The energy transition is set to benefit nickel and copper in the long-term, with demand to be boosted by rising electric vehicle sales and battery demand. Experts in the field have forecasted robust prices for battery metals like nickel and copper in the next few years. Pala Investment head strategist estimated that demand from batteries would make up 10% of the nickel market by 2025, rising to 30% by 2030. By 2030, the nickel market would need to be 60% larger than it is today to meet demand from traditional markets like stainless steel, as well as the growing battery market.
CRU director of base metals research & strategy stated that while global copper consumption was set to increase by 5% in 2021 and then halve in 2022 to 2.5%, the medium-term outlook for demand was still "extremely positive" due to the green energy transition; "The green energy transition is important, as prospects for copper use in green applications are already influencing market sentiment." The director also forecasted that while copper prices may drop in 2022, they are expected to remain at historically high levels and well above metal price levels across the board.
The world is going "ALL IN" for a cleaner future, with many battery makers or majors scrambling for quality lithium and Graphite assets. Graphite is particularly of importance for the use of anodes in Li-ion batteries. However, most of the current world’s graphite production is coming from China. It will be extremely important for the industry to be able to find graphite sources in other places to make sure the supply chain is not disrupted. Similarly, the supply of REE materials, which are traditionally needed for many technology and electronic devices, is also controlled predominantly by China. Thus the opportunity will be tremendous for these companies to explore and develop graphite and REE deposits outside of China.
The global trend to a cleaner economy has paved the way for nuclear energy. Uranium price finally is trending north towards 2022 after years of depression. China's plan for 150 new nuclear plants in the next 15 years will create stronger uranium demand in the forseeable future.
Base Metals and Energy Metals are expected to maintain its bullish trend in 2022. Join this event to learn more industry updates and investment opportunities.