There have been numerous reports about the increasing demand for copper, lithium, cobalt and other metals in the coming years. This week, Glencore chief executive Ivan Glasenberg added to that speculation when he said that a supply gap was growing in the metals necessary for the world to replace fossil fuels with renewable energy, but he stopped short of predicting a so-called super cycle.

At the Qatar Economic Forum, Glasenberg said that copper supplies needed to increase by 1 Mt/a (1 million stpy) until 2050 to meet an expected demand of 60 Mt (66 million st).

“Today, the world consumes 30 Mt/a (33 million stpy) of copper and by the year 2050, following this trajectory, we’ve got to produce 60 Mt/a (66 million stpy) of copper,” he said.

“If you look at the historical past 10 years, we’ve only added 500 kt/a (550,000 stpy) ... Do we have the projects? I don’t think so. I think it will be extremely difficult.”

Reuters reported that shares of many mining companies have doubled in the past year, as policy support measures in advanced economies in response to the COVID-19 pandemic stoked inflation.

Commodities serve as a hedge against inflation, meaning their prices are expected to stay strong.

At the same time, the transition to a low-carbon economy and channeling of stimulus funds into infrastructure is generating demand for raw materials.

Demand for copper is rising for use in renewable energy projects and electric vehicles. Prices hit a record high above $10,000/t in May, before falling about $1,500/t.

The nickel and cobalt markets are facing similar supply deficits over the next few decades. Glasenberg said nickel supplies needed to grow by an extra 250 kt/a (275,000 stpy) compared with a historic rate of just 100 kt (110,000 st).

He projected annual nickel demand to rise to 9.2 Mt (10.1 million st) from the current 2.5 Mt (2.75 million st).