# Nickel-based batteries: Economics

How cheap lithium priced nickel cells out of grid storage

Source page: https://www.materialinsights.org/energy/e_nickel_batt/sg-econ/

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.^[2](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf)^[8](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf)^[10](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-lithium.pdf)
 Lithium carbonate price, real USD 63,700/t (2022) to USD 9,000/t (2025)^[10](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-lithium.pdf) Nickel price USD 25,815/t (2022) to USD 15,000/t (2025)^[2](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf) LFP 100 MW / 10 h installed, 2021 USD 356/kWh^[8](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf)

#### 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.^[7](https://www.lazard.com/media/kcfconhf/lazards-lcoeplus_vf.pdf)^[16](https://www.lazard.com/media/uounhon4/lazards-lcoeplus-june-2025.pdf)
 Lithium-ion LCOS, 100 MW / 4 h, 2026 USD 210-292/MWh (USD 115-254/MWh in 2025)^[7](https://www.lazard.com/media/kcfconhf/lazards-lcoeplus_vf.pdf)^[16](https://www.lazard.com/media/uounhon4/lazards-lcoeplus-june-2025.pdf)

#### 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](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-cadmium.pdf)

#### Sources

1. [Mineral Commodity Summaries 2026: Cadmium](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-cadmium.pdf) US Geological Survey, 2026
2. [Mineral Commodity Summaries 2026: Nickel](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-nickel.pdf) US Geological Survey, 2026
3. [Lazard's Levelized Cost of Energy+ (LCOE+), July 2026 (LCOS v11.0 key assumptions p. 38; LCOE v19.0 assumptions p. 28)](https://www.lazard.com/media/kcfconhf/lazards-lcoeplus_vf.pdf) Lazard, 2026
4. [2022 Grid Energy Storage Technology Cost and Performance Assessment (PNNL-33283), Executive Summary p. vii](https://www.energy.gov/sites/default/files/2022-09/2022%20Grid%20Energy%20Storage%20Technology%20Cost%20and%20Performance%20Assessment.pdf) Pacific Northwest National Laboratory for US Department of Energy, 2022
5. [Mineral Commodity Summaries 2026: Lithium](https://pubs.usgs.gov/periodicals/mcs2026/mcs2026-lithium.pdf) US Geological Survey, 2026
6. [Lazard's Levelized Cost of Energy+ (LCOE+), June 2025 (LCOS v10.0 Appendix B p. 43)](https://www.lazard.com/media/uounhon4/lazards-lcoeplus-june-2025.pdf) Lazard, 2025

## Other sections

- [Summary](https://www.materialinsights.org/energy/e_nickel_batt/index.md)
- [Overview](https://www.materialinsights.org/energy/e_nickel_batt/overview/index.md)
- [Correlation](https://www.materialinsights.org/energy/e_nickel_batt/correlation/index.md)
- [Science and technology](https://www.materialinsights.org/energy/e_nickel_batt/sg-sci/index.md)
- [Engineering and performance](https://www.materialinsights.org/energy/e_nickel_batt/sg-eng/index.md)
- [Impact and additionality](https://www.materialinsights.org/energy/e_nickel_batt/sg-impact/index.md)
- [What to track](https://www.materialinsights.org/energy/e_nickel_batt/tracking/index.md)
- [Relationships](https://www.materialinsights.org/energy/e_nickel_batt/links/index.md)