Electric Vehicle Market Gives Yukon Project New Focus
(Kitco News)- Expectedexponential demand for electric vehicles (EV) is breathing new life into awell-established polymetallic project in Canada’s Yukon Territory.
Nickel CreekPlatinum (TSX: NCP), formerly known as Wellgreen Platinum is well positioned to takeadvantage of growing need for battery-grade nickel sulfide, according to thecompany executives.
It has beennearly two years since new management brought a new mindset to the Yukon-basedproject. Previously, the company when it was Wellgreen Platinum, was focused ondeveloping a significant platinum group metals project.
In aninterview with Kitco News, during a recent site tour, Heather White, chiefoperating officer of Nickel Creek, said company’s transition was relativelysmooth because the property’s mineralization is mostly nickel. Because of thecurrent market dynamics, she added that it makes sense to emphasize thepotential in base metals.
The project’smeasured and indicated resource shows 2.1 billion pounds of nickel,representing about 55% of the property’s mineralization, potentially making itone of the largest nickel-sulfide producers in North America. In preciousmetals, the property has 6 million ounces of platinum and palladium; in othermetals, the property contains 1.1 billion pounds of copper and 121 millionpounds of cobalt.
“This is aunique world-class project,” said Graeme Jennings, vice president of corporatedevelopment. “It’s a nice mix of metals that is perfectly timed for the market.The project will be coming online when people will be craving nickel.”
According tomany analysts, the most significant driver for nickel is expected to come fromthe electric vehicle sector as the metal is a critical component in lithiumbatteries.
A report,published Monday, from commodity analysts at Wood Mackenzie support’s NickelCreek’s outlook on the base metal. The research firm said EV batteries couldconsume 1.26 million tonnes of nickel by 2040.
“Findingenough nickel raw materials for battery-sulfate producers is likely to be aconsiderable challenge post-2025,” the analysts said in its report.
According toWhite, what makes Nickel Creek unique is that its mineralization makes it agood fit for the EV market as the company will produce a high-quality nickelsulfide that is needed by battery manufactures.
She addedthat growing concerns over future supply has already prompted some companies totalk with Nickel Creek for direct source material.
“Thesecompanies want a guaranteed feed. In the current market environment it makessense for companies to de-risk their supply chain,” she said.
Nickel is one of the top performing commodities so far thisyear as prices are trading just down from multi-year highs. Spot Nickel priceslast traded at, $6.401 per pound, up almost 13% since the start of the year.
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