The world is transitioning to clean energy at a rapid pace. Many countries are planning to reduce their carbon footprint. As the transition to a newer world gains traction the demand for clean energy commodities would go up. The traditional fossil fuel-based automobiles are increasingly replaced by electric vehicles. Coal powered electric power plants are getting shutdown and replaced by renewable energy produced from sources such as solar or wind. The commodities needed for the transition to clean energy are concentrated in a handful of countries.

The chart below shows the top three producers of clean energy metals – Copper, Nickel, Cobalt, Rare Earths and Lithium.  Chile is the world’s largest copper producer but the country just recently elected a leftist leader. Similarly the Democratic Republic of Congo is the top producer for cobalt. Australia is a top lithium producer but 70% of the world’s Lithium reserves are found in the Lithium Triangle formed in an area at the intersection of Chile, Bolivia and Argentina.

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Source: 2021 IN CHARTS, Mirabaud Asset Management