Ofi Invest Energy
Key metals in tomorrow’s energy
From agriculture to manufacturing to medicine, metals have become a must in today’s world. The race for technology and the energy transition is expected to boost demand in the coming decades.
At Ofi Invest Asset Management, our managers, who have been experts in this field for more than 20 years, have selected eight metals they regard as strategic and that offer long-term investment opportunities: copper, silver, nickel, palladium, platinum, aluminium, zinc and lead.
Metals: a market of opportunities to seize in a long-term allocation
21st century lifestyles depend on metals
The race for technology and the energy transition are behind the exploitation of almost all 86 metals in the periodic table of elements, up from about 10 in the 20th century.
ILLUSTRATION OF THE INCREASED NUMBER OF METALS IN USE BASED ON TECHNOLOGICAL TRENDS
Metals consumption by digital technologies: still far from total dematerialisation
The energy transition is expected to consume lots of metals
FUTURE DEMAND FOR MINERALS FOR CLEAN TECHNOLOGIES BY SCENARIO (2020 VS 2040)
Why choose Ofi Invest Energy Strategic Metals?
- Exposure to metals deemed strategic by the management team in transforming our energy system
- An original and diversifying investment solution (compared with more traditional asset classes) that is eligible for life insurance contracts(1)
- No investments in sector equities or bonds
- The shift in our energy systems is expected to consume lots of metals
- Growing demand will be driven by global decarbonisation challenges
THE DEVELOPMENT OF CLEAN TECHNOLOGIES IS BOOSTING DEMAND FOR METALS
Renewable energies consume more metals and conventional energy technologies (nuclear, coal, etc.). In a scenario in which we comply with the Paris Agreement’s goals on greenhouse gas reductions, demand for copper could rise by 40% and demand for nickel by 60% to 70% by 2040 (International Energy Agency report, May 2021).
The situation is becoming critical for many metals used intensively in many industrial applications and for which substitutes are hard to find in the short term. As reserves are limited and production is concentrated geographically, operating costs are rising, pushing metal prices up and, hence, generating investment opportunities on these markets.
Measures to combat climate change could raise metal prices and generate investment opportunities.
Head of Commodities Strategies,
Ofi Invest Asset ManagementT