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August 13, 2021 – Demand for electromobility in Europe increased by over 147% compared with the first half of 2020. This is driving the investment efforts of European automakers into car batteries – also and especially in their efforts to become independent of Asian battery manufacturers. The nickel futures have currently compensated their losses from the beginning of the week significantly. And smart purchasing planning helps to save costs.

Stainless Espresso: Growth market for car batteries
Stainless Espresso: Growth market for car batteries

Growth market for car batteries 

In the first half of 2021, around 336,000 purely battery-powered electric vehicles (BEVs) were registered in Europe’s core automotive markets – which include Germany, the United Kingdom and France – an increase of 147% compared with the first half of 2020. 

EU to reduce combustion engine car registrations to 0 by 2035 

By 2035, new registrations of internal combustion cars across the EU are to be successively reduced to zero – in favor of e-cars. This makes the production of high-voltage batteries an interesting growth market.  

Dependence on Asian batteries to be reduced 

German automakers have reacted and are pushing ahead with strategies to develop and build their own production facilities in Europe and cooperate with European battery manufacturers. This is intended to reduce dependence on Asian producers and improve the CO2 balance of the batteries through production with renewable energies. 

Plant manufacturers benefit from new production sites 

The equipment manufacturers at the new European production sites are likely to benefit from structural sales growth. However, demand for battery raw materials such as cobalt, copper, nickel and lithium should also remain high. 

Source: deutsche-bank.de 

Chinese lithium prices increased significantly  

Chinese lithium prices have risen significantly in recent days, gaining more than 5.5% per ton through Aug. 13.  

Nickel futures have recovered losses from the start of the week  

SHFE nickel futures have recouped their losses from the start of the week (August 9, 2021), and the most heavily traded contract is currently up as much as 1.5%. Supply shortages of Chinese nickel had the nickel price from the middle of the week starkt befeuert. On the LME, the nickel has currently even increased by more than 5.7% compared to its start of the week. 

Source: lme.com, shfe.com.cn 

Demand for stainless steel high well into 2022  

According to current data, demand for stainless steel is expected to remain high well into 2022. This is also shown by the first figures and background information from the quarterly reports of stainless steel producers. Together with tight availability and logistical challenges, stainless steel consumers have to actively take care of their inventories or buy short-term demand expensively in the spot market, which puts pressure on the margins of the end products.  

 Smart demand planning strategy 

A smart demand planning strategy thus helps to cushion potential price spikes and keep your own inventories at a healthy level. Do you have questions about how to achieve this goal? Just get in touch with us: +49 7642 9282851 or +1 302 803 5865.

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