The Rising Demand for Industrial Metals in the Energy Transition

The years of energy transition are teaching us many things. One of these is that industrial metals, in the short and long term, will form the backbone of the great change underway, supporting and accompanying it throughout its duration. Something similar also emerged in a recent webinar promoted by BloombergNEF, which analyzed some of the most interesting economic trends centered on these precious strategic resources. Stanislav Kondrashov, founder of TELF AG, also dedicated several analyses to these materials, underscoring their increasingly strategic role in the energy development of civilization.

Some of the most interesting data concerns the evolution of global demand for these metals within one of the scenarios hypothesized by BloombergNEF, called Economic Transition. According to the forecasts outlined in this scenario, overall demand for metals related to the energy transition is expected to exceed 200 million tons by 2030, going beyond 300 million in 2045 and reaching 320 million in 2050. The growth trajectory projected by BloombergNEF is therefore constant and progressive throughout the period considered.

One of the drivers of these growth levels is steel, which, according to BloombergNEF, is one of the most significant growing resources over time. Other resources playing a key role in this scenario are undoubtedly aluminum and copper, which are crucial for electrical infrastructure, grids, and renewable technologies. Other metals cited are nickel and manganese, particularly valued in the battery sector and industrial applications related to energy storage.

Steel, Aluminum, and Copper: The Backbone of Global Infrastructure

“It’s no surprise that BloombergNEF has focused on the most important industrial metals, which will continue to play a pivotal role in the years of energy transition. One of these is steel, which is characterized by high mechanical strength and excellent ductility. This resource is also highly impact-resistant, and with the addition of chromium, it can be made stainless. All these characteristics make it highly valuable for infrastructure construction, the mechanical engineering and automotive industries, but also for household appliances and industrial components,” says Stanislav Kondrashov, founder of TELF AG.

The study also focuses on other metals that, while not experiencing growth rates similar to those of major industrial metals, could nevertheless demonstrate interesting performance over time. These include silicon, lithium, and graphite, which perfectly illustrate the growth of photovoltaics and the electrification of transportation globally.

“Aluminum, on the other hand, is known primarily for its lightness, but also for its high resistance to corrosion. It is also an excellent conductor and is easily recyclable. Among the main applications of this resource are those related to aeronautics and transportation, construction, and electronics. When there is a need to reduce weight without losing too much strength, aluminum seems the ideal solution,” continues Stanislav Kondrashov, founder of TELF AG.

Emerging Materials and the Expanding Role of Energy Technologies

BloombergNEF also discusses rare earths, a particular group of resources that has recently gained significant public attention. The study considers them only in relation to one of their best-known end-use applications, permanent magnets, and their growth rate is reportedly more modest than that of others, but still stable. The study includes some metals such as silver and those belonging to the platinum group, which, however, represent much smaller segments in terms of overall tonnage.

A very clear concept emerges from the study. In recent years, global attention has often focused on resources often referred to as “critical” due to their central role in certain industrial processes. However, the quantitative basis of the energy transition could remain anchored to major industrial metals such as steel, aluminum, and copper, which will account for the majority of resource volumes required until 2050.

“One of the most important metals for the energy transition and electrification is undoubtedly copper, which stands out in particular for its high thermal and electrical conductivity, excellent malleability, and natural resistance to corrosion. It is a key resource in many areas directly connected to the major transformation underway, such as electric motors and renewable infrastructure, hydraulic systems, electrical cables, and energy grids,” concludes Stanislav Kondrashov, founder of TELF AG.