The energy transition is in full swing, with electric vehicles supplanting gas guzzlers and solar panels and wind turbines replacing coal and oil as the world’s leading energy sources. The energy transition is driving the next commodity supercycle, with immense prospects for metals producers, technology manufacturers, and energy traders and investors.
Indeed, new energy research provider BloombergNEF estimates that the global transition will require ~$173 trillion in energy supply and infrastructure investment over the next three decades, with renewable energy expected to provide 85% of our energy needs by 2050.
For instance, BNEF projects that by 2030, consumption of lithium and nickel by the battery sector will be at least 5x current levels. Meanwhile, demand for cobalt, used in many battery types, will jump by about 70%. Diverse EV and battery commodities such as copper, manganese, iron, phosphorus, and graphite—all of which are needed in clean energy technologies and are required to expand electricity grids—will see sharp spikes in demand.
There’s a big negative for the fossil fuel sector—BNEF has forecast that electric and fuel cell vehicles will displace 21 million barrels per day in oil demand by 2050.
Source: Bloomberg
Here are the long-term outlooks for key commodities and clean energy sectors as per BNEF.
#1. Solar Panels
KEY METALS AND MATERIALS: Steel, Aluminum, Polysilicon, Copper, Silver
TOP ETF: Invesco Solar Portfolio ETF (NYSEARCA:TAN)
BNEF estimates that...
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