Demand is Soaring For Nickel, Copper, Cobalt and Supply Can't Keep Up

A recent interview with Frank Bassa, CEO of Kagus, a Canadian junior mining company, has shed light on the critical supply shortages facing the global market for key battery metals: nickel, copper, and cobalt. As the world accelerates its transition to a green economy, the demand for these metals is skyrocketing, while supply chains struggle to keep pace.

Bassa emphasized the stark reality of a looming supply deficit, citing a Wood Mackenzie study predicting an 85% shortfall in nickel supply by 2030. This shortfall is exacerbated by the complex and time-consuming process of mine development and the limited processing capacity for these metals.

“There is not enough nickel around,” Bassa stated bluntly. “It’s not just about finding the resource, but also about developing it and then finding a place to process it.”

Copper, another critical metal for the electrification of the global economy, is also facing significant supply challenges. Bassa highlighted the closure of a major copper mine in Panama as a prime example of the sudden supply shocks the market can experience.

“Copper is required for all forms of electrification,” said Bassa. “From generating stations to charging stations, copper is indispensable. The challenge lies in the time it takes to bring new mines online.”

Cobalt, often overlooked but equally critical for the battery industry, was another focus of the interview. Bassa emphasized the importance of ethical sourcing and the complex challenges associated with mining in regions like the Democratic Republic of Congo. Kagus' unique approach to responsible mining, which involves community development and environmental protection, is a potential game-changer in this sector.

Key Takeaways:

• Critical shortages are looming for nickel, copper, and cobalt due to surging demand from the green economy.
• The complex and time-consuming process of mine development is exacerbating supply constraints.
• Ethical sourcing of cobalt is a major challenge, but companies like Kagus are developing innovative solutions.
• Vertical integration and value-added processing are essential to address supply chain bottlenecks.

Bassa's insights underscore the urgent need for investment in mining exploration and development to meet the growing demand for these critical minerals. As the world transitions to a low-carbon future, securing a stable supply of nickel, copper, and cobalt will be essential for ensuring the success of the green economy.

The mining industry faces a pivotal moment. With careful planning and investment, it has the potential to meet the challenges of the future and contribute significantly to a sustainable world.

Source: Commodity Culture