Nickel prices on the London Metal Exchange have reached their highest point since September 2014 off the back of battery demand predictions in 2021.

The battery metal reached $US18,612 ($24,057) per tonne this week, the highest price since it hit $US19,380 on  September 5 2014.

According to Roskill’s nickel outlook to 2030, nickel is predicted to recover through 2021 as COVID-19 vaccines roll out and stimulus packages materialise.

Roskill stated nickel’s positive outlook is also a result of growing demand for batteries, particularly for use in electronic vehicles (EV)

“Batteries will find a growing market share for nickel over the next decade, although this currently represents a small proportion of nickel consumption,” Roskill stated.

The price spike follows India’s Chief Minister of Karnataka, B.S. Yediyurappa’s announcement that the state will become home to a new Tesla manufacturing factory in India.

Tesla chief executive officer Elon Musk previously confirmed via Twitter in October 2020, that the EV company would reach Indian shores in 2021.