Metals Shaping the Energy Transition - ETF Trends

Senior ETF Product Manager

The transition to a low carbon economy is well underway, but significant action is still required to meet aggressive policy goals and consumer demand. We are likely in the early stages of this transition, but one thing is undeniable: it won’t be possible without green metals.

Green metals are those metals that are used in the applications, products and processes that enable the energy transition from fossil fuels to cleaner energy sources and technologies. Their applications range from electric vehicles and battery storage to wind turbines and solar panels. A sample of green metals and their use in various applications was summarized well by the World Bank in a recent research report.

Metals Used in Low-Carbon Technologies

Source: World Bank Group; Minerals for Climate Action: The Mineral Intensity of the Clean Energy Transition; 2020.

Demand Drivers for Green Metals in the Energy Transition

Many clean energy sources and associated applications require far more metals inputs than traditional fossil fuel-based equivalents. For example, in addition to steel, a conventional car requires copper and manganese, whereas an electric car requires more copper and more manganese than a conventional car and at least seven additional...

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