Copper and nickel demand will skyrocket in the next 30 years; BHP.

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A BHP Group (NYSE: BHP) executive warned on Wednesday that a decarbonized world will require four times the nickel and double the copper in the next 30 years.

“Some of the modelling that we have done showed that in, let’s say a decarbonized world … the world will need almost double the copper in the next 30 years than in the past 30,” said Vandita Pant, BHP’s Chief Commercial Officer, at the FT Commodities Asia Summit.

“And for a commodity like nickel, that quadruples. So four times nickel needed for the next 30 years than the past 30 years and all to be done as sustainably as possible,” Pant added. As a result of the shift away from fossil fuels, nickel and copper are expected to see increased demand.

Nickel is utilised in the batteries of electric vehicles (EVs), while copper is used in the wiring of EVs, charging stations, and other renewable energy infrastructure. Trafigura’s CEO cautioned on Tuesday that rising global demand for copper, nickel, and cobalt might result in large shortages.

Clients will increasingly demand traceability and sustainability, according to BHP’s Pant, who also mentioned that the business has collaborated with Tesla (NASDAQ: TSLA) on a blockchain traceability programme to track carbon emissions from its Western Australian nickel mine asset.

She also mentioned that BHP had shipped its first carbon-neutral copper cargo from Chile to the United States, which she described as “the way to go.”

Story by : Norvisi Mawunyegah