The metals and mining industries will play a key role in the global transition to a low-carbon future, and demand for copper, aluminum, lithium and cobalt will be further boosted, according to BMI, a research institute of Fitch, a leading global rating agency. Policymakers and mining will face new challenges in balancing the Low-carbon future with sustainable metal production over the next few years.

With the rise of the electric car market and the popularization of renewable energy, copper demand will remain stable for the next 10 years. Reducing transport emissions is a key aspect of tackling climate change, and electric cars are trying to do that. Conventional internal combustion engines used in motor vehicles usually contain about 20 kilograms of copper, while electric vehicles use 80 kilograms. In addition, wind and solar power consume more than non-renewable energy in terms of copper used per unit of electricity. For example, the amount of copper used in coal-fired power stations is 2 kilograms kw/kilowatt, while solar power facilities are 5 kilograms kw.

In order to meet stricter greenhouse gas emissions standards, the auto industry will continue to innovate to reduce vehicle weight, thereby boosting demand for aluminium. High-end luxury carmakers are still the main consumer of steel in the automotive industry, although the price per ton of steel is only 1/3 of aluminium, because expensive car pricing covers higher material costs. The Aluminum Association of the United States (Aluminum Association) believes that, compared to the steel structure, the car weight of the aluminum body structure is reduced by 50%, absorbing twice times of collision energy, requires less fuel, and can reduce carbon dioxide emissions as high as 17%.

The battery revolution will push the demand for lithium and cobalt over the next few 10 years. The production of lithium-ion batteries will continue to grow, based on the demand of portable electronics, residential and utility-scale power storage, as well as electric and hybrid vehicles. Lithium-ion batteries are expected to continue to grow in the coming years because of increasing role in key markets such as the United States, the European Union and China. The production of lithium-ion batteries also requires cobalt, mainly produced by copper by-products from the Democratic Republic of the Congo (DRC). Cobalt prices have risen more than 300% per cent over the past 18 months as a result of supply panic.