Automologist MAC explains why this could be inevitable.
Energy prices have been gaining new heights ever since OPEC+ decided to restrict supplies in a heavy-handed response to the COVID downturn. Now despite pleas from a number of countries, including Americaland and Englandland, OPEC (which controls about 38% of world supplies) has basically thumbed their noses at the rest of the world and refused to increase supply. Instead, they are enjoying sky-high prices and raking in the profit, perhaps with a large slice of schadenfreude.
We all know how Uncle Joe in the White House has added to our global misery, as I have written about before, and all of this doom and gloom has empowered the Tree-huggers in their hemp trousers, who are now harping even more than ever about the need to switch to alternative energy. Judging by the sale of EVs and Hybrids, particularly in Europe, it would seem like a lot of people agree with them. This largely means using lithium-ion batteries for our personal transportation needs. But once again, we may find ourselves under the Putin Hammer and here is why…
Although using a Li-ion battery seems like it is pretty green, the making of that battery is far from clean. These batteries rely on a blend of manganese, cobalt and most importantly, nickel; the latter is generally the largest component, sometimes representing 80% of the contents. Of course, sourcing of the nickel once again is at the mercy of the global supply chain which come with headaches that started due to an over-reaction to COVID and has been exacerbated by the Russian army’s summer excursion in the Ukraine.
Countries such as Indonesia and the Philippines can and will be able to boost their production, although I very much doubt that this will be in any way environmentally sensitive. But for now, we will have to rely on Russia where the world finds the bulk of its nickel supplies now. Worse still, you cannot open mines overnight; it takes a while to get production up and running and let us not forget that nickel is also used in stainless steel and other wind turbine componentry.
Recycling of old batteries will help plug the gap and there are some promising start-ups trying to get it going, but for now they are just start-ups and have not really proven their worth or even managed to plug anything. This year, nickel has increased 60% in price on the London Metal Exchange; a lot of this recent rise can once again be attributed to speculators.
So, it would seem that if we choose to drive gas-guzzlers, we need to be friends with Mr Putin and, if we choose to go green, we need to be friends with Mr Putin. It is fair to say that we are damned if we do and damned if we do not, and I have a sneaky suspicion that in the halls of the Kremlin, they are aware of this.
