A Supercycle Like No Other

A Supercycle Like No Other

Is there going to be a supercycle? We think so, but I'm pretty sure it will be different from any of the others we've seen before. First off, this will be the first commodities supercycle in history where hydrocarbons aren't fuelling the boom. That's not to say that oil, gas, and coal won't play an important role in the energy mix; the global economy will rely on them for years to come. Instead, this time, it will be the metals critical to the energy transition that will electrify the markets. Secondly, uniquely the upcoming period of supercharged growth has been clearly signposted well in advance. With such forewarning, the mining sector now has the opportunity to act pre-emptively to achieve a more sustainable long-run market dynamic. To not act now will leave the sector at risk of yet another post-boom hangover as the cycles that have plagued the sector since time immemorial play out again. Fossil fuels to lose out What is our justification for supporting a supercycle narrative? Well, fundamentally, Wood Mackenzie believes that US$50 trillion of investment will be needed over the next three decades to achieve a 1. 5ËšC global warming trajectory. This will electrify societies' infrastructure