1、December 2023Corporate Credit Analyst Alexandra Symeonidi,CFA In the two years since we published our research on electric vehicles (EVs)and metals,weve seen a dynamic metals market unfold before our eyes.The copper,lithium,and nickel markets are undergoing a rapid transformation,driven by the green

2、 energy revolution,which has spurred investments and innovation to meet the growing demand of EVs and renewable energy.In this paper,we explore how supply and demand for some of these“commodities of the future”have been shaped by the transition to a low-carbon future.We also explore governmental res

3、ponses from emerging markets(EMs)to these shifting dynamics.Metals of the Future 2.0:How the Energy Transition Is Transforming the Metals MarketsEMERGING MARKETS DEBT Investment Management 2|METALS OF THE FUTURE 2.0:HOW THE ENERGY TRANSITION IS TRANSFORMING THE METALS MARKETDemand DynamicsThe energy

4、 transition from traditional fossil fuels to renewable resources,as well as the electrification of several global economic sectors,is now evident in the demand for copper,lithium,and nickel.Investments in electric grids worldwide have accelerated in the last couple of years as a result of investment

5、s in renewable power systems and the infrastructure needed to support the electrification of transportation and other sectors.CopperAccording to the International Energy Agency(IEA),global investment in electricity grids increased around 8%in 2022.China has led this growth,with investments in grid a

6、nd infrastructure up 28%year-over-year from January to October 2023.Chinese demand for copper now constitutes 60%of the world total.While demand for all copper uses is higher than historical records,demand for wire,which has multiple uses in the grid and EV infrastructure,has significantly outperfor