Nickel-based batteries: Economics

How cheap lithium priced nickel cells out of grid storage

What this tab covers Economics and financial structure: capital versus operating cost, levelised cost of storage, and how the asset earns money.

Nickel-based batteries no longer compete on cost per kWh with lithium-ion for grid storage; their economics rest on long life and low maintenance in harsh industrial settings.

Capex versus opex

Unfavourable

No current published capex figures for grid-scale nickel-based systems were found. Lithium-ion competition has intensified as battery-grade lithium carbonate fell from USD 63,700/t in 2022 to about USD 9,000/t in 2025 (USGS annual averages in real terms), while nickel fell from USD 25,815/t to about USD 15,000/t. For reference, PNNL estimated a 100 MW, 10-hour lithium iron phosphate system at USD 356/kWh in 2021. The case for NiCd rests on low maintenance and multi-decade life, which reduces replacement costs.²⁸¹⁰

Lithium carbonate price, real USD 63,700/t (2022) to USD 9,000/t (2025)¹⁰ Nickel price USD 25,815/t (2022) to USD 15,000/t (2025)² LFP 100 MW / 10 h installed, 2021 USD 356/kWh⁸

Levelised cost of storage

Unfavourable

No LCOS for nickel-based grid storage appears in Lazard, PNNL or IEA work reviewed, which itself shows the technology is not considered competitive for bulk storage. The benchmark is US standalone 4-hour lithium-ion at USD 210 to 292/MWh in Lazard's 2026 edition, up from USD 115 to 254/MWh in 2025 because US tariffs cut access to cheap Chinese cells.⁷¹⁶

Lithium-ion LCOS, 100 MW / 4 h, 2026 USD 210-292/MWh (USD 115-254/MWh in 2025)⁷¹⁶

Revenue stack and market participation

Unfavourable

Nickel batteries earn their keep as backup power: substations, telecom, rail, aviation and oil and gas, where reliability is paid for rather than energy traded. They are poorly suited to daily arbitrage because of lower efficiency. USGS notes that lithium-ion can substitute for NiCd in many uses.¹

Sources

Mineral Commodity Summaries 2026: Cadmium US Geological Survey, 2026
Mineral Commodity Summaries 2026: Nickel US Geological Survey, 2026
Lazard's Levelized Cost of Energy+ (LCOE+), July 2026 (LCOS v11.0 key assumptions p. 38; LCOE v19.0 assumptions p. 28) Lazard, 2026
2022 Grid Energy Storage Technology Cost and Performance Assessment (PNNL-33283), Executive Summary p. vii Pacific Northwest National Laboratory for US Department of Energy, 2022
Mineral Commodity Summaries 2026: Lithium US Geological Survey, 2026
Lazard's Levelized Cost of Energy+ (LCOE+), June 2025 (LCOS v10.0 Appendix B p. 43) Lazard, 2025