By 2050, the global mining industry will require significant new investments to keep up with the growing demand for raw materials and support the transition to a low-carbon economy driven by the expansion of electric vehicles (EV) and renewable energy infrastructure.
On Friday, industry sources revealed that BloombergNEF (BNEF), a market research firm, announced in its annual transition metals outlook report that the mining sector will need approximately $2.1 trillion in investments by 2050 to align with global raw material demand.
BNEF warned that the supply of crucial minerals like aluminum, copper, and lithium is already falling short and could lead to significant shortages, starting this year and continuing for the next decade. These materials are essential for building EVs, wind turbines, and other low-carbon technologies.
Under a scenario where no new policies are introduced and the market is driven by technological cost competitiveness, BNEF predicts that the world will need 3 billion tons of metals by 2050 to support the transition to a greener economy. However, if the goal is to achieve carbon neutrality by 2050, this figure could rise to as much as 6 billion tons.
BNEF anticipates that recycling will play a key part in the supply chain for critical minerals to ease the pressure on mining. Recycled materials could help meet the demand and reduce the need for raw extraction.
Allan Ray Restauro, a metals and mining associate at BNEF, stressed the importance of government policy support to help the mining industry meet these challenges. He called for policies that promote the collection and recycling of used batteries, develop recovery rate standards, and create tracking systems for battery components.
Demand for raw materials will vary by country. China has recorded consumption levels that exceed the global average from 2020 to last year, but its demand for key minerals is anticipated to peak by 2030. Meanwhile, Southeast Asia is projected to become the fastest-growing metals market in the 2030s.
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