Energy transition commodities: Riding the wave of new demand drivers
Published 24 February 2022
Wood Mackenzie
Source: Wood Mackenzie, 2022. Forecasts are not an indicator of future performance and any investments are subject to risks and uncertainties.
The scale of the challenge is enormous. Equally broad are the means by which the global response to need for more energy and less emissions is being made. Electric vehicles (EVs), energy storage, charging, electricity transmission and distribution cables, solar and wind generation; hydrogen across the energy value chain we see regulatory, market and technology trends calling forth unprecedented levels of demand for certain mined commodities over the next 3 years (see Table1).
Table1: Energy Transition Commodities and Applications
Source: Wood Mackenzie, 2022. Forecasts are not an indicator of future performance and any investments are subject to risks and uncertainties.
But the current projection for supply growth is not sufficient to meet technology needs. The resulting structural undersupply would typically lead to higher prices as manufacturers compete to secure raw materials. The question is what price level will be enough to incentivise the required metals capacity?
The views expressed in this blog are those of Wood Mackenzie, any reference to “we” should be considered the view of Wood Mackenzie and not necessarily those of WisdomTree Europe.
Wood Mackenzie, a Verisk Analytics business, is a trusted source of commercial intelligence for the world’s natural resources sector. Wood Mackenzie empowers clients to make better strategic decisions, providing objective analysis and advice on assets, companies and markets.
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Wood Mackenzie
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