Afriforesight’s recent webinar on ‘Cobalt and Copper: African Opportunities’ shed light on the increasing demand for copper and cobalt in the global market. During the discussion, experts highlighted the key drivers behind the surge in demand for these minerals and the implications for supply and prices.
Chief sustainability engineer Kirthi Ramdhanee emphasized the growing demand for copper due to its crucial role in electrification, battery technology, renewable energy, and water infrastructure projects. With the urbanization of emerging economies and the shift towards green energy sources, the demand for copper is expected to rise significantly. The transition to electric vehicles is also a major factor driving copper demand, as EVs require a substantial amount of copper for batteries and electric motors.
However, the supply of copper is facing challenges, with a potential deficit looming in the late 2020s. Ramdhanee urged miners to ramp up production to meet the growing demand and emphasized the need for new mining projects and expansions.
On the other hand, base and battery metals analyst Hannah Frösler highlighted the importance of cobalt in the battery sector, particularly in lithium-ion batteries used in EVs and electronic devices. Despite the high demand for cobalt, efforts are being made to replace it with more sustainable materials to address ethical and environmental concerns.
The webinar also discussed the potential for African countries like the Democratic Republic of Congo and Zambia to increase their copper production and gain market share. While challenges such as power supply disruptions and logistical constraints exist, the growing demand for these minerals presents opportunities for African suppliers.
Overall, the outlook for copper and cobalt prices remains positive, with increasing demand and limited supply expected to drive prices up in the coming years. As the world moves towards cleaner energy sources and electric vehicles, the demand for these minerals is only expected to grow, presenting opportunities for both producers and investors in the sector.
