The Next OPEC-Like Cartel Could Be In Battery Metals
November 3rd, 2022I wouldn’t hold my breath, but maybe sodium will work:
Via: OilPrice:
The world’s largest nickel miner, Indonesia, is considering the idea of forming a cartel to manage the supply of nickel and some other key battery metals, similar to what OPEC does for oil. As demand for battery metals such as nickel, lithium, copper, and cobalt is expected to soar in the coming decades to meet the surge in battery demand for electric vehicles and energy storage, the idea that some resource-rich countries would take advantage of their mineral deposits and look to control part of the future market doesn’t sound outrageous.
“I do see the merit of creating Opec to manage the governance of oil trade to ensure predictability for potential investors and consumers,” Indonesia’s Investment Minister Bahlil Lahadalia told the Financial Times in an interview published this week.
“Indonesia is studying the possibility to form a similar governance structure with regard to the minerals we have, including nickel, cobalt and manganese,” Lahadalia added.
Indonesia has not yet contacted other nickel-producing countries to discuss the idea of a cartel, the investment ministry told FT, adding it was still working on a governance structure of a future alliance that it could propose to other producers.
