• Membership
  • Advert Rates
  • Careers
  • About Us
  • Contact Us
  • Digital Store
Monday, June 2, 2025
The Trumpet Newspaper Nigeria
No Result
View All Result
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition
No Result
View All Result
The Trumpet Newspaper Nigeria
No Result
View All Result
ADVERTISEMENT
Home News

Investment opportunities, sustainability concerns mount over $16tr global ‘critical minerals’ market

Demand for lithium, copper, nickel, cobalt, others to witness 475% increase by 2050

Edu Abade by Edu Abade
November 15, 2024
in News
Reading Time: 3 mins read
0
Investment opportunities, sustainability concerns mount over $16tr global ‘critical minerals’ market
0
SHARES
13
VIEWS
Share on FacebookShare on TwitterShare on LinkedinShare on WhatsAppShare on Pinterest
  • Fossil fuel emissions will continue up to 2050 because of rising energy demands
As pressure continues to mount for lower emissions and an end to extraction of fossil fuels globally, investment opportunities and sustainability concerns remain paramount in exploring what has been described as the ‘critical minerals’ market now projected at over $16 trillion in the next decade.

This follows a new research conducted by Mckinsey, a leading consulting firm, which identified gaps between supply and demand for critical metals, maintaining the gaps appear to be narrower than previous forecasts, but limp commodity prices mean investments in production are still lagging.

The consulting giant has long cautioned that demand for metals crucial to the energy transition, including lithium, nickel and copper, is likely to far outstrip supply over the next decade.

ADVERTISEMENT

TradeBriefs reports that Mckinsey had repeatedly urged industry players, including commodity traders and lenders, to provide financial and advisory services to ensure production can be increased sufficiently, particularly by supporting companies and projects in the mining sector.

A report published by McKinsey on Tuesday, September 17, 2024 revealed that supply of critical metals is “scaling up faster than expected,” meaning that expected supply-demand in 2035 is “more balanced compared with 2023 perspective.”

It also indicated that production of lithium and nickel has exceeded 2020 projections by nearly 20 percent, adding: “Lithium has benefited from assets coming online more quickly than expected in Australia and the United States, as well as from an increase in China, while nickel’s ramp-up largely stems from assets in Indonesia.

“Nickel and cobalt have both moved from expected undersupply to oversupply in the past year, McKinsey adds. At the same time, demand has already shifted towards alternative materials in anticipation of supply gaps.”

However, the report also found that there are still anticipated supply shortfalls for several metals over the next decade, including gaps of 30-40 percent for lithium, 30-40 percent for rare earth elements and 10-20 percent for copper.

In the copper market, McKinsey says expected projects have not yet become operational and existing assets have decreased production more quickly than anticipated.

And despite the increase in lithium production, material demand is forecast to increase by as much as 475 percent by 2035.

To ensure supply can keep up with rising demand, the report says commodity price increases will likely be required to make financing more attractive.

Read Also: FG warns Nigerians to relocate as Cameroon releases Lagdo Dam’s waters

International organizations have previously found low prices are causing the mining industry to delay projects, while commodity traders face further obstacles due to limited access to derivatives and hedging tools and opaque market pricing information.

Senior partner at McKinsey, Michel Van Hoey, said: “According to our analysis, there is currently sufficient financing capacity in the industry to scale up production, with $5.9 trillion in financing capacity available. However, the business case is not always attractive enough to incentivize investment.”

Van Hoey added that based on current pipelines, research suggests lithium prices would need to increase by around 30 percent, copper by 20 percent and nickel by 5 percent to strengthen supply sufficiently. The report suggests that such price increases appear unlikely in the immediate term.

The extreme market fluctuations and price volatility that characterized much of the post-pandemic period and resulted in record profits and cash accumulation by large commodity traders are “unprecedented in scale.”

“2024 is projected to be a more challenging year for the industry as overall economic growth slows down and the shift toward low-carbon technologies unfolds more slowly than expected, both of which are putting downward pressure on price levels, especially for battery materials such as nickel and lithium,” it said.

