VIDEO - Nickel and Cobalt are Going in Different Directions

At this year’s Lithium Supply & Markets Conference in Chile, the Investing News Network caught up with Ken Hoffman, basic materials expert at McKinsey, to talk about the future for lithium-ion batteries and raw materials such as cobalt and nickel.

“One of the trends we’ve seen in the past year has been the collapse of lithium and cobalt prices,” he said. “However, we’ve seen phenomenal demand for the product.”

By 2030, McKinsey believes that between 18 and 27 percent of the vehicles sold globally will be electric.

“However, (in our forecasts) we continue to change the mix with much more fully electric vehicles (EVs) and less towards the plug-in hybrids,” added Hoffman, explaining that EVs are improving their range so there is less need for plug-in hybrids.

The expert also shared his thoughts on the adoption of nickel-cobalt-manganese 811 cathodes, and what the main challenges for the nickel space are in terms of increasing supply.

“Major metal producers don’t see any incentive price to look for new nickel mines,” he explained.

Speaking about upcoming battery technologies that could disrupt the sector, Hoffman said the discussion will continue to be all about solid-state batteries.

“Your solid-state battery doesn’t have a flammable electrolyte … It doesn’t have a graphite anode anymore; it has a lithium metal anode and it is more efficient,” he explained.

He also shared what factors every battery metals market participant should be watching out for in the rest of 2019, and how investors can get through the noise to better understand the sector.

Watch the video above for more insights from Hoffman. You can also click here to watch our full Lithium Supply & Markets Conference playlist on YouTube.

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Securities Disclosure: I, Priscila Barrera, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: The Investing News Network does not guarantee the accuracy or thoroughness of the information reported in the interviews it conducts. The opinions expressed in these interviews do not reflect the opinions of the Investing News Network and do not constitute investment advice. All readers are encouraged to perform their own due diligence.