Dearth of Nickel Seen as Use in Vehicle Batteries to Double

The global nickel market will be in shortage for the third straight year as demand in batteries for electric vehicles is poised to double, according to Japan’s largest producer.

Output will fall short of consumption by 83,000 metric tons in 2018, with production at 2.19 million tons and usage at 2.27 million tons, said Masanori Ohyama, general manager for nickel sales at Sumitomo Metal Mining Co. As much as 100,000 tons could be used in batteries for electric vehicles, compared with 40,000 to 60,000 tons in 2017, he said in an interview March 8.

Prospects for an emerging shortage have ...