A survey carried out by McKinsey noted that industry participants are unlikely to pay extra for low-carbon materials, adding: “In fact, less than 15 percent of surveyed decision makers indicate they would be willing to pay a premium of around 10 percent if there was a scarcity of green materials by 2030.”

A separate McKinsey report, also published the same day, found that global carbon emissions are likely to remain well above the levels needed to reduce warming to 1.5°C by 2050-even if all countries deliver on existing climate commitments.

It insisted that increased energy demand will mean emissions from fossil fuels would continue to rise over the next decade, with a decline starting only in 2050.

Tags: cobaltcopperDemand for lithiumInvestment opportunitiesnickel
Previous Post

Enugu LG polls: PDP sweeps all council chairmanship, seats

Next Post

RIVCHPP seeks greater collaboration with SPDC to provide seamless healthcare services in Rivers

Edu Abade

Edu Abade

Next Post
RIVCHPP seeks greater collaboration with SPDC to provide seamless healthcare services in Rivers

RIVCHPP seeks greater collaboration with SPDC to provide seamless healthcare services in Rivers

About The Trumpet

The Trumpet is a Nigerian based national news media, owned, trademarked and operated by Elomaz Communications Limited with headquarters in FCT-Abuja and regional offices in Lagos and Delta States

Follow Us

Resources

  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition

Recent News

Blessing Oborududu of Nigeria

NUJ Bayelsa fecilitates African wrestling champion Oborududu on retirement

June 2, 2025
Police clamp down on illegal motorparks in Gombe

Police clampdown on illegal motor- parks, enforce single loading point in Gombe

June 2, 2025
  • Cookie Policy
  • Disclaimer
  • Contact us
  • About Us
  • Cookie Policy
  • Disclaimer
  • Contact us
  • About Us

© 2025 The Trumpet News Papers - Developed by VIS Nigeria.

No Result
View All Result
  • Home
  • News
    • Breaking News
    • Headlines
    • Metro
    • Health
  • Politics
  • Business
    • Ecommerce
    • Economy
    • Start-up
  • Entertainment
  • Sports
  • Opinion
    • Religion
    • Columnists
    • Contributors
    • Editorial
  • Global
    • Climate
    • Culture
    • Tourism
    • Technology
    • Weather
    • Social Media
  • e-Edition

© 2025 The Trumpet News Papers - Developed by VIS Nigeria.

We use cookies on our website to give you the most relevant experience by remembering your preferences and repeat visits. By clicking “Accept All”, you consent to the use of ALL the cookies. However, you may visit "Cookie Settings" to provide a controlled consent.
Cookie SettingsAccept All
Manage consent

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. These cookies ensure basic functionalities and security features of the website, anonymously.
CookieDurationDescription
cookielawinfo-checkbox-analytics11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Analytics".
cookielawinfo-checkbox-functional11 monthsThe cookie is set by GDPR cookie consent to record the user consent for the cookies in the category "Functional".
cookielawinfo-checkbox-necessary11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookies is used to store the user consent for the cookies in the category "Necessary".
cookielawinfo-checkbox-others11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Other.
cookielawinfo-checkbox-performance11 monthsThis cookie is set by GDPR Cookie Consent plugin. The cookie is used to store the user consent for the cookies in the category "Performance".
viewed_cookie_policy11 monthsThe cookie is set by the GDPR Cookie Consent plugin and is used to store whether or not user has consented to the use of cookies. It does not store any personal data.
Functional
Functional cookies help to perform certain functionalities like sharing the content of the website on social media platforms, collect feedbacks, and other third-party features.
Performance
Performance cookies are used to understand and analyze the key performance indexes of the website which helps in delivering a better user experience for the visitors.
Analytics
Analytical cookies are used to understand how visitors interact with the website. These cookies help provide information on metrics the number of visitors, bounce rate, traffic source, etc.
Advertisement
Advertisement cookies are used to provide visitors with relevant ads and marketing campaigns. These cookies track visitors across websites and collect information to provide customized ads.
Others
Other uncategorized cookies are those that are being analyzed and have not been classified into a category as yet.
SAVE & ACCEPT
Go to mobile version
Verified by MonsterInsights