Integration of Canadian nickel mines into the America battery belt

To support the integration of Canadian mines into the America battery belt, both Canada and the US are strengthening ties across the industry, for example:

• the Canadian government has started to restrict  foreign owned investments in the critical minerals sector, particularly affecting Chinese investments. The provinces are also looking into ways to shorten permitting times
• the US Defense Department awarded US$14.8 million to two Canadian companies to mine and process critical minerals in North America
  in 2022, the US announced US$250 million in Defense Production Act (DPA) funding for US and Canadian companies to mine and process critical minerals for electric vehicle and stationary storage batteries

The two largest nickel mines in Canada are operated by Glencore (Raglan and Sudbury Area mines), then third and fourth largest by Vale (Voisey’s Bay mine and Coleman mine).

But current nickel mining capacity in North America is not enough to meet the tripling of demand that is forecast.  New exploration projects are working to meet this new expected surge in demand.

Canada Nickel boasts the largest nickel deposit in North America and are positioning themselves for Canada Nickel a global nickel market they believe is “fundamentally short of nickel in medium and long-term – little to no supply growth outside Indonesia/China.”

As public concerns mount over the environmental impact of mining in Indonesia, and governments and automakers push for responsibly sourced nickel, Canada Nickel is positioning itself as a market leader in sustainable nickel after just secured a US$20million investment from Ontario’s First Nations (believed to be the first Indigenous funding into the Canadian critical-minerals industry).

Vale, the Brazilian mining giant, is a major player in the North American nickel market. With significant operations in Canada, including the Voisey’s Bay Mine in Newfoundland and Labrador and the Sudbury operations in Ontario, Vale is investing heavily in the region.

The company recently  completed a US$2.94 billion expansion project at Voisey’s Bay, transitioning from open-pit to underground mining and boosting annual nickel production to 45,000 tons.

Glencore is a key player in the North American nickel sector, with significant operations in Canada. The company owns the Raglan Mines in Quebec and the Sudbury Area Mine in Ontario, which are among the largest nickel producers in the country.

Glencore’s Raglan Mines produced an estimated 20,510 tonnes of nickel in 2023, while the Sudbury Area Mine contributed 18,590 tonnes.

Canada Nickel is emerging as a significant player in the North American nickel industry with its flagship Crawford project in Ontario. The project is the largest nickel reserve in North America and expects to become the largest nickel sulfide operation in the Western world when fully operational.

The company’s focus on producing “clean, green nickel” positions it well to meet the growing demand from the electric vehicle and stainless steel markets.

Conclusion

Securing supply chains are now a strategic imperative for North America’s national security — and this includes nickel — and time to develop new supply is running short. For investors, this is a compelling opportunity.