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Mining industry needs US$2.1 trillion investment by 2050 to meet net-zero demand for metals

Raw Materials needed to meet the energy transition could face significant deficits in the next 10 years, some as soon as this year, and will need an estimated US$2.1 trillion in new mining investments by 2050 to meet demand, according to the latest BloombergNEF Transition Metals Outlook report.

The metals facing a supply squeeze include aluminium, copper, lithium and graphite.

Market balances for energy transition metals under BNEFs Economic Transition Scenario and Net Zero Scenario — expected supply surplus and supply deficits - The Oregon Group - Investment Insights

“The prolonged deficit of these metals will lead to higher prices for raw materials, which increases the cost of clean energy technologies. High costs could slow their adoption, and the energy transition at large”

— Kwasi Ampofo, head of metals and mining at BNEF and lead author of the report said

BNEF’s Economic Transition Scenario (ETS) forecasts the world could require 3 billion metric tons of metals between 2024-2050 to build out low-carbon solutions such as electric vehicles, wind turbines and electrolyzers. This forecast rises to 6 billion tons to reach net zero in 2050.

Growth of energy transition metals demand relative to 2020 levels under BNEFs Economic Transition Scenario by region 1 - The Oregon Group - Investment Insights

And that’s just metals.

The report estimates a fully decarbonized global energy system by 2050 could cost US$215 trillion.

Global energy investment and spending across 2024 2050 Economic Transition Scenario and Net Zero Scenario - The Oregon Group - Investment Insights

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The Oregon Group

The Oregon Group is an investment research team focused on critical minerals, mining, energy and geopolitics.

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