Published on 19 Aug 2022 on Insider Monkey via Yahoo Finance
10 Best Small-Cap Nickel Stocks to Buy Now
In this article, we discuss 10 best small-cap nickel stocks to buy now. If you want to read about some more small-cap nickel stocks to buy now, go directly to 5 Best Small-Cap Nickel Stocks to Buy Now.
Nickel has steadily climbed the mining ladder in the past few years, coming to dominate discussions around the growth of electric vehicles and the rise in production of stainless steel products. Nickel is an important raw material used in both products. In EVs, nickel is used to manufacture cathodes in lithium-ion batteries. Nickel sourced from sulfide and limonite deposits is ideal for this purpose. Nickel also readily combines with other metals and has corrosion-resistant properties at high temperatures, hence it is used in stainless steel products.
There has been a shortage in supply of the metal in the past few months due to a rise in post-pandemic demand coupled with supply chain problems. Despite these headwinds, the International Nickel Study Group estimates that nickel usage increased by more than 16% last year and caused a supply shortfall of 168,000 tons. Per the group, the usage for nickel in 2022 will increase by close to 9%, climbing over 3 million tons. Supply shortages will decrease as production from a new Indonesian plant is expected to result in surplus tons of nickel.