Top 5 Nickel Stocks to Invest in the Electric Vehicle Boom
Tesla (Nasdaq: TSLA) and other electric vehicle (EV) manufactures are pushing nickel demand higher. Their batteries require a lot of the commodity. That’s why I’ve researched some of the top nickel stocks to invest in today. The companies below give some unique investing opportunities.
Elon Musk has said that Tesla is willing to give a giant long-term contract to a nickel mining company. That’s if it’s able to produce it efficiently and in an environmentally sensitive way. On top of Tesla’s request, other EV producers will need similar resources. And that bodes well for the nickel mining stocks.
On top of that, issues with global nickel supply have gotten worse. Russia has one of the highest nickel reserves coming in around 7 million metric tons. It’s also one of the world’s leading nickel producers. But with the ongoing conflicts and trade limitations, this limits supply to the rest of the world. As a result, we’re seeing many metal prices increase…
Nickel is just one of a few resources seeing a spike in demand in the wave of the EV trend. So click here for a list of the top graphite stocks as well. And to get a better picture of what’s happening, I’ll highlight some of the key trends below. But first, let’s take a look at the top nickel mining stocks…
Top Nickel Stocks in the Mining Industry
- BHP Group (NYSE: BHP)
- Vale S.A. (NYSE: VALE)
- FPX Nickel (OTC: FPOCF)
- Small Nickel Stock
- Small Nickel Stock
The first two on this list are huge, diversified mining companies. They have some exposure to nickel, but also have stable cash flows from other segments. Their size and economies of scale help provide a little more safety for investors. But the last two are smaller nickel mining stocks with great growth potential…
Nickel Mining Stock Highlights
BHP Group is already selling more than 75% of its nickel production to the EV battery industry. The company also predicts that by 2050 nearly 50% of light vehicles around the world could be electric.
BHP’s major nickel mining operation is Nickel West in Australia. It’s a fully integrated mine-to-market business with more than 3,500 employees and contractors. And BHP is continuing to expand this part of its business, which should make this a top nickel stock going forward.
Vale S.A. is the world’s largest producer of nickel. The company has nickel operations in Brazil, Canada, Indonesia and New Caledonia. It also has fully owned and joint venture refineries in China, South Korea, Japan, the U.K. and Taiwan.
Vale’s scale makes it one of the best nickel mining stocks to consider buying. And as mentioned above, it’s a huge mining company. It also produces iron, copper, coal and manganese, just to name a few. Vale provides cash flows from many different mining operations which makes this one of the top nickel stocks with excellent diversification.
FPX Nickel is a Canadian nickel mining company with its flagship project in British Columbia. Its Decker Nickel District has an estimate of more than 9.2 metric tons of recoverable nickel by 2050. It also has an inferred amount close to 1.5 million pounds.
FPX is still considered a junior mining company. But its leadership team is pushing many projects forward to grow the business. Collectively, the management team has worked in more than 35 countries and has a wide range of experience in the mining industry. This could make it one of the best nickel mining stocks to watch in the future.
Talon Metals has a joint venture with Rio Tinto and is focused on supplying the expanding EV market. It also produces copper and cobalt, two other import metals for the EV industry.
Talon’s main project is located in Minnesota. It’s the high-grade Tamarack Nickel-Copper-Cobalt Project, and it’s separated into northern and southern projects. The company focuses on lowering costs while producing nickel in an environmentally friendly and socially responsible way, making it a one of the best nickel stocks for the environmentally conscious investor.
Canada Nickel Company is another junior miner that can benefit from the EV boom. It owns 100% of the Crawford Nickel-Cobalt project in Ontario, Canada. It’s a recently discovered mining asset that was owned by a forest company up until 2011.
Based on the company’s recent reports, the Crawford resource ranks as one of the 10 largest nickel sulfide resources globally. Its measured estimate of nickel comes in at close to 1.2 kilotons. So it’s a well-positioned nickel stock as the battery storage market continues to grow…
EV Boom Drives Nickel Prices Higher
As EV demand continues to grow so will nickel demand. The batteries in these vehicles require a lot of the metal. It helps deliver higher energy density and greater storage capacity at a lower cost.
With future battery innovations on the horizon, nickel is also set for an increasing role in energy storage systems. This is likely why Tesla and others are looking for long-term supply contracts.
The EV market is still in its early stages and the potential is huge. The top nickel mining stocks above could provide solid returns in the coming years. Also, as mentioned before, some other metals are vital. Here’s a list of the top lithium stocks to consider buying as well.
In 2021, roughly 9% of new car sales around the world were passenger plug-in vehicles. And that’s up from about 4% in 2020. The trend is picking up steam, and EVs make up only a small portion of cars on the road today.
Overall, more auto manufactures and consumers are shifting toward the EV future. It’s a powerful trend and bodes well for various metal and nickel stocks that will play a huge role in EV battery production. There are many investment opportunities to consider today…
About Russ Amy
Hey there! I’m Russ Amy, here at IU I dive into all things money, tech, and occasionally, music, or other interests and how they relate to investments. Way back in 2008, I started exploring the world of investing when the financial scene was pretty rocky. It was a tough time to start, but it taught me loads about how to be smart with money and investments.
I’m into stocks, options, and the exciting world of cryptocurrencies. Plus, I can’t get enough of the latest tech gadgets and trends. I believe that staying updated with technology is key for anyone interested in making wise investment choices today.
Technology is changing our world by the minute, from blockchain revolutionizing how money moves around to artificial intelligence reshaping jobs. I think it’s crucial to keep up with these changes, or risk being left behind.