Canada Nickel Co, a Toronto-based mining company, announced on Thursday that it plans to raise $1 billion to build a nickel processing plant in Ontario. The plant will produce nickel, cobalt and iron products that are suitable for the electric vehicle (EV) battery market.
The company said it is in talks with the Canadian government, the US Department of Defense and other partners in the battery supply chain to secure the funding. It expects to start production in 2027 and process 80,000 tonnes of nickel annually.
Nickel is a key ingredient in lithium-ion batteries that power EVs, as well as other applications such as renewable energy storage and stainless steel. However, most of the world’s nickel supply comes from Indonesia, where the mining and smelting process emits large amounts of carbon dioxide and sulfur dioxide, contributing to climate change and air pollution.
Canada Nickel’s plant, dubbed NetZero Metals, aims to produce nickel with zero carbon footprint by using hydroelectric power and electric furnaces, as well as capturing and storing any carbon and sulfur emissions. The company also claims that its nickel products will have a lower cost than the current market price.
“We are creating a new segment of the nickel market that does not exist today,” said Mark Selby, the CEO of Canada Nickel. “The car companies and battery supply chain know that the amount of nickel needed in North America is going to double and triple over the next decade. What they want is responsibly produced, clean, green nickel in North America.”
Canada Nickel Company is actively developing a nickel mine in Ontario known as the Crawford project. The company hopes to integrate the mine with the processing plant to create a vertically integrated operation that can supply the growing demand for green nickel.
The announcement by Canada Nickel comes as the global nickel market faces a supply deficit and rising prices, driven by the surge in EV sales and the transition to a low-carbon economy. According to a report by Roskill, a consultancy firm, the nickel demand for batteries is expected to grow by 15% per year until 2030, reaching 1.2 million tonnes.
Canada Nickel’s project is one of several initiatives that aim to establish a domestic battery supply chain in North America, which currently relies heavily on imports from Asia. Other examples include Tesla’s battery factory in Nevada, General Motors’ joint venture with LG Chem in Ohio, and the US Department of Energy’s research program on battery innovation.
By producing green nickel in Canada, the company hopes to not only capture a lucrative market opportunity, but also contribute to the global efforts to reduce greenhouse gas emissions and combat climate change.
“We believe that we have a unique opportunity to create significant value for our shareholders, while at the same time doing something great for the environment,” Selby said.
Source: Mining.com
