Copper is critical to energy transition. The world is falling way behind on producing enough
Publishing timestamp: 2023-09-27 09:08:06
Summary
Demand for copper is expected to double by 2035 due to its role in the energy transition. However, mining companies are struggling to keep up with the demand, which could hamper clean energy growth and the goal of achieving net-zero emissions by 2050. The industry needs investment in new extraction projects to meet future growth. Shortages and delays in clean energy projects are already being observed due to higher costs and supply chain issues. Additionally, political factors, such as potential dismantling of clean energy projects and delays in climate change mitigation commitments, could further impact copper demand. The long lead time for establishing new mining projects and the focus on optimizing existing assets are also challenges. However, innovations in extraction technologies, automation, electrification, and recycling efforts are being explored to address the supply-demand gap. Despite the challenges, the transition to clean energy and the critical need for copper are inevitable.
Sentiment: MIXED
Tickers: FCX, RIO-GB, @HG.1, RIO, CAT,
Keywords: copper (mar'23), freeport-mcmoran inc, metals and minerals industry, caterpillar inc, base metals industry, rio tinto plc, copper markets, technology, business news, base metal markets, copper manufacturing,