Vietnam's automobile manufacturers to develop solid-state batteries for electric cars
Making solid-state batteries is a prerequisite for the development of the electric vehicle (EV) market,
With forecasts of increased use of electric vehicles, metals for producing electric batteries are increasingly interested.
In recent years, Nickel has been considered a mineral "more precious than gold" and is one of many sought-after resources worldwide, especially when it is widely used in future technology industries such as electric vehicle batteries.
About 70% of the world's Nickel is used to produce stainless steel, 17% is used to make "superalloys", and 7% is used in the plating industry; the remaining is used in other fields, such as rechargeable batteries, catalysts and other chemicals.
In 2021, the United States Geological Survey (USGS) added Nickel to its proposed list of "50 Critical Minerals," which are determined based on the criteria of being essential to the economy or countries' security and have supply chains vulnerable to disruption.
In Vietnam, according to research published by the Institute of Science and Technology of Mining and Metallurgy (Ministry of Industry and Trade), total nickel reserves and resources are estimated at 3.6 million tons of metallic Nickel with 6 nickel mines, concentrated mainly in the provinces of Thanh Hoa (more than 3 million tons), Son La (420,523 tons), Cao Bang (133,677 tons...). Nickel ores in the Son La and Cao Bang areas are mainly disseminated nickel-copper ores.
Among the businesses listed on the floor, Section I Construction Joint Stock Company (PC1) indirectly owns a Nickel-popper mine through its subsidiary. In 2021, Section I Construction Joint Stock Company (PC1) PC1) acquired 57.27% shares of Tan Phat Minerals Joint Stock Company - owner of Nickel - Copper mines in Quang Trung commune and Ha Tri commune, Cao Bang province.
On July 3, 2021, Tan Phat Minerals Joint Stock Company held a groundbreaking ceremony for the project "Open-cast mining of Nickel - Copper minerals" in Quang Trung & Ha Tri communes, Hoa An district, province Cao Bang". Total project investment is 1,502 billion VND; design capacity is 600,000 tons/year.
In the third quarter, the Tan Phat Nickel-Copper project began to record a contribution with net revenue of VND 598 billion, the segment that brought in the largest revenue in the quarter when revenue from construction activities dropped sharply from 2,349 billion VND down to 477 billion VND.
According to an analysis report by SSI Research, in terms of mineral exploitation, PC1 will expand exports by adding at least 10,000 tons to Trafigura (a commodity trading company headquartered in Singapore) and can record 330 billion VND in revenue in Q4/2023.
By 2024, due to concerns about slowing economic growth that could affect mineral demand. SSI Research forecasts revenue will increase 18%, mainly thanks to output growth. However, the positive long-term outlook for nickel demand is notable as Nickel is mainly used in producing stainless steel alloys and batteries.
Not only PC1 but also Blackstone Minerals, an Australian exploration and mining company, invests tens of millions of dollars in a nickel mining project in Son La province, Vietnam. 2019 BlackStoneMinerals Company acquired 90 % of Ban Phuc Nickel Mine Company Limited, Ban Phuc commune, Bac Yen district, Son La province, located 160 km from Hanoi.
At the end of last year, VinES Energy Solutions Joint Stock Company (member of Vingroup Group) and Cavico Lao Mining Company Limited (member of Cavico Vietnam) signed a memorandum of cooperation on supplying raw nickel materials. According to the memorandum of cooperation, Cavico Lao Mining will prioritize providing all products that have been and are being sold for VinES to purchase depending on needs at each time. Cavico Lao Mining ensures long-term supply and meets the Nickel demand for VinES for at least 5 years.
In March last year, Nickel created a global craze that forced one of the world's leading commodity exchanges to change its rules. Specifically, at that time, the price of Nickel increased by 250% in just 2 days to 101,365 USD/ton when a "short squeeze" caused a unit of a major Chinese bank to miss a margin call payment deadline. The LME exchange was forced to stop trading because a large-scale "forced buying" occurred.
After cooling down, the current nickel price is about 16,600 USD/ton, according to Trading Economics data.
