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