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A Shift to Clean Energy Will Tighten Metals Markets

Demand for the metals needed in the energy transition to a less carbon-intensive economy will increase significantly in the coming decades.

According to FitchRatings, in terms of supply, the response of mining companies will depend on the developed technologies, government policies and investor behavior. On the other hand, it will depend internally on the operational strength of each one, on the portfolios of mineral reserves and on the efficient allocation of capital.

Compared to the "traditional" economy, based on oil, gas, coal, the new forms of energy production require more minerals such as copper, nickel, cobalt, lithium, aluminum. An average electric vehicle (EV) powered by a nickel-manganese-cobalt (NMC) battery needs 4x more copper and 30x more nickel than an internal combustion engine (ICE) vehicle, and its body contains 40% more aluminum . One megawatt (MW) of electricity from solar and offshore wind requires, on average, 12 times more metals than coal and gas generation.

The challenge for miners is not just to deliver increasing volumes, but to simultaneously maintain the quality of their own ESG standards.

Click below to access the FitchRatings report “Energy Transition Means More Metals” and see in more detail how:

  • BHP and Rio Tinto reorganizing their portfolios

  • Anglo American, with a conservative financial profile and better positioned on fossil fuels

  • Zijin Mining expanding its lithium carbonate, copper and other mine assets in China and abroad

among more information.


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“Nothing in life is to be feared, it is only to be understood. Now is the time to understand more, so that we may fear less.”

“I am among those who think that science has great beauty”

Madame Marie Curie (1867 - 1934) Chemist & physicist. French, born Polish.

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