The global push for greener energy options is causing a surge in demand for certain metals, according to commodities expert Patricia Mohr. Speaking at the recent Prospectors And Developers Association of Canada (PDAC) conference in Toronto, Mohr shared her insights on the future of metals like copper, uranium, and lithium in the evolving energy landscape.
Copper, a crucial metal in the production of electricity, is expected to see a significant price increase in the coming years. Mohr predicts that the price of copper, currently trading around $4 a pound, will rise above $5 a pound as the world invests in new mines to meet decarbonization goals. The metal is essential for both traditional power stations and renewable energy sources like wind and solar farms, making it a key player in the transition to cleaner energy.
However, the copper market is facing challenges due to operational issues at various mines, including the shutdown of First Quantum’s Cobre mine in Panama. Despite these setbacks, Mohr remains optimistic about the future of copper and believes that the market will see a significant jump in the next year and a half.
On the nuclear energy front, Mohr is bullish on uranium as governments around the world show renewed interest in nuclear power. The clean energy source, which emits minimal greenhouse gases, has seen a price increase from its lows in 2016 to $85 per pound. Mohr predicts that uranium could reach its previous peak of $140 and prove to be a profitable investment in the future.
While lithium prices have seen a decline in the past year, Mohr is starting to become more optimistic about the metal given its lower entry price. She believes that the demand for electric vehicles, which heavily rely on lithium batteries, will eventually pick up and drive the price of lithium back up.
Overall, the shift towards greener energy options is reshaping the metals market and creating new opportunities for investors. As the world moves towards a more sustainable future, metals like copper, uranium, and lithium are expected to play a crucial role in powering the transition. Investing in these metals could prove to be a lucrative move as the global demand for clean energy continues to grow.
