there won't be enough copper to meet climate goals, study indicates

Don’t let copper’s latest rout fool you: Supply shortages will be so severe and prices so high in coming years that they risk delaying the global shift away from fossil fuels.

That’s the conclusion of a new S&P Global study that warns of “unprecedented and untenable” copper shortfalls in the coming decade as suppliers grapple with a near doubling of demand by 2035. Prices that fell below $7,500 a metric ton this week are set to soar back above their $10,845 peak later this decade, driven by the metal’s key role in the clean-energy and transport industries, S&P Global said.

“Either supply miraculously appears or the goal of energy transition just gets pushed out further,” said S&P Global Vice Chairman Dan Yergin.

The bullish findings are a long way from the slowdown of recent months, when copper lost a third of its value from a March peak. Analysts from Goldman Sachs Group Inc. to Bank of America Corp. have slashed their near-term forecasts in anticipation of a drop in consumer spending and industrial activity. New supply coming online in Peru and the Congo has added to the bearish sentiment.

Longer term, though, the equation changes. Demand is set to reach around 50 million tons by 2035 from 25 million today, the S&P Global study found. With new deposits trickier and pricier to find and develop, the main sources of new supply would come from recycling and gains at existing mines.

Based on current trends, an annual supply shortfall of almost 10 million tons would open up in 2035, the study found. That’s equivalent to 20% of demand projected to be required for a 2050 net-zero world. Even assuming aggressive growth in capacity utilization and all-time high recycling rates, the market would still face persistent deficits, including nearly 1.6 million tons in 2035, it said.

The S&P research was commissioned in response to concerns raised by governments and multilateral agencies over minerals needed to meet climate goals, and was supported by copper producers including Anglo American Plc and BHP Group. It found that the burgeoning supply gap would increase the US’s reliance on copper imports from 44% to as much as 67% by 2035.

To be sure, big deficits are hypothetical, with higher prices potentially boosting supply or curbing demand. That’s the view of McKinsey & Co.’s Ken Hoffman, who sees high prices flushing out more supply via efficiencies at existing mines and increased scrap activities, as well as a push to reduce metal usage in new energy industries.

There may also be more pricing flexibility than anticipated in electric-vehicle demand, Hoffman, the co-head of McKinsey’s EV battery materials research group, said in an interview. “The cure for high prices is high prices,” he said. “Markets tend to adjust.”

Related video:

Keyword: There won't be enough copper to meet climate goals, study indicates

CAR'S NEWS RELATED

Best cars for a 'Love Bug' remake

Tennessee’s Yard Art The Thorndyke Special The Hot Rod The Hippie Van Jim’s Lamborghini Growing up, it’s safe to say my absolute favorite movie was Disney’s “The Love Bug.” As a kid living in a world before Pixar’s “Cars,” it was pretty much the best car movie. I loved ...

View more: Best cars for a 'Love Bug' remake

Audi timing belt tensioner prompts Utah bomb squad visit

An aftermarket timing belt tensioner found in a Salt Lake City apartment prompted a visit from the bomb squad this week after it was mistaken for a potential explosive device. Police partially evacuated the apartment complex in which it was found “out of an abundance of caution” and called ...

View more: Audi timing belt tensioner prompts Utah bomb squad visit

2023 GMC Sierra HD 2500 and 3500 will get more expensive

GMC Sierra HD pickups are about to get more expensive again after recently becoming more expensive, according to GM Authority. In July, GMC and Buick raised the prices on certain vehicles in their lineups anywhere from $975 to $1,675 by making the previously optional OnStar a standard feature. Next ...

View more: 2023 GMC Sierra HD 2500 and 3500 will get more expensive

Our week with EVs: Recapping the diverse collection of electric cars we tested

Mercedes-Benz EQB First Drive Review: Next electric Benz is a little different 2022 Chevy Bolt EV Road Test Review: Time to play EV, gas or airplane 2023 Genesis GV60 Road Test Review: The third of Hyundai Group’s E-GMP EVs is the fastest, but softest It may be hard to ...

View more: Our week with EVs: Recapping the diverse collection of electric cars we tested

Europe car sales lowest since 1996 after 12-month decline

BERLIN – Europe registered the lowest number of new passenger cars in the month of June this year since 1996 at just over 1.06 million vehicles, with some carmakers seeing sales drop by nearly 50%, data from Europe’s automobile association showed on Friday. Volkswagen Group was the hardest-hit major ...

View more: Europe car sales lowest since 1996 after 12-month decline

More Than Just A Carmaker: Toyota Motor PH Launches Toyota Mobility Solutions

Automotive industry leader, Toyota Motor Philippines Corporation (TMP) inaugurated today Toyota Mobility Solutions Philippines, Inc. (TMSPH), a wholly owned subsidiary that will be a provider of mobility-related services. TMSPH ventures into the development and offering of a range of ‘new mobility solutions’ that will enhance Toyota as a brand ...

View more: More Than Just A Carmaker: Toyota Motor PH Launches Toyota Mobility Solutions

'F1 22' feels fast and familiar | Gaming Roundup

‘F1 22’ impressions ‘Construction Simulator’ is launching Sept. 20 Autoblog may receive a share from purchases made via links on this page. Pricing and availability are subject to change. This week in racing game news: ‘F1 22’ impressions At its core, “F1 22,” the latest installment in the F1 ...

View more: 'F1 22' feels fast and familiar | Gaming Roundup

Watch a single-engine plane crash-land on 91 Freeway in California

A single-engine Piper Cherokee airplane was forced to crash land on the 91 Freeway in California after losing power about 45 minutes outside of Los Angeles. Yes, that means this was a very busy highway, practically bursting at the seams with traffic. No, amazingly nobody died, either in the ...

View more: Watch a single-engine plane crash-land on 91 Freeway in California

Ford files 'Mustang Dark Horse' trademark application

Make adventures more comfortable with high-quality Jeep grab handles

New Lucid Air variant to debut & Stealth Look to be on display during Monetary Car Week

Chevy offers incentives to prevent Corvette Z06 flipping

Average U.S. gas price falls below $4/gallon

German court: SUV driver must pay more than a car for running red light

Australian vehicle crash tests to include underwater performance

Toyota C-HR rumored to get revamp next year and an EV version

Geely's electric Zeekr 009 is an EV Alphard we never had; 700 km, 542 PS, top speed 190 km/h

A Newey, Brawn and Anderson row that shows F1 doesn’t change

Sorry, EV buyers, you won't get to pick your own pedestrian safety sounds

EPA announces electric, low-emissions school bus funding

OTHER CAR NEWS

;
Breaking thailand news, thai news, thailand news Verified News Story Network