IMF : Consumption of nickel, lithium, cobalt, etc. will increase six times
November 16, 2021
According to the International Monetary Fund (IMF), under the scenario of achieving net zero emissions by 2050, the historic transformation of global carbon emissions containment may stimulate unprecedented demand for some of the most critical metals used in the production and storage of renewable energy.
Demand grows, and supply release takes time. The prices of copper, nickel, cobalt, and lithium have risen year after year. Soaring costs may continue until the end of this decade, and may disrupt or delay energy transition plans.
Under the high target scenario given by the International Energy Agency, the consumption of lithium and cobalt will soar more than six times to meet the demand for batteries and other clean energy.
The use of copper will double and the use of nickel will quadruple, although this also includes meeting demands that are not related to clean energy. The mismatch between raw material supply and demand cannot be eliminated. The supply side is subject to the capacity release cycle, and it often takes a long time to rebalance supply and demand.