O Economist at Banco Carregosa Paulo Rosa states that the minerals market has registered “unprecedented” growth as the demand for clean energy drives a strong increase in investment in this area.
The market for minerals that help power electric vehicles, wind turbines, solar panels and other technologies essential to the energy transition has doubled in size over the past five years, according to the International Energy Agency (IEA).
Aiming for carbon neutrality by 2050, copper plays a critical role in promoting the green transition, being a malleable metal with high electrical conductivity and its main use is in electrical applications.
Electric vehicles represent around 5% of total copper demand, but Paulo Rosa estimates demand will grow sharply in the coming years.
In fact, since the beginning of the year, copper has appreciated sharply and on April 26 it surpassed the level of 10,000 dollars per ton on the London market, a maximum in two years.
Allianz Global Metals and Mining fund manager David Finger believes that the use of Artificial Intelligence (AI) could increase the annual demand for copper by up to 5%, as this metal has critical characteristics of electrical infrastructure and is essential for conventional data centers. , AI ‘data centers’, which use more energy and reach higher temperatures during operation.
As for lithium, the lightest of all metals, it is widely used in batteries. Approximately 60% of lithium products are used in electric vehicle batteries, with the remainder used in batteries for mobile devices, such as smartphones and computers, says the senior economist at Banco Carregosa.
Regarding nickel, Paulo Rosa mentions that 16% of all nickel produced goes to clean energy applications, such as electric vehicle batteries.
“Given the potential normalization trajectory of the Chinese economy, this could also increase raw materials, which are currently out of focus such as nickel […]. The central government seems determined to combat the current disinflationary environment and boost demand”, says David Finger in statements to Lusa.
Still, data from the JP Morgan monthly raw materials report shows that the price per ton of nickel in January 2024 is around $4,000 lower than in the same month last year, having fallen from $20,346 in January 2023. to $16,568 in January 2024.
Read Also: Luís Cabral argues that Social Security should not be financed by work
Download our free App.
Eighth consecutive year Consumer Choice for Online Press and elected product of the year 2024.
* Study by e Netsonda, Nov. and ten. 2023 product of the year – pt.com
Download our free App.
Eighth consecutive year Consumer Choice for Online Press and elected product of the year 2024.
* Study by e Netsonda, Nov. and ten. 2023 product of the year – pt.com
Tags: Copper lithium nickel identified metals greatest potential
--
