Materials – Energy transition

According to Goldman Sachs, western nations will be required to proceed with new capital expenditures in the region of $160 billion within the next five to seven years to regain independence for manufacturing batteries. While mining is obviously key in this process, we believe that developing manufacturing capacities to recycle used components is a much more promising process. According to a report published by Mckinsey, more than 20 different metals are critical to achieve the energy transition. It can be expected that a commodity super-cycle is in the making with the demand for copper and nickel to increase two times, respectively, four times in the next decade. The full list of companies that expect benefits can be accessed here.