Goldman Sachs says copper demand will soar – and supply is unlikely to keep up. The investment bank has named several metal stocks that it sees as bullish in a copper deficit scenario. Along with the “green transition” driving copper demand skyrocketing, Goldman noted that new supply from approved projects will peak in 2024. Thereafter, no significant copper projects have been identified. planned until 2027 or 2028. Goldman analysts wrote in a September 13 report: “While supply growth looks muted from 2024, demand is likely to accelerate as a push towards a low-carbon economy and growing demand for greens.” Copper is a key component in electric vehicles, used in batteries, wiring, charging points and more. It is also used in batteries to store energy, as well as to generate wind and solar power. Goldman also points to another challenge facing the metal: it is increasingly difficult for companies to obtain environmental and social permits to build and operate new mines. “Due to growing vigilance among environmental and indigenous groups about the potential negative impacts of mining on water, land, biodiversity and emissions, governments are increasingly keeping re/withdraw licenses for mining operations,” the bank wrote. It said that is set to cause a widening deficit in key base metals – including copper – by the middle of the decade. According to Goldman’s analysis, several companies are set to stand out in this landscape. These metal miners, within five years, “hold some of the strongest growth projects that are highly profitable and can dramatically enhance their future cash flow and production.” These include: First Quantum, Teck Resources, Anglo and Oz Minerals. An AS&P Global report from earlier this year also forecasts a surge in demand for the red metal, with copper needed for electric vehicles, wind, solar and batteries set to triple by the middle of the next decade. According to the International Energy Agency, a new copper mine takes 16 years to develop. Goldman in the same report said it has upgraded the Freyr Battery to buy. The bank said the stock is considered a major beneficiary of the recent US Inflation Reduction Act. This act has wide-ranging effects in the renewable energy sector, providing $369 billion in energy security and clean energy delivery. Goldman added that Freyr Battery’s upcoming gigafactory, which is slated to begin production in 2025, could see potential capital spending reduced by around 60% due to the Inflation Reduction Act.