion Of Ukraine On The Supply Of Raw Materials For Lithium-Ion Batteries
Russia and Ukraine are the major suppliers of some critical raw materials like aluminum, copper, and nickel. Nickel, aluminum, and copper which are three essential elements in ternary cathodes (NCMs) and anodic and cathodic current collectors in lithium-ion batteries. According to Reuters, two Russian companies: Norilsk Nickel and Rusal, supply 10% of nickel and 5% of the world's aluminum, respectively.
It was expected that due to the start of the war between Russia and Ukraine and imposing sanctions against Russia, the accessibility to such raw materials produced by the two countries was limited, and their prices were reached the highest level in the last ten years. This increase has been so dramatic that from February 24 until March 3, the cost of nickel on the London Metal Exchange experienced a growth of 16% and reached $ 28,700 per tons, which is the highest price since 2011. During the same period, copper and aluminum prices also increased by more than 7% and 14%, respectively. This matter has raised concerns regarding delays in the implementation schedules of electric vehicle companies.
On the other hand, a research survey has been illustrated that more than 96 percent of Russia's nickel is mainly exported to three European countries; the Netherlands, Finland, and Switzerland. However, as the largest producer of lithium batteries, China supplies 4.6% of its nickel imports from Russia. Given the favorable political and trade relations between China and Russia, it seems that in the future, China will receive a more extensive stock of nickel matte from Russia.
Hence, it can be predicted that by imposing sanctions on Russian products by the United States and European countries, besides political relationship among China and Russia, it would be easier for China to buy battery industry raw materials from Russia at a lower price and benefit from this situation.
