Nickel prices surged for the last few days, rising over 230% lately. Several factors contributed to the surge, the latest being a short squeeze by one of the world’s biggest stainless-steel manufacturers, Tsingshan Holding Group, on the London Metals Exchange (LME).
The London Metals Exchange resorted to a not-so-common move and stopped nickel trading for an indefinite period of time due to this uncontrolled rally. Traders are concerned that this may lead to even higher nickel prices in the near future, especially on other global exchanges, as consumers were unable to get inventories from the exchange of last resort either.
This has led to significant concerns in the electric vehicle (EV) industry as nickel is a key component in EV batteries. Concerns about rising EV prices has led to manufacturers looking at lithium as a potential alternative.
Cadence Minerals plc (LON:KDNC) provides mining services. The Company focuses on finding lithium and other technology minerals in new places, as well as offers extracting services.