A transition to renewable sources of energy will prompt a surge in demand for base metals in the coming years, Wood Mackenzie has predicted.
In a report published Monday, analysts at the energy consultancy said that as governments fulfil commitments to limit global warming, a growing reliance on solar power would boost demand for several non-ferrous metals.
Three metals in particular were named by Wood Mackenzie as commodities to watch: aluminum, copper and zinc.
The report’s authors outlined three possible scenarios for the metals, with demand growth for each depending on the success of international efforts to limit global warming.
Under the Paris Agreement — a landmark deal adopted in 2015 and signed by 196 countries— nations agreed to a framework to prevent global temperatures from rising by any more than 2 degrees Celsius compared to pre-industrial levels, although the treaty aims to prevent global temperature rises exceeding 1.5 degrees Celsius.
Aluminum
Wood Mackenzie’s base case scenario assumes that by the end of the century, temperatures will have risen by 2.8 to 3 degrees Celsius from pre-industrial times.
In this situation, aluminum demand from the solar power sector would rise from 2.4 million tons in 2020 to 4.6 million tons in 2040.
Typically, aluminum is used in solar panel frames and their structural parts, Kamil Wlazly, a senior research analyst at Wood Mackenzie, noted.
If the global temperature rise was kept between 1.5 and 2 degrees Celsius, however, it would mean that aluminum demand for solar power had reached between 8.5 million tons and 10 million tons a year by 2040, the analysts said.
In the most optimistic climate scenario, where renewable sources of energy were embraced more readily to cap warming at 1.5 degrees Celsius, demand from the solar sector would account for 12.6% of total global aluminum consumption by 2040 — up from 3% in 2020.
Copper
Demand for copper — used in high and low voltage transmission cables and thermal solar collectors — is also set for “notable gains” as solar energy becomes more mainstream, Wood Mackenzie said.
The report’s base case scenario predicted that demand for copper arising from solar power generation would rise from 0.4 million tons in 2020 to 0.7 million tons a year by 2040.
Copper consumption in the solar sector would increase to 1.3 million tons by 2040 if global warming was capped at 2 degrees Celsius.
If temperature rises could be limited to 1.5 degrees Celsius, the industry’s consumption of the red metal was expected to jump to 1.6 million tons a year within the next two decades, the report claimed.
Zinc
Meanwhile, analysts noted that only zinc coatings could offer cheap, long-lasting corrosion protection, with the metal used in solar panels’ structural parts.
Currently, solar power installations account for around 0.4 million tons of annual global zinc consumption, Wood Mackenzie said.
If global temperatures were on track to rise by 2.8 to 3 degrees Celsius by the end of this century, this number was projected to grow to 0.8 million tons by 2040.
With temperature rises limited to 2 degrees Celsius, zinc consumption would increase to 1.7 million tons a year by 2040. If warming was successfully limited to 1.5 degrees Celsius, zinc consumption in the solar sector would rise to 2.1 million tons a year by 2040, analysts predicted.
Wood Mackenzie’s predictions for the three metals were only around demand coming from the solar power industry, and did not speculate on total global demand.
Wlazly pointed out in Wood Mackenzie’s note on Monday that falling production costs and efficiency gains had lowered the price of solar power around the world.
“As a result, solar has become cheaper than any other technology in many parts of the U.S. and several other countries across the globe,” he said. “As costs continue to fall, solar’s share of power supply will rise and begin to displace other forms of generation. This presents a huge opportunity for the base metals sector.”
In the Electrek Podcast, we discuss the most popular news in the world of sustainable transport and energy. In this week’s episode, we discuss the new Tesla Model S/X “refresh”, robotaxi service is coming, a new EV price war in China, and more.
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Kia’s electric SUV has already become a hit in several overseas markets. The EV5 is now arriving as the first electric Kia to be assembled in Singapore, as it rolls out to new global markets.
Kia EV5 arrives as its first locally made EV in Singapore
Shortly after its introduction at the 2023 Chengdu Motor Show, Kia launched the EV5 in China, with prices starting at about 20,000 (149,800 yuan).
Kia is now seeing a full-on recovery in China, largely thanks to the new electric SUV. Its joint venture partner in China, Yueda Kia, ranked first in sales growth among JV brands.
