Cannon IPO steak and sizzle, page-190

The transition to a lower-carbon world could drive a commodities price boom that is even longer, deeper and broader than the storied, decade-long super cycle that came on the back of voracious Chinese demand in the early 2000s, experts told BMO’s 30th Global Metals and Mining Conference.

Panelists on an Energy Metals Transition breakout session, hosted by BMO Capital Markets commodities analyst Colin Hamilton, said the next super cycle will be multi-metal and will not be limited to a single region or geography.

The next big demand wave will be based on the green energy transition.”

All Things Energy

Whether it’s aluminum or copper for electric vehicles or transmission infrastructure, or metals ranging from cobalt to nickel and lithium in the manufacture of EV batteries, the energy transition will apply pressure to metals across the sector as the world’s economies drive toward net zero.

Panelists predicted strong demand growth for minerals and metals ranging from vanadium – used in nuclear reactors, ceramics and superconducting magnets – to nickel, zinc, platinum and even tin.

According to Charlie Durant, Research Manager at CRU Group, copper and nickel will experience massive demand jumps in the next 20 to 25 years, driven by the transition to renewable fuels and especially as electric vehicle production becomes the standard for automobile manufacturers.

Durant said that, by 2035, 33% of primary nickel demand will come from electric batteries, versus 8% now.

As a reference, the last super cycle saw average annual demand for key commodities grow at a rate that was three times the average growth rate for the past 50 years, Lewnowski said.