The energy transition was the key driver behind 25% of the top 20 mining mergers and acquisitions (M&A) deals last year, GlobalData showed in a recent report.

A report from a leading data and analytics company, Mining Industry M&A Deals by Top Themes in 2022, divulged an increase in demand for metals like cobalt, nickel, and lithium.

"These metals are crucial for renewable power and electric vehicle (EV) production, which will play a vital role in the transition to clean energy," the report said.

The report said the mining industry responded to consumer and shareholder demand for portfolio diversification and sustainability, given that the energy transition was an essential driver of M&A deal activity due to growing calls for decarbonization.

According to William Tyson, an associate analyst of thematic intelligence at GlobalData, who commented on the report, mining companies are shifting their portfolios to focus more on future-facing metals.

"GlobalData predicts that global EV production will exceed 30 million vehicles by 2031, and mining companies will have to upscale to provide the essential metals required to produce EV batteries and meet demand," Tyson said.

Source: Anadolu Agency