![]() ![]() Tesla, at its recent battery day, outlined growth expectations that implied the company would need 80% of the world’s current nickel production in 10 years. “Copper is the oil of the clean energy economy.” “If you want to overhaul the electric grid, you need copper,” says White. Sandfire Resources, an Australian gold and copper miner also looks attractive. White currently likes Grupo Mexico, a misunderstood conglomerate with a controlling stake in Southern Copper, which mines in Mexico and Peru. “Lithium is abundant, while copper is a precious metal.” If you want to fight climate change, copper is the oil of the clean energy economy.” Solar and wind generators use roughly 10 times the copper of fossil fuel plants for comparable generation capacity, while electric vehicles need at least three times more copper than an internal combustion engine. He sees better returns ahead for the companies that supply the raw materials that go into batteries rather than those that sell the finished product.ĭon’t get hung up on lithium, a main ingredient in lithium ion batteries, he says. To invest in it, it’s best to apply a global perspective, says Lucas White, portfolio manager at GMO, who manages $1.1 billion in natural resources strategies and has generated 23% annualized returns the past five years. Indeed, the battery trend is bigger even than Texas. Copper and nickel miners like Norilsk and Sandfire will benefit from a battery boom.
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |