The increasing demand for these metals, which are crucial to the current energy transition, suggests that fossil fuels will lose a significant share of the world’s energy demand.
Key fact: In 2021, commodity prices for copper and nickel soared, reaching over US $8,000 and $18,000 per metric tonne, respectively
Driving the current mining boom are several factors, including economic recovery following the COVID-19 slump and the value drop of the US dollar. Given the rising demand for metals, another key factor is the impetus to invest in renewable energy sources and achieve net-zero targets.
Key fact: By 2050, fossil fuels’ share of energy demand is expected to fall to 50%
The mining industry will need to maintain supply elasticity to meet this growing demand and level-out commodity prices. This means more investments will be needed in order to fortify long-term supply.
Benefits
Incentivises need for sufficient supply
Increasing investments in renewables
Decreasing fossil fuel demand
