Bank of America Securities: Rising defense spending ignites metal "military-industrial dividend" with structural strong growth in aluminum and copper demand

Bank of America Securities released a research report indicating that with the globalization of multipolarity, the rising defense spending is increasingly impacting metal demand. NATO has committed to spending 5% of GDP on defense, which is expected to drive structural growth in the demand for aluminum and copper. In 2024, NATO countries' spending on core defense is projected to be USD 507 billion, and if the 3.5% GDP target is met, an additional USD 371 billion will be spent. It is expected that by 2030, the annual demand for aluminum and copper will increase to 1.6 million tons and 553,000 tons, respectively, primarily driven by equipment spending. In addition, the post-war reconstruction of Ukraine will further increase metal demand