Discovery,supply and demand: From Metals of Antiquity to critical metals †

Abstract

Transformational growth amongst the various critical metals’ markets would reduce supply concerns for industrial consumers and governments, whilst also providing commercial opportunities for the upstream industry. However, despite rapid market growth amongst some critical metal markets over the last decade, as a group they have lagged the market growth rates of the non-ferrous industrial and precious metals sectors. Research into the growth prospects of the critical metal markets is clearly required; however, their limited economic history and a paucity of data make this difficult. The economic history of the metals and mining industry as a whole, however, is better documented, and thus may provide insights into the potential for market growth amongst the critical metals. This paper therefore reviews the economic history of metals and mining, and in particular, that of the aluminium, nickel and uranium industries in an attempt to understand the key drivers behind transformational growth within the metals’ markets. This historical review suggests that a combination of breakthroughs in discovery, supply and demand are required to catalyse transformational market growth; and thus that parties seeking to benefit from the transformational growth of the critical metals’ markets must approach these markets in an integrated manner, considering each of the discovery, supply and demand issues in turn, rather than focusing on one specific constraint.