In economics everything is said to be scares. Natural Resources, labor and capital are limited. There are only 24 hours in everyone’s day, even computers and AI cannot change that. Copper, silver, aluminum, and rare earth metals are in high demand around the world and especially here in the United States. They are all needed as input for everything that we need to produce, transport, store, and use energy. This is not to mention the fuels that we use for the energy itself.
The increasing demand for electricity will need an increase in the supply of electricity or the price will continue to increase over the years. However, this increase is not in a vacuum. We also need to increase the distribution network, power lines, for electricity. There are 7 different types of power lines: High-Voltage Transmission, Medium Voltage Distribution, Low-Voltage Service, Overhead Power, underground Power Cables, Submarine Power Cables and Specialty Power lines. The focus on increasing distribution will be on the High and Medium Voltage. The lines are made of mostly aluminum alloy. With an increase in demand for lines there will be an increase in demand for aluminum.
Bauxite is the primary ore for aluminum production. The three major countries that produce it are Guinea, China and Australia. They account for 72% of the world supply, totaling 400 million tons. The United States relies heavily on recycling and importing aluminum from overseas. The US would have to import more aluminum or import finished powerlines to meet the growing demand to expand the electricity grid.
Sandon Analytics 