As industries crucial for combating climate change, such as electric vehicles and renewable energy, rapidly advance, prices for key metals like copper, aluminum, lithium, and nickel are expected to rise.
This surge in demand is predicted to lead to structural changes in the market by 2050.
On the 24th, investment journal MarketWatch cited a report from market research firm Capital Economics, forecasting an acceleration in the 'green transition' in major industries such as automotive and energy.
The rapid growth of eco-friendly industries related to electric vehicles, renewable energy, and energy storage systems is anticipated to continue.
Capital Economics views the global effort to limit the rise in average global temperature to within 2 degrees Celsius above pre-industrial levels as a key driver of green industry growth.
This transition to green technologies is expected to increase dependence on a few key metals.
Specifically, copper and aluminum used in power infrastructure, lithium, nickel, and cobalt used in batteries, and zinc used in wind power generation are projected to become the most important metals.
Capital Economics estimates that the total demand for these metals, which is around 10 million tons in 2023, could triple by 2030.
The total amount of key metals needed by 2050 is expected to be around 70 million tons, seven times that of 2023, indicating a steady increase in demand over the next 26 years.
The global average prices for these metals are already on an upward trend. According to MarketWatch, copper futures recently hit an all-time high of $5.199 per pound.
However, Capital Economics notes that long-term forecasts for metal demand are challenging due to potential changes in the types and proportions of metals required by specific industries as technology evolves.
Tags
RAW MATERIAL
