Luxembourg’s Wave Nickel looking to build refinery in Texas
- August 22, 2023
- Posted by: Quatro Strategies
- Categories: Europe, EVs & Battery Technology, Mining & Metals, United States
Luxembourg-based company Wave Nickel is embarking on an ambitious plan to establish a $440 million refinery in Texas, aimed at producing nickel sulfate, a critical component in the manufacturing of electric vehicle (EV) batteries. The venture seeks to leverage US government incentives, including provisions from President Joe Biden’s Inflation Reduction Act, to facilitate the construction of the refinery.
This strategic move reflects the broader push to bolster domestic battery materials production within the US, given the burgeoning demand for EVs and the desire to enhance national security by securing a consistent supply of essential minerals. The refinery project aligns with the increasing awareness of the importance of securing critical minerals for various industries, particularly EV production.
The proposed facility, which is slated to take around four years to develop, will be supplied with raw materials from a Brazilian plant. This Brazilian facility employs advanced microwave technology to create mixed hydroxide precipitate, a precursor material utilized in the production of nickel sulfate. Wave Nickel anticipates generating 40,000 tons of precipitate by 2028, which would enable the production of approximately 20,000 tons of nickel.
Wave Nickel is part of the New Wave group, a holding company with a significant stake owned by the family of Erling Lorentzen, a prominent Norwegian entrepreneur known for his contributions to Brazil’s pulp industry. The group is also involved in utilizing microwave technology to extract minerals from alumina tailings and is in the process of constructing plants to process bauxite residue.
The final engineering studies for the Texas refinery are being carried out by Canadian engineering firm SNC-Lavalin Group. The refinery’s establishment marks a pivotal step in New Wave’s broader strategy, which includes the aspiration of launching an initial public offering on the Nasdaq by 2026.
This endeavor comes at a time when the nickel market has experienced challenges due to an oversupply of Indonesian production, causing nickel sulfate prices to temporarily dip below those of nickel metal. However, Wave Nickel’s CEO, Gustavo Emina, anticipates that a reduction in project development outside of key producing countries like China and Indonesia could lead to a surge in demand for nickel ore by the year 2028, potentially influencing the nickel market dynamics.
Interested in learning more?
Sign up for Top Insights Today
Top Insights Today delivers the latest insights straight to your inbox.
You will get daily industry insights on
Oil & Gas, Rare Earths & Commodities, Mining & Metals, EVs & Battery Technology, ESG & Renewable Energy, AI & Semiconductors, Aerospace & Defense, Sanctions & Regulation, Business & Politics.
Read more insights
Japan’s auto titans face long-term erosion despite U.S. tariff relief
Japanese automakers may have narrowly avoided the full brunt of punitive U.S. tariffs, but the partial reprieve has done little to reverse a much deeper and more complex erosion of their global dominance, driven by both rising Chinese competition and growing structural pressures at home.
On July 22, U.S. President Donald Trump announced that tariffs on Japanese vehicles imported into the United States would be reduced from 25% to 15%, a welcome development on paper, but not necessarily a game-changer. Analysts caution that the 15% rate is still substantially higher than what Japanese automakers had previously faced, and far above expectations.
Germany passed bill to make energy saving compulsory for all sectors
Germany has taken a significant step forward in its efforts to combat climate change and reduce dependency on fossil fuels by passing a comprehensive Energy Efficiency Act. The legislation, introduced by the Greens-led economy ministry, makes energy-saving measures compulsory across all sectors of the economy.
India’s nuclear opening rewires the global reactor map
India’s move to open its nuclear power sector to private operators is a genuine break with more than half a century of doctrine, and it goes far beyond a narrow regulatory tweak. It is an attempt to turn nuclear energy from a tightly controlled strategic enclave into a mainstream pillar of the country’s power system and climate strategy.
For decades, India’s nuclear story has been shaped by geopolitics and security rather than markets. The 1974 “peaceful nuclear explosion” led to technology and fuel embargoes that forced New Delhi to build an indigenous, state-dominated ecosystem under the Atomic Energy Act: the Department of Atomic Energy, NPCIL as the sole operator, and a cluster of state-owned suppliers and laboratories.