Analysts expect global shortage of precious metals in years to come – by Eugene Gerden (Resource World – July 22, 2021)

https://resourceworld.com/

The increase of demand for clean energy sources and the ever growing popularity of electric vehicles and energy storage systems in the world may lead to a shortage of metals in the global market followed by a sharp increase in prices for them in years to come, according to recent statements, made by producers and analysts in the field of mining.

According to recent estimates of the International Energy Agency (IEA), the demand for lithium will grow more than 40 times by 2040, while for cobalt and nickel by 20 times within the next two decades. The same situation is expected to be observed in the case of other precious metals.

Igor Sechin, Chief Executive Officer of Rosneft, Russia’s largest state-owned oil producer, believes such as growth of demand may lead to the shortage of this and other metals in the global market, as the current investments in their exploration and development remains insufficient to ensure their stable supplies to global market.

Igor Sechin comments: “Under these conditions, we expect an explosive rise in prices for some metals. The increase of global prices for lithium and nickel will offset the expected decrease of the costs of battery production, which were initially expected by some analysts.”

Sechin recalled that the production of almost 80% of ores, which are used for the production of high valued metals is monopolized or located in unstable regions.

For the rest of this article: https://resourceworld.com/analysts-expect-global-shortage-of-precious-metals-in-years-to-come/