The metals and mining sector may not be the most exciting group of assets at the moment, but that could change in the coming years.

The increasing demand for mining commodities has been driven by the global efforts for green energy. S&P Global suspects that supply constraints will send metals to above-average prices through 2025.

The World Steel Association reported that every metric ton of steel produced in 2020 emitted 1.8 tons of carbon dioxide into the atmosphere. It’s a staggering statistic because it means that every metric ton of steel produced emitted almost double its weight in byproduct.

The global demand for a smaller carbon footprint has pressured companies that mine and process metals into pursuing innovation.

For example, Swedish metals manufacturer SSAB in collaboration with LKAB minerals and state-owned power company Vattenfall are the first in the world to produce ‘green’ or fossil-free steel. This is done using a process called HYBRIT (Hydrogen Breakthrough Ironmaking Technology) which burns hydrogen created by renewable energy to produce electricity that is used to create the steel.

Also Read: Thanks To Rise In Copper Prices, The Penny Is Worth More Than 1 Cent: Here's How Much

The demand for lithium, a primary element in the production of batteries, is expected to grow to $6.62 billion by 2028 largely due to the booming growth of the electric vehicle industry.

Rare earth metals used in EV batteries, computers, fiber optics, and superconductors have also seen increasing demand. The market is expected to grow to $9.6 billion by 2026, up from $5.3 billion in 2021.

Here are some of the stocks an investor should consider amid the high global demand for metals.

Lithium

• Alcoa Corp (NYSE:AA)
• Albemarle Corporation (NYSE:ALB)
• Livent Corp (NYSE:LTHM)
• Lithium Americas Corp (NYSE:LAC)
• Standard Lithium Ltd (NYSE:SLI)
• Sociedad Quimica y Minera de Chile (NYSE:SQM)
• Piedmont Lithium Ord Shs (NASDAQ:PLL)

Rare Earth

Mining

Renewable Energy