The Great Metal Crunch: Exploring the Consequences of Demand Exceeding Supply – Part 1/4

What will happen when the demand for raw materials needed for the green energy transition exceeds supply?

Rising Prices will force a reality check on our ambitions: As demand outstrips supply, the scarcity of metals will lead to a significant increase in prices. Rising metal prices will balance the market or trigger a push for alternative technologies. Higher prices, however, can have far-reaching implications for industries that rely heavily on metals, such as automotive, electronics, and renewable energy sectors. This, in turn, can result in increased costs for consumers and potential supply chain disruptions.

The scarcity of metals will necessitate greater international cooperation and the establishment of regulations to ensure fair distribution and responsible mining practices. Governments and international organizations will likely collaborate to address supply chain challenges, encourage recycling, and promote sustainable mining practices to mitigate the impact of metal scarcity.

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