Just five materials—steel (including iron ore and metallurgical coal), thermal coal (the type used in power plants to make electricity), gold, copper, and aluminum—account for 80 percent of revenues in the metals and mining sector. In McKinsey’s annual Global Materials Perspective, senior partner Michel Van Hoey and colleagues find that battery and magnet materials remain small in terms of revenue but are growing along with the shift toward low-carbon technologies.
Image description:
A treemap displays the share of the $4 trillion total market revenue generated by different metals and mining materials in 2023. Five materials account for approximately 80% of the market: steel (including iron ore and metallurgical coal) at about 35%, thermal coal at about 30%, and gold, copper, and aluminum, with a combined share of about 15%. The remaining roughly 20% of revenue comes from other materials at about 15%, with ferrochrome and potash being the largest in this category, and battery materials at about 5%. The battery materials category comprises nickel, lithium, manganese, cobalt, and graphite, in descending order of revenue share. Source: American Chemistry Council; Eurostat; Fastmarkets; IHS Markit; ITC Trade Map; World Bank; McKinsey Metal&MineSpans.
End of image description.
To read the report, see “Global Materials Perspective 2024,” September 17, 2024.