1. Metals see a massive boost in EVs
- Robert Friedland has started a special purpose acquisition company (SPAC) called Ivanhoe Capital Acquisition Corp. aimed at investing $200 million in the energy transition.
- “The global shift away from carbon, boosted by ostensible Chinese environmental concerns as well as Biden’s recent win, is driving capital to sectors involved with or likely to benefit from the focus on green or renewable resources,” said Tai Wong, head of metal derivatives trading at BMO Capital Markets. “This focus is likely to improve supply over time.”
- Demand for a variety of metals used in batteries needed for electric vehicles is expected to surge.
- Demand for nickel and aluminum will rise 14-fold between 2019 and 2030.
- Copper prices have already skyrocketed this year, but demand will rise 10-fold over the next decade.
2. China’s power demand stretches the grid
- China’s economy has rebounded strongly from the pandemic, and industrial demand, in particular, is robust.
- Demand for electricity is creating shortages, forcing cutbacks on power delivered to major industrial consumers.
- Electricity demand in China was up 9.4% in November, year-on-year. At the same time, an unusually cold winter has led to a spike in demand for heating.
- Local coal futures have shot up, as has the cost of natural gas.
- The power crunch “will probably…