As the U.S. and Europe move towards more electricity use in transportation and energy, copper will rise in demand even as supply crunches remain, said Nicole Adshead-Bell, Director at Cupel Advisory.
"Copper is the key industrial metal," she said. "[But] there is a paucity of new discoveries, and there's a paucity of material supply."
Bloomberg projects a 50 percent rise in demand for copper by 2040, largely due to transportation needs.
"Copper is heavily used in batters in cars," Adshead-Bell explained. "The increase in copper use from an ICE vehicle to an electric vehicle is from 100 pounds to 400 pounds. "
Adshead-Bell spoke with David Lin, Anchor and Producer at Kitco News at the Precious Metals Summit in Beaver Creek.
Fossil Fuels and Electrification
Despite the rising trend of electrification such as EVs (electric vehicles), Adshead-Bell said that there has been too much haste to reduce fossil fuel consumption.
"Given that [California] has got energy issues and lack of a secure supply, [the governor] asked owners of EV vehicles not to charge their cars," she said. "What the environmental movement has done, and what a lot of the ESG elements have done, is to increase the cost of living."
Adshead-Bell claimed that "the environmental lobby" has successfully campaigned for policies that have "resulted in a lack of security and supply in key commodities," driving up the costs of raw materials.
She added that, "the average person out there has no idea where their stuff comes from, they don't like mining… and so governments are willing to say palatable phrases, but less willing to facilitate a change."
However, she pointed to "some very good ESG organizations, like Digbee, that understand how mining works.”
"Pan Global Resources is a World Class Copper Discovery" - Sherman Dahl
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