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Nickel, a critical component in the rapidly expanding electric vehicle (EV) and renewable energy sectors and plays a pivotal role in the development of high-performance batteries. As the demand for nickel continues to surge, understanding the differences between two primary sources of nickel extraction (laterites and sulphides) is crucial when deciding where to invest in the mining space. This article will look at the distinctions between nickel laterites and nickel sulphides and delves into the question of which type of nickle is better suited for battery applications.
Nickel laterites are an important source of nickel for various industries, including the production of stainless steel and, more recently, the manufacturing of batteries for electric vehicles and renewable energy storage systems. Nickel laterites are geological formations that develop over extended periods through the weathering of ultramafic rocks, which are rich in minerals like olivine and pyroxene. This weathering process occurs under tropical climates like Indonesia and the Philippines, where high temperatures and significant rainfall contribute to the breakdown of these rocks. The rainwater is enriched with oxygen and carbon dioxide and interacts with the minerals in the rocks, leading to chemical reactions that leach the soluble elements like magnesium from the matrix leaving behind the nickel, iron, silicon and aluminum to be concentrated. Over time, distinct layer or profiles form within the laterite deposit. As an example, The uppermost part is called the limonite zone. This zone contains predominantly nickel in the form of nickel oxide and hydroxide accumulates. .
Laterites are generally found close to the Earth’s surface, often within the top few tens of meter,s but that’s not to say laterites are not found deeper aswell. However, generally speaking, this proximity to the surface makes them more accessible for mining operations compared to generally deeper-seated sulphide deposits. As noted above Laterites contain substantial amounts of other elements such as Iron, silicon and aluminum. The presence of these impurities creates challenges for the separation of these elements and requires high pressure acid leaching. This process can be costly and requires sophisticated and energy-intensive processes.
While these deposits are valuable sources of nickel, their composition presents challenges in the extraction and processing phases for use in battery applications. Advances in technology and ongoing research aim to optimize the recovery of nickel from laterites to meet the growing demand in the battery industry but the infrastructure is not quite there
Nickel sulphide deposits originate from magmas enriched in nickel, which intrude into the Earth’s crust. During the cooling and solidification of molten rocks over time the minerals begin to crystalize in a process known as crystal fractional crystallization. Nickel, being a siderophile element (affinity for iron), tends to concentrate in the residual liquid phase, leading to the formation of nickel-rich sulphide minerals. As the cooling and crystalization occurs, the sulphide minerals segregate from the host rock and accumulate in specific zones which can be found at surface and traced at depth up to several kilometers of the earths surface. Mining at greater depths can be challenging but the high tonnage open pit model for mining these deposits happens well in advance of any underground operations.
One of the main factors that differentiate Laterites and suphides is grade. While on surface it would appear that laterites have higher grades, but due to the metallurgical restraints, sulphides actually contain more nickel as it is in a more concentrated state because of fractional crystallization. Also, the reduced impurity levels simplifies the metallurgical processing steps required to extract nickel from the ore. Traditional mining methods and flotation processes are commonly employed for extracting nickel from sulphide ores. However, recent work from companies like Canada Nickel and FPX have highlighted advancements in the metallurgical processing showing promising recovery rates for lower grade sulphides.
Another added benefit of sulphides is that mine tailings are generally non acid generating and much cleaner in context to laterites. Having non acid generatied tailings saves alot of money on the disposal of waste and neutralization of the acid in the tailings. Simultaneously, while being cleaner and more cost effective, Nickel sulphide deposit generally contain brucite, a mineral that naturally sequesters carbon. New studies in this field are paving the way for netzero carbon mining operations as companies have figured out how to use the tailings to permanently sequester the carbon.
With these more recent advancements in mining technology, companies are starting to unlock the potential of lower grade nickel sulphides, contributing to their significance in meeting the demand for nickel in various industries, particularly in the production of batteries for electric vehicles and renewable energy storage systems.
The selection between nickel laterites and nickel sulphides for battery applications involves a careful consideration of multiple factors, each of which plays a crucial role in determining the most suitable source of nickel. Let’s take a look at some of the determining factors;
Cost Considerations:
Environmental Impact:
Battery Technology Requirements:
Global Availability:
Technological Advances:
Recently listed as a critical mineral in North America, both the Canadian and American governments are keen on developing projects to supply the growing market. Historically Nickel supply has proven to be volatile due to factors such as geopolitical tensions, mining disruptions, and changes in government policies and there have been growing concerns about the sustainability of nickel production, especially regarding environmental impacts and ethical mining practices. Indonesia, in particular, has been increasing its nickel production capacity, driven by the growth of nickel pig iron (NPI) production and investments in battery-grade nickel production, but the carbon footprint is incredibly high as the country relies heavily on coal to generate power. Due to the volatility of the nickel supply market itself, nickel prices can experience significant fluctuations in the speculative trading in commodity markets.
In the evolving landscape of battery technology, the choice between nickel laterites and nickel sulphides is not a one-size-fits-all scenario. Both sources have their advantages and challenges, and the decision ultimately depends on a combination of economic, environmental, and technological factors. As the demand for nickel continues to rise, ongoing research and innovation will likely play a pivotal role in optimizing the extraction and processing of both nickel laterites and sulphides to meet the evolving needs of the battery industry. However, if we were to pick one over the other, sulphides carry a distinct advantage in various categories and are ultimately the better choice to supply the rapidly expanding EV market.
Authored by: Mike Coyle
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© Copyright 2022 insidexploration.com | Multimedia and analytical due diligence database for the investing community | Contact us: insidexploration@gmail.com