[MEDIA] The current love for copper is also fuelling mergers and...

The current love for copper is also fuelling mergers and acquisitions activity in the copper sector.

What really separates copper from other battery metals such as lithium is the sheer size of the market. Lithium may have stronger demand growth in the medium term, but the market size is only worth around US$7 billion (vs copper at >US$290 billion) and the use cases for lithium are specialised and niche, with a focus on battery technology, whereas copper demand is far broader.

“These market dynamics make copper a highly desirable metal for mining companies particularly global giants who are looking to reinvest billions of dollars in the sector. Consider BHP’s comments about not entering lithium sector. Market is too small and risk around technologies could mean long term substitution of the metal."

Cheers

These are only my thoughts and it does not constitute investment advice. Before acting on any information you read and before making any financial or investment decisions, you should always consult your advisor(s) or other relevant professional experts.