A visitor looks at battery products during InterBattery exhibition held in COEX in southern Seoul on June 9, 2021. (Yonhap)
SEOUL, March 10 (Korea Bizwire) — South Korea’s battery makers are on alert as the price of nickel and other materials is surging.
The Korea Mineral Resource Information Service reported that the global price of nickel had jumped to US$42,995 per ton on Monday, an annual increase of 132.5 percent, noting that 10 percent of the worldwide production of nickel comes from Russia.
The price of cobalt has also jumped, rising to $79,000 per ton for an increase of 54 percent on year.
The market prices of nickel, cobalt and manganese, the three most critical materials for South Korean battery manufacturers including LG Energy Solution Ltd., have been spiking, leading to higher production costs.
South Korean companies have been importing these materials from China, Australia and South Americaan nations, staying away from the direct impact of Russia’s invasion of Ukraine.
Nevertheless, they have been on a constant alert to monitor the pricing situation.
Some industry sources claim that South Korean battery makers may introduce lithium iron phosphate (LFP) batteries to lower production costs.
“The cost of critical materials required in EV batteries will continue to rise,” Hanwha Investment and Securities Co. said.
“An increasing number of carmakers and battery manufacturers are likely to acquire shares of mining and raw material processing firms to secure enough supply for themselves.”
M. H. Lee (mhlee@koreabizwire.com)
