Ardea revealed in May that the Japanese consortium had committed to backing the development of the project. Details of the deal show that Sumitomo and Mitsubishi have agreed to jointly fund the $98.5 million DFS for the Goongarrie Hub, which is part of Ardea’s wider Kalgoorlie Nickel Project (KNP).

The Japanese pair can claim up to 50 per cent of the Goongarrie Hub operation by funding the DFS and also by helping Ardea secure debt financing for the project as part of the JV agreement.

The KNP consists of an 854 million-tonne resource at 0.71 per cent nickel and 0.045 per cent cobalt for a total of 6.1 million tonnes of contained nickel and 386,000 tonnes of contained cobalt. Goongarrie Hub comprises the bulk of the resource, with 584 million tonnes going 0.69 per cent nickel and 0.043 per cent cobalt.

The three main deposits sit within granted mining leases and ground that is 100 per cent controlled by the company.

Nickel has taken a pricing breather in the past two years, but it is still a “go-to” material for use in electric-vehicle (EV) batteries. The major advantage of using nickel in batteries is that it helps deliver higher energy density and greater storage capacity at a lower cost.

Further advances in nickel-containing battery technology means the commodity is set to play an increasing role in energy storage systems, helping make the cost of each kilowatt per hour (kWh) of battery storage more competitive.

Two of the most commonly-used types of batteries, nickel-cobalt- aluminium (NCA) and nickel-manganese-cobalt (NMC), are made with 80 per cent and 33 per cent nickel, respectively. However newer formulations of NMC-type batteries are also approaching 80 per-cent nickel.

Most lithium-ion batteries also now rely on nickel.

The nickel price has fought back to rise about 5 per cent this year to a current mark of about US$17,100 (AU$25,500) per tonne, on the back of an improving sentiment. The price touched more than US$21,000 (AU$31,200) in May.

A recent report by the International Nickel Study Group (INSG) says low prices have taken a toll on producers, with many operators curtailing capacity or closing off production. The result has been a reduced glut of supply overhanging the market, but the INSG noted that a surplus of supply did still exist.

If Ardea’s compelling project, backed by two Japanese heavyweights, can kick up the numbers needed to begin operations, it appears likely to be able supply the nickel needed for the energy transition for decades to come.

Is your ASX-listed company doing something interesting? Contact: [email protected]