The electrification of the economy will rapidly transform the modes of transportation; the need for electric vehicles will bring higher demand for both copper and lithium, the latter of which is used in batteries.
Gianni Kovacevic, director of CopperBank, that the copper price, currently at $4.43 a pound, is going to grow to over $6 a pound, or what he calls the “inflation-adjusted all-time high.”
With the growth of copper demand comes the growth of lithium in equal if not greater rates.
“I’ve already submitted that [lithium demand] is going to grow by 1,000%. You’re going to see lithium growing by 10%, 11%, 12%, 15% in certain parts of this pivot over the next decade. It is going to be a tremendous growth commodity. People want to have allocation to lithium,” Kovacevic told David Lin, anchor for Kitco News.
Kovacevic said that “we are in the nascent stages of the second pulse of a multi-pulse bull market. The first pulse happened last year.”
For learn more about the fundamentals of copper and lithium, watch the video above.
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