The mining industry watched with interest on 22 September as electric vehicle maker Tesla revealed a host of innovations at its highly anticipated ‘Battery Day’, giving clues to where future commodities demand could be.

One of the biggest takeaways from the event was Tesla’s announcement that it can make a $25,000 electric vehicle – around $10,000 less than its existing cheapest model – by making its own EV batteries without needing to use cobalt.

Tesla CEO Elon Musk has long complained his company’s vehicles are unaffordable for many, and said affordability of its vehicles is how Tesla can scale.

Cobalt is the most expensive material used in EV batteries, and up until now has been considered a key component in their manufacture.

The news could have big ramifications for FTSE 100 mining giant Glencore (GLEN), which has pushed heavily into mining cobalt ahead of the anticipated surge in demand for EVs.

But to compensate for the lack of cobalt, Musk said Tesla will need more nickel. Glencore has a big nickel operation which could help offset lower cobalt demand. The biggest winner looks set to be Brazilian mining giant Vale, the largest nickel producer in the world.

On the London market, BHP (BHP) and Anglo American (AAL) are also big nickel producers and could see an uptick in demand. While not yet in production, pure play nickel miner Horizonte Minerals (HZM:AIM) is another that might benefit in time.

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