It takes about 12 tons of sulfur to make 1 ton of mixed-hydroxide precipitate, or MHP, a form of nickel aimed at automakers. Given the surge in sulfur costs, HPAL factories need to pay over $2,500 more than last year for each ton of MHP, pressuring margins in an industry that is still growing, said Fan. At present, the average cost of producing 1 ton of MHP stands at about $11,000.