📋 About: AOU is a nickel sulphide focused base-metal resource company building value through targeted high-impact exploration in Western Australia. AOU has three nickel projects in WA.
🌏 Macro Theme: Tesla chief executive Elon Musk commented that nickel was the company’s “biggest concern” in scaling lithium-ion cell production. Nickel is one of the priority metals in the manufacture of Tesla’s batteries and the car giant is looking to increase its nickel supply. There may also be some direct investment from other auto manufacturers who have expressed a desire to move to a vertically integrated model whereby they have better control over the supply chain in relation to commodity inputs. From a longer term perspective, analysts are generally expecting tailwinds for the nickel price due to increasing demand from the electric vehicle industry. The World Bank predicts that Nickel demand is guaranteed to increase by some of the most dramatic figures by tonnes.