Hybrid car drive

China's industrial transformation will underpin a 20 to 30-year super cycle that resource-based economies such as Australia and Canada are yet to comprehend, according to international mining magnate Robert Friedland.

Specifically, Mr Friedland – chairman of Ivanhoe Mines, which holds a large copper project in Mongolia – identified nickel, copper and platinum as metals of the future.

China’s electricity demand, as well as the development of “hybrid” cars, will drive short and long-term demand for these commodities.

Powered by a mix of gasoline and electricity, hybrid cars offer increased fuel efficiency but are manufactured with more copper and nickel.

Mr Friedland said that, worldwide, governments, including China, which is predicted to be the world’s largest car manufacturer in less than 20 years, were recognising the need for cleaner, less oil-reliant automobiles.

“What’s happening is the Chinese Government is smart enough to realise that if they build 500,000 million gas-guzzlers – they are already the world’s second largest oil importer – they are going to have a huge environmental issue as well as balance of payments issue,” he told WA Business News.

“So they want hybrid cars.”