The commodities that go into batteries are in huge demand. We’re all trying to find and build out renewables and electric vehicles (EVs) across the globe, all at the same time. The problem with nickel is that there are few areas that you can get it.

One of them is Indonesia and they use High Pressure Acid Leaching (HPAL), which takes very low-grade nickel and makes it into class one - which is what you need for battery production.

HPAL is very carbon intensive. There are a lot of environmental concerns with Indonesia, given the impact on coral reef. We have to ask; Are our EV and green companies willing to see the carbon intensity of their product increase dramatically?

Paul Flood, head of mixed assets, Newton Investment Management

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