McKinsey’s 2024 Global Materials Perspective ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌   ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

DELIVERING ACTIONABLE INSIGHTS ON THE DAY’S NEWS Brought to you by Alex Panas, global leader of industries, & Axel Karlsson, global leader of functional practices and growth platforms Welcome to the latest edition of Only McKinsey Perspectives. We hope you find our insights useful. Let us know what you think at Alex_Panas@McKinsey.com and Axel_Karlsson@McKinsey.com. —Alex and Axel Materials for a net-zero future In the news • The copper crisis. To run cars, factories, and heating units on electricity instead of fossil fuels will require a substantial amount of copper, a journalist reports in WIRED. Over the next quarter century, the demand for copper is predicted to exceed the quantity that people have used throughout history. Experts believe that copper could be undersupplied by millions of tons in the years ahead. As the metal’s price continues to rise, copper theft is a growing problem around the world that threatens not only the livelihoods but also the lives of those in the copper business. [WIRED] • Europe’s new lithium mines. An essential component of electric-car batteries, lithium plays a vital role in reducing carbon emissions—and in Europe’s car market, the Wall Street Journal reports. Nearly all the lithium the region uses is currently sourced from a single country in Asia. But with EU demand for battery electric vehicles expected to rise threefold over the next decade, the region is investing in local supply of the critical metal. In the coming years, several new lithium mines are expected to open throughout Europe. [WSJ] To scale up the supply of key materials so it meets expected demand, as much as $5.4 trillion in capital expenditures and 270 gigawatts of power are needed. On McKinsey.com • The next phase for materials. The global metals and mining industry is entering a new era, explain McKinsey senior partners Karel Eloot and Michel Van Hoey and their coauthors. While about 80% of the industry’s revenues come from just five materials (steel, coal, gold, copper, and aluminum), the energy transition is quickly changing the materials landscape. An affordable and sufficient supply of materials such as copper, uranium, and lithium is crucial to decarbonizing the global energy system.  • Scaling supply. Supply is ramping up faster than expected for several critical materials—though the overall picture is mixed. In 2023, lithium and nickel production was nearly 20% greater than earlier forecasts, based on Metal&MineSpans’ projections from the first quarter of 2020. On the other hand, actual copper supply in 2023 lagged behind 2020 projections. Discover three ways that the materials landscape is changing, and visit the “McKinsey at COP29” page to see the highlights from our agenda. Read the full report —Edited by Belinda Yu, editor, Atlanta Was this forwarded to you? Sign up here. Or send us feedback—we’d love to hear from you. Follow our thinking McKinsey Insights - Get our latest thinking on your iPhone, iPad, or Android. Copyright © 2024 | McKinsey & Company, 3 World Trade Center, 175 Greenwich Street, New York, NY 10007