Anthony Milewski: EV Adoption will Create Huge Pressure on Nickel Market
Anthony discusses the shift in battery chemistry and how companies have gradually reduced the amount of cobalt and manganese in their batteries. This chemistry requires time, capital, and safety reviews. The higher the ratio of nickel, the higher the capacity but also an increased possibility of thermal run-away. It will take some time to get to the higher nickel levels. Tesla is already approaching the highest levels of nickel in their batteries due in part to their advanced computerized charging systems that monitor and keep their batteries cool.
LME stockpiles of nickel have been in decline since late 2016 and supply remains stagnant but stable currently. If there isn’t a significant investment in nickel, there will be significant issues in meeting demand, but that will require much higher prices. When sentiment shifts low stockpiles could heighten a move upwards.
China and their steel demand drove the nickel bull market of 2006 to 2007. Their economic boom needed a considerable amount of nickel and other metals. Demand today from electric vehicles relies on a completely different part of the nickel market as there are two classes of the mineral. There will be tremendous pressure placed on class one nickel soon as more EV’s get adopted.
Anthony is working on a new company, Nickel 28, and they have royalty arrangements with two nickel companies. He discusses their cornerstone asset, which is a producing mine with good cash flow. When they launch, they will be the largest pure nickel play on the TSX.
Time Stamp References:
0:30 – Nickel market where is it headed?
2:00 – Tesla batteries use a lot of nickel.
3:00 – Nickel stockpile levels today.
4:45 – Drivers of the last nickel bull market.
9:00 – Anthony’s favorite books related to resources.
10:50 – Nickel 28 overview.
Talking Points From This Week’s Episode
• Nickel ratios in batteries are slowly increasing.
• Tesla currently has some of the most advanced batteries.
• Anthony lists some of his favorite books on resources and investments.
• Nickel 28 will be the largest pure nickel play on the TSX.
Mr. Milewski is the Chairman of Cobalt 27. He has spent his career in various aspects of the mining industry, including as a company director, advisor, founder, and investor. In particular, he has been active in the battery metals commodities, including investing in nickel, lithium, and cobalt and actively trading physical cobalt. In 2016, one of the industry’s leading publications, “The Mining Journal,” named him as a Future Mining Leader.
Anthony has managed numerous mining investments at various stages of development, including exploration, development, production and turnaround situations, and across a broad range of commodities. He has served as a director of both public and private companies.
He previously worked at Renaissance Capital and Skadden, Arps, Slate, Meagher & Flom LLP in Moscow, where he focused on advisory and transactional work in metals & mining and oil & gas sectors. He has lived and worked in Africa and Russia, including a year as a Fulbright scholar, and has spent considerable time in Central Asia.
Mr. Milewski holds a B.A. in Russian history from Brigham Young University, an M.A. in Russian and Central Asian Studies from the University of Washington, and a J.D. from the University of Washington. He holds an LLM from the Russian Academy of Sciences.