Canada Nickel Co. has announced plans to invest US $1 billion in constructing a nickel processing plant in Ontario, slated to become the largest of its kind in North America upon completion, according to a press release.
Scheduled to commence operations in 2027, the plant aims to produce over 80,000 tons of nickel annually for electric vehicle (EV) batteries, stated Mark Selby, the chief executive of Canada Nickel, in an interview with CBC News.
Additionally, the company intends to erect a stainless steel and alloy production facility for processing nickel and chromium concentrate, an endeavor estimated to cost an additional USD $2 billion, as per CEO Mark Selby.
With a current valuation of approximately US $166 million, Canada Nickel plans to pursue funding from both the Canadian and Ontario governments to support the construction of the plant.
The company’s initiative seeks to address the existing gap in North America’s EV battery supply chain, which possesses abundant raw materials such as nickel, copper, and lithium but lacks the requisite infrastructure for processing and refining them.
Presently, metals extracted from North American mines are often sent to China for processing before being returned for use by domestic automakers in EVs.
However, the nickel market has experienced a significant decline in prices in recent months due to a surge in fresh supply from Indonesia, propelled by Chinese investments and technological advancements, reported Bloomberg. This has led to the risk of nickel mines worldwide facing closure, with some seeking bailouts or declaring bankruptcy.
Nonetheless, Mark Selby expressed optimism regarding the growing demand for North American nickel amid efforts to secure domestic sources of battery metals.
“Nickel has always been viewed as a strategic metal,” Selby remarked. “Given the current geopolitical landscape and Chinese dominance over Indonesian resources, relying solely on Indonesia and China for nickel may not be desirable for many end-users and governments.”
