The Nickel Mines Ltd (ASX: NIC) share price is set to finish Wednesday's trading session on a high note. This comes as the low-cost nickel producer is enjoying multi-year highs on the spot price of nickel.
At the time of writing, the company's shares are swapping hands for $1.555, up 6.87%. It's worth noting that earlier in the morning, its shares rose to a record high of $1.565.
Nickel Mines shares continue to impress
The Nickel Mines share price is surging today following positive investor sentiment in the electric vehicle (EV) battery sector.
Nickel is a key component in lithium-ion batteries, which is used in generating power for electric vehicles. Nickel is able to produce a lot more energy into batteries than using cobalt. The latter is considered a more expensive metal and has fewer purposes across industries.
On the back of rising interest in the sector, the price of nickel has accelerated to US$21.04 per kilo. The crucial metal has risen close to 22.6% since this time last year.
Last month, the company announced it signed a conditional share purchase agreement with Bolt Metals to acquire the Tablasufa Nickel Project.
The potential US$8.5 million purchase would represent another opportunity for Nickel Mines to expand its nickel portfolio.
Nickel Mines managing director, Justin Werner commented:
Located on the coast with a number of potential jetty locations already identified through previous bathymetry studies, it provides excellent potential logistics for the low-cost movement of ore and equipment in the future.
Through the acquisition of Tablasufa, Nickel Mines will further grow its presence in the emerging nickel province of West Papua. The province has historically undergone significant exploration by many of the majors and remains highly prospective.
Nickel Mines share price snapshot
Over the last 12 months, the Nickel Mines share price has accelerated by 25%, with year-to-date up 8%. The company's shares slumped in early October to 88.5 cents before zooming to an all-time high of $1.565 today.
Based on today's price, Nickel Mines commands a market capitalisation of roughly $3.89 billion, with approximately 2.52 billion shares outstanding.
