Kalkine Group Opines Abundant Opportunities for Critical Metals

SYDNEY, Nov. 18, 2021 /PRNewswire/ -- Global Clean Energy Transmission provides a big investment opportunity for Rare and Critical Metals such as uranium, aluminium, rare earth, copper, lithium, and graphite. These metals are geologically rare and economically crucial with wide usage in batteries, electric vehicles, and low emission technologies.

Ample Pay-off from Sustainable Investing

The bewildering green initiatives by the advanced economies such as whopping US$1.75 trillion investments by the US government (New Jersey Business & Industry Association press release dated October 28, 2021) towards climate change and infrastructure, and EUR 1 trillion by the EU government (World Economic Forum press release dated July 13, 2021) towards the sustainable investment plan are hard-charging the clean energy space.

The Australian market showcased ample natural resources with rare earth's share of the global output touching high single-digit. The government's big push with $2 billion liquidity support (as per the press release from the Prime Minister of Australia dated 28 September 2021) will lace up the production of critical metals.

The Uranium Frenzy

The investor community elated the comeback of nuclear energy with an upswing in the number of nuclear power plants and reactors by developing countries to tackle the surge in demand and supply gaps in the green energy sector during the turbulent pandemic time.

Kalkine's recent observation in view of insights and research highlights the increased usage of praseodymium, neodymium, and dysprosium in low emission technologies. Thrilled by offtake from China and Europe, spending on electric vehicles may reach 30% annually by 2030 as per the International Energy Agency. Investments in graphite and lithium metals are expected to be under the limelight with a spurt in consumption by Asia and demand from automakers.

Investments in strategic metals and battery materials hit the podium over the broader index. With the zero-emission push by regulators, the government stimulus and spurt in prices of nickel, spodumene, and uranium, the ASX 300 Metals and Mining Index posted returns of astonishing ~75.91% in the past 5 years versus ~39.60% returns by ASX 200 Index during the same period (Source: REFINITIV). 

S&P Global Clean Energy Index more than tripled in the past 5 years versus just ~13.34% return generated by S&P Global 1200 Index over the same period (Source: REFINITIV).

Therefore, there seems to be immense potential through untapped reserves for globally sought-after critical minerals, supporting jobs, economies, and companies operating in the ecosystem across Australia, Europe, and the US.

Given this backdrop, Kalkine provides deep research on opportunities around the Strategic Metals and Rare Earth Sector after carefully assessing the global demand and supply scenario, investment themes, company's valuation, technical trends, outlook, and risks, etc.

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