Global cathode and precursor short-term outlook February 2024

Nickel sulphate leads pricing with significant improvement in February. The result is that cathode and precursor prices have gained for the first time since Q3 last year. January data for the automotive sector show that sales levelled, with a small decline in plug-in EVs. Tesla launched new incentives in China, including low financing rates and insurance subsidies, with other significant OEMs quickly following suit, but consumer sentiment remains depressed. Automotive cathode consumption was 85 kt for January, a 33% fall from December and a 47% increase from the previous year.