Battery Metals are critical for
the Energy Transition
Electrification and Decarbonisation Thematic
The Energy Transition has begun moving towards a low-carbon future.
We believe in an ongoing up-stream raw materials supply shortage. There is an increasing urgency to progress decarbonisation and electrification to make an impact on our environment. Battery Metals supply is lagging behind strong demand from EV, energy storage systems and portable electronics. There is simply not enough raw materials to feed the growing number of battery factories.
EV growth
EV adoption is accelerating and internal combustion engines are going to be phased out between 2030 - 2040.
Battery Metals
Lithium, graphite, nickel and other minerals are in high demand. Mining investment is needed to supply factories.
Energy Storage
Battery technology advances rapidly. Fierce competition improves performance and the economics of batteries.
Ownership
Those who own the resource are in control. Mining majors, midstream processors, battery producers, auto OEMs and traditional energy companies are all pushing into the space.
The Investment Opportunity
Climate Change mitigation creates business opportunities in the resources sector.
Energy Transition
The global energy sector shifts from fossil-based systems of energy production and consumption (oil, natural gas and coal) towards renewable energy production (wind & solar) and energy storage (batteries).
Critical Elements
“A low-carbon future will be very mineral intensive because clean energy technologies need more materials than fossil- fuel-based electricity generation technologies.”
World Bank Group, 2020
Economics & Geopolitics
The STRUCTURAL DEFICIT of critical elements and geopolitical instability push up raw material prices. More investment is required to explore, develop and produce more Battery Metals. In our view this is a generational movement.
The Energy Transition is shifting supply and demand balances of many commodities, creating business opportunities in the resources sector.
Applications drive raw material demand
We believe in a structural deficit in raw materials.
Hardware
Building infrastructure for a sustainable energy production requires more and other materials. I.e. offshore wind turbine generators getting smaller, lighter, more efficient and more reliable. Permanent magnet generators use magnetic steel, copper and rare earth elements.
Energy Distribution
Power grid updates will ensure grid stability and avoid blackouts linked to high penetration of renewable energy.
Energy Storage
Batteries for electric vehicles (EVs), energy storage systems and portable electronics are in high demand. Artificial intelligence technology optimises decentralised grids by balancing supply & demand in real-time.
Electric Motors
The share of electric motors is expected to multiply. Strong growth is expected in motor systems in EVs and heat pumps, used in heating / cooling buildings. Electric motors typically require iron, nickel, cobalt and magnetic materials.
Electric Vehicle Mobility
The future of mobility is electric. The rate of adoption is accelerating. Battery Metals are the limiting factor.