The future of energy will be determined by a tale of two metals: Nickel and Copper – David Fickling

In a pivotal challenge for BHP Group Ltd., the world's largest miner, the demand surge for clean-tech minerals exposes a critical bottleneck in the energy transition. Nickel and copper, essential for electric vehicles and renewable energy infrastructure, face a supply deficit. Despite BHP's dominance in copper production, its strategies fall short of addressing the impending shortfall. The $2.5 billion impairment on an Australian nickel business underscores the unforeseen impact of Chinese battery-grade nickel flooding the market. As the global copper market faces a substantial shortfall, BHP's current spending guidance falls significantly short of the $250 billion required for growth by 2030, jeopardising the transition to net zero. The company's limited options to address copper supply constraints raise concerns about the industry's ability to support decarbonisation efforts, potentially impeding progress towards a zero-emission future.

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By David Fickling

The world's biggest miner BHP Group Ltd. grew powerful by building dominant positions in producing the minerals of the future. That makes the challenges it's facing with two key clean-tech ingredients a sobering lesson for the energy transition.

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