Keep an eye on nickel stocks.

With the electric vehicle boom accelerating, Tesla just inked a nickel deal with BHP Group.

“Demand for nickel in batteries is estimated to grow by over 500 per cent over the next decade, in large part to support the world’s rising demand for electric vehicles,” said BHP Chief Commercial Officer Vandita Pant, as quoted by Barron’s. “We are delighted to sign this agreement …and to collaborate with them on ways to make the battery supply chain more sustainable through our shared focus on technology and innovation.”

Moving forward, Tesla wants to increase its volume by about 50%.

However, for that to happen, Tesla must have raw materials on hand, including lithium, cobalt, graphite, silver, copper, and nickel.

Plus, according to a new study by Ernst & Young, electric vehicles could outpace combustion engines in the next 12 years in the U.S., Europe, and China, according to The Street. “By 2045, non-EV sales were seen plummeting to less than 1% of the global car market.”

In addition, according to Global Trader Magazine:

“According to World Bank, the average nickel price in the first half of 2021 reached $17,489 per tonne, which was 27% higher than the 2020’s average price of $13,787 per tonne. Rising demand from the recovering steel industry and from emerging electric car manufacturing provokes the price rally, while the supply is expected to be insufficient in the immediate term due to a decrease in the mined output.”

Other than BHP, some of the other top nickel stocks include Vale SA (VALE), FPX Nickel (PFOCF), Talon Metals (TLOFF), and nickel ETNs such as the iPath Series B Bloomberg Nickel Subindex Total Return ETN (JJN). Another hot EV metals stock to consider is the Global X Lithium & Battery Tech ETF (LIT), which last traded at $80 a share.