Green rush off to a slow start
![](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/metals/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co_1713001313/grid-0-par/wrapper/wrapper/image.img.82.3360.png/1722254842166/sensitive-risk.png)
SENSITIVE RISK FOR ENTERPRISES
Last Update: July 2024
Strengths & Weaknesses
![Strenghts](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/metals/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-0-par/wrapper_copy_copy_co/wrapper/image.img.82.3360.png/1720687529774/plus.png)
- Increasing demand for metals, especially those critical to renewable energy technologies and electric vehicles, which could quadruple by 2040 compared to 2020 in a Net-Zero scenario
- Despite volatility, many metals still have higher prices than their historical averages, boosting profitability for the sector
- Government focus on critical materials could increase support for the sector
- Firms' strong liquidity positions
![Weaknesses](/content/onemarketing/aztrade/allianz-trade_com/en_global/economic-research/sector-reports/metals/_jcr_content/root/parsys/wrapper/wrapper/multi_column_grid_co/grid-1-par/wrapper_copy_copy/wrapper/image.img.82.3360.png/1720687542983/minus.png)
- High exposure to geopolitical tensions and conflicts
- Fragmented supply chain at risk of disruptions
- Mining companies are facing increasing pressure related to ESG (water use, biodiversity, social impacts etc.)
- High capital intensity
- Extensive mine lead times