From Creamer's Mining Weekly:
$1tr needed for key energy transition metals by 2035 – WoodMac
More than $1-trillion of investment will be needed in key energy transition metals - aluminium, cobalt, copper, nickel and lithium - over the next 15 years to meet the growing demands of decarbonisation, says consultancy group Wood Mackenzie (WoodMac).
This is almost double the figure invested over the previous 15 years.
“One can argue about both the pace and scale of the energy transition, but the criticality of metals to its realisation is without question. Put simply, the energy transition starts and ends with metals. If you want to generate, transmit or store low/no-carbon energy you need aluminium, cobalt, copper, nickel and lithium,” says WoodMac vice chairperson of metals and mining, Julian Kettle.
However, he notes that the fundamentals for several metals are poor and deteriorating, with prices for most well below long-term incentive levels.
"Long-dated returns from investing in mining and processing sit uneasily against the need for certainty of regular dividend payments or the near-term gains that can be made from other popular asset classes. This severely hampers the ability of boards to undertake the necessary long-term decisions needed to develop the supply that high-growth energy transition related commodities demand....
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