In China, Kia sold over 248,000 vehicles last year, the first time it has crossed the 200,000 mark since 2020. The EV5 is made at Yueda Kia’s manufacturing plant in China and exported to overseas markets like Australia and Thailand.
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In fact, the EV5 is currently the fourth best-selling EV in Australia this year through April, ahead of every BYD vehicle.
The EV5 is slightly smaller than the Tesla Model Y at 4,615 mm in length, 1,875 mm in width, and 1,715 mm in height.
Kia EV5 (Source: Kia Singapore)
After launching the EV5 in Singapore on May 28, Kia hit a milestone. The electric SUV arrives as Kia’s first locally assembled EV in the region.
The EV5 was officially launched during an event at Hyundai Motor Innovation Groupe Centre Singapore, where it will be made. It will join other Hyundai Motor electric cars, including the IONIQ 5 and IONIQ 6. Hyundai also builds the IONIQ 5 robotaxi here and exports it to the US.
Kia EV5 (Source: Kia)
Kia’s distributor, Cycle and Carriage, will sell the EV5 in three variants: Air, Earth, and a sporty GT-line. Two battery sizes will be available, 64.2 kWh and 88.1 kWh, providing range of 400 km and 540 km, respectively.
Prices for the base Air trim start at $194,000 (SDG), including COE. The Earth and GT-Line models start at $210,500 (SDG) and $260,000 (SDG) with COE.
Kia EV5 interior (Source: Kia)
Later this year, Kia will launch the global version of the EV5, which will be made at its Autoland Gwangju manufacturing plant in South Korea. It will be sold in overseas markets, including Europe and Canada, but not the US.
Kia confirmed the EV5 will be “exclusively for the Canadian market” in North America. It will be available in FWD and AWD powertrains. Two battery sizes will be offered: 60.3 kWh or 81.4 kWh, providing a range of up to 500 km (310 miles).
Do we smell a three-peat? The team at Ford Performance is once again competing at the annual Pikes Peak International Hill Climb, and this year is bringing a “Super” version of the all-electric Mustang Mach-E… At least we think there’s a Mach-E in there somewhere.
Pikes Peak—the “Race to the Clouds.” This annual event spanning 12.42 miles to an elevation of over 14,000 feet in the mountains above Colorado has been celebrated for over 100 years. While its hill climb is rooted in tradition and traditional vehicles, it has become an annual opportunity for EV engineers to showcase how much better all-electric models can be.
Last year, Rivian, Hyundai, and Ford Performance all impressed, with the former two automakers snagging records for their vehicle types, while Ford’s “F-150 Supertruck” took the “King of the Mountain” crown for the fastest climb of the day.
This past January, we learned that Ford Performance planned to defend its title at Pikes Peak with its third all-electric demonstrator in as many years. At the time, we only saw a sheeted vehicle that appeared to be relatively low with a massive spoiler, but the glowing front emblem left no doubt that it was a modified version of the Mustang Mach-E.
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Today, Ford Performance unveiled the BEV it will use to climb Pikes Peak, which it is calling the Super Mustang Mach-E. Have a gander.
Source: @FordPerformance/Instagram
Super Mach-E will try to hold Ford’s Pikes Peak crown
Ford Performance shared the images seen above in an Instagram post with the following caption:
12 miles of mountain road. 156 turns. 14,115 feet of elevation. This is the @pikespeakhillclimb, and we’re bringing 6,125 lbs of downforce — and @romaindumas_official — to take it on with the Super Mustang Mach-E.
From the post, we’ve learned the Super Mustang Mach-E will be driven up Pikes Peak by none other than veteran French racer Romain Dumas. Dumas has a wealth of experience in some of the world’s largest (and longest) races, including the 24 Hours of Le Mans, Nürburgring 24 Hours, and the 24 Hours of Daytona.
He has been contracted to Ford Performance since 2022 and has won two of his five Hill Climb victories with the American automaker in the past two years (although the 2023 SuperVan victory was in the division and second overall). Could Dumas tally his sixth career victory at Pike Peak with a three-peat with Ford in the Super Mustang Mach-E?
Ford Performance and Romain Dumas have shown they can do it, so it’s a serious possibility. We will find out on June 22, 2025, when the 103rd running of the Pikes Peak International Hill Climb takes place.
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