Luxembourg’s Wave Nickel looking to build refinery in Texas

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.

Elevate your business with QU4TRO PRO!

Gain access to comprehensive analysis, in-depth reports and market trends.

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.

By clicking subscribe you agree to our privacy and cookie policy and terms and conditions of use.

Read more insights

Global nickel industry faces crisis as Indonesia’s supply boom hits markets

Just 18 months ago, BHP Group, the world’s largest mining company, was making significant moves in the nickel market, signing a deal with Tesla to supply the crucial material for electric vehicles. Nickel was considered a key growth pillar for BHP, as it sought to offset its exit from fossil fuels and…

Germany commits €700 million for Northvolt battery factory despite budget crisis

Germany has affirmed its commitment to providing €700 million ($762 million) to ensure the realization of a Northvolt AB battery factory, marking a significant move amid financial challenges and a government spending freeze. This commitment, which involves an exemption from the…

Diverging central bank policies and China’s slowdown raise global economic fears

Growing concerns about lackluster economic growth and emerging risks to the job market overshadowed the recent gathering of global policymakers at the U.S. Federal Reserve’s annual Jackson Hole conference. This event highlighted a significant shift in monetary policy, as both U.S. and European central banks…

Stay informed

error: Content is protected !!