Sustainability, Energy Transition, ESG | Weekly Thematic

A Salt For A Battery – Who Gets Charged? We need (a) Copper
June 29, 2022
Commodities Mentioned:
Companies Mentioned:
Tesla, VW, BMW, FREYR Battery, Britishvolt, Toyota, Lotte Chemical, Cirba Solutions, Umicore, Freeport McMoran, Southern Copper, Vale, Glencore, BHP, Eastman, PTTGC, Oxy Low Carbo Ventures, Manulife, Freeport LNG, Air Liquide, Siemens Energy

C-MACC Weekly “CRETER” (Climate etc.)

A Salt For A Battery – Who Gets Charged? We need (a) Copper

  • Most believe battery demand will increase quickly, but outlooks significantly vary as to how fast – the low end of the range is challenging, the top end unreal.
  • Margin risk is high through the chain, especially if investments follow overly optimistic growth assumptions – stretching supply chains – we would buy metals.
  • EV markets will eventually mature to share similarities with regular autos. Batteries will look like gasoline – plentiful/fungible (normally) – but not for years.
  • Batteries are unique, while other auto components will remain, adjust or be discarded. The emergence of TaaS – eventually – will lead to standardization.
  • Otherwise, we look at the need for an Ag policy, high recycling and DAC costs, more challenges in power generation, risk-averse ESG money, and hydrogen.

See PDF below for all charts, tables and diagrams

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