Nickel has joined a wider rally across commodity markets, climbing to its highest level in a decade as stockpiles dwindle and major car producers ramp up production of electric vehicles.

The metal, which is used in more powerful EV batteries, rose by as much as 4 per cent on Wednesday to a 10-year high of $22,745 a tonne as stockpiles in warehouses approved by the London Metal Exchange fell for the 51st straight day. In China, nickel stocks in official warehouses are close to a record low at just 4,859 tonnes.

“With China’s policy response gathering steam at a moment of severely depleted inventories, micro and macro conditions are beginning to align, driving a repricing of metals toward scarcity,” said Nicholas Snowdon, analyst at Goldman Sachs.