The clean energy technology sector is becoming an increasingly important driver of demand for base metals, economists at ANZ Bank report.
Clean energy powering metals
Critical minerals have taken the limelight amid the acceleration in energy transition. However, traditional base metals are likely to see a demand surge as they become increasingly important.
Demand has now reached critical volumes in Copper and Nickel, with its market hitting 22% and 27% respectively in 2022. More importantly, growth over the next three years is expected to see these levels significantly rise. So much so that even below-average growth from traditional sectors such as construction and manufacturing won’t stop total demand from recording strong growth rates.
For the moment, the impact of strong demand from clean energy technologies on market sentiment is likely to remain subdued. That could change once the broader market environment is not clouded by issues such as inflation and interest rates.
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