Battery Metals Expert Matt Fernley explains the three reasons for nickel’s perfect storm. Matt also shares insights into the oil market and critical materials markets amidst the Middle East conflict. Other metals market dynamics analyzed are manganese, graphite, aluminum, cobalt and rare earths. 00:00 Intro 00:40 Middle East Fallout 04:17 Inflation and Demand 07:38 Nickel Market Reset 10:26 Manganese Cathodes 12:59 Oil Majors in Lithium 18:45 Graphite Reality Check 26:40 Price Floors and Policy 29:25 Rare Earths and M&amp;A 34:42 Picking Metals Ahead 38:02 About RK Equity RK Equity: https://rkequity.com/ Sign up for our free newsletter and receive interview transcripts, stock profiles and investment ideas: http://eepurl.com/cHxJ39 Mining Stock Education (MSE) offers informational content based on available data but it does not constitute investment, tax, or legal advice. It may not be appropriate for all situations or objectives. Readers and listeners should seek professional advice, make independent investigations and assessments before investing. MSE does not guarantee the accuracy or completeness of its content and should not be solely relied upon for investment decisions. MSE and its owner may hold financial interests in the companies discussed and can trade such securities without notice. MSE is biased towards its advertising sponsors which make this platform possible. MSE is not liable for representations, warranties, or omissions in its content. By accessing MSE content, users agree that MSE and its affiliates bear no liability related to the information provided or the investment decisions you make. Full disclaimer: https://www.miningstockeducation.com/disclaimer/

Nickel’s Perfect Storm, Mid East Supply Shocks & Battery Metals Outlook with Analyst Matt Fernley

Mining Stock Education

# Full Transcript

**Podcast:** Mining Stock Education

## Participants

- **Brian Lenny** (None)
- **Matt Fernley** (Battery Materials Review)

## Transcript

You are listening to Mining Stock Education. In my view, a lot of the structural drivers for an increase in nickel were already in place last year. It's just they hadn't started to come through. So I think in nickel we kind of have had the perfect storm this year and it comes down to three points. Welcome to Mining Stock Education. My name is Brian Lenny. Today with me I have Matt Fernley of Battery Materials Review and a partner at RK Equity.

In our conversation today you are going to hear Matt's views on everything battery related. Lithium, Graphite, Rare Earths and Nickel. Matt, thank you for coming back on the show. And why don't we get started with the conflict in the Middle East. Have things played out in the Middle East in terms of its effect on the battery market, EVs, energy storage as you would have guessed? Or is that impact still to come?

I think to some extent the impact is still to come. I mean, you know, some areas have happened as I thought they were going to happen, but some of them haven't. So, you know, if I, for instance, look at sulfur and the impact on sort of sulfuric acid prices, that's kind of happened the way I expected that to happen.

And, you know, we started to see pressure on nickel production, on cobalt production from HPAL in Indonesia, you know, in production of some other metals because of the shortage of sulfuric acid and sulfur and everything. So that's kind of happened as I expected it to happen. I think one of the things that hasn't happened the way I expected it to happen was I expected oil prices to be substantially higher than they are now. And I obviously expected that to have quite a substantial impact on EV sales.

And to some extent, it has had an impact on EV sales in some markets, but it hasn't had such a big impact on sales in the big markets. And I guess, you know, you know, it's slightly outside my sphere to be talking about, you know, oil prices being kept artificially low. But I do believe that oil prices are being kept artificially low by governments.

And it's actually brewing up trouble for later, because basically what as oil prices go up, you get demand destruction. But if oil prices aren't let to rise, then you don't get demand destruction, which means that we're chewing through our inventories much faster than we would be if oil prices rose.

So, you know, we stand with the possibility of four to six weeks from now getting into a real problem globally with inventories, which then would lead to oil prices spiking out of the control of the sort of dampening efforts by various governments. You know, any strength in oil prices is likely to have a big impact on EV sales, I think. And, you know, that obviously is going to be positive.

And then the other thing is ESS, which is going, you know, really ballistic this year. Obviously, th...

Nickel’s Perfect Storm, Mid East Supply Shocks & Battery Metals Outlook with Analyst Matt Fernley

Transcript

Built for investment professionals

Every day you wait, your competitors are finding
edge in conversations you're not hearing.

Nickel’s Perfect Storm, Mid East Supply Shocks & Battery Metals Outlook with Analyst Matt Fernley

Transcript

Built for investment professionals

Every day you wait, your competitors are findingedge in conversations you're not hearing.

Every day you wait, your competitors are finding
edge in conversations you're not hearing.