PwC: Strategic metal scarcity seen worsening

Global – Global manufacturers may face a critical shortage of 14 raw materials over the next five years affecting industries including chemicals, aviation and renewable energy, according to PricewaterhouseCoopers LLP.

Seven manufacturing industries may be seriously affected by a critical shortage of raw materials ‘which could disrupt entire supply chains and economies,’ PwC said in a report today based on a survey of senior executives from 69 manufacturers.

‘Many businesses now recognize that we are living beyond the planet’s means,’ Malcolm Preston, PwC’s global sustainability leader, said in the report. ‘New business models will be fundamental to the ability to respond appropriately to the risks and opportunities posed by the scarcity of minerals and metals.’ Beryllium, used as a lightweight component in military equipment, cobalt, used in industrial manufacturing and lithium, used in wind turbines and hybrid cars, were among minerals identified in the report as facing critical shortages. Tantalum and flurospar will also face a shortfall, it said. Publication of the report comes several weeks after China’s biggest producer of rare earths suspended production for one month in order to stimulate the market.

Baotou Steel Rare-Earth Hi-Tech said it hoped to boost the price of the minerals, used in items such as TVs and mobile phones.

Hans Schoolderman of PwC Netherlands, added: ‘The world’s growing population, an increase in GDP levels and changing lifestyles are causing consumption levels to rise globally – creating a higher and higher demand for resources.’