Speakers at Afriforesight’s recent webinar, ‘Cobalt and Copper: African Opportunities’, highlighted the increasing demand for copper and cobalt driven by global economic growth.
Kirthi Ramdhanee, Afriforesight’s chief sustainability engineer, emphasized that copper’s demand surge stems from its pivotal role in electrification, battery technology, renewable energy, and infrastructure development.
She underscored that urbanization in emerging economies and infrastructure modernization in advanced economies are key drivers.
The transition to electric vehicles (EVs) is poised to significantly boost copper demand, given that EVs use up to five times more copper than traditional vehicles.
Ramdhanee noted challenges such as copper theft prompting some regions to explore alternatives like aluminum for certain applications.
Despite these challenges, she warned of an impending copper supply gap by the late 2020s if current mining and recycling rates persist.
Ramdhanee urged increased investment in new mines and expanded operations to meet rising demand, anticipating upward pressure on prices as a result.
Ramdhanee highlighted South America’s dominance in global copper supply but noted that supply constraints there could pave the way for African producers, particularly in the Democratic Republic of Congo (DRC) and Zambia, to gain market share.
Challenges in these regions, like infrastructure limitations, were acknowledged as potential impediments to production scaling.
Cobalt Dynamics and Market Insights:
Hannah Frösler, base and battery metals analyst at Afriforesight, focused on cobalt, highlighting its critical role in lithium-ion batteries used in EVs and electronics.
While EV adoption is expected to drive demand, efforts to replace cobalt in batteries with more sustainable materials could temper long-term growth.
Frösler noted that despite the Democratic Republic of Congo (DRC) supplying the majority of global cobalt, challenges like social issues and logistical constraints pose supply risks.
She anticipated downward pressure on cobalt prices in the near term due to weak EV demand growth and increased supply from the DRC and Indonesia.
Both speakers agreed that while demand for copper and cobalt is poised for growth, challenges such as supply constraints and ethical considerations in mining operations could influence future market dynamics.
The outlook remains positive, contingent on sustainable practices and strategic investments in mining infrastructure.
