Energy Transition8 Dec 2022 08:20
https://www.reuters.com/article/us-autos-conference-tesla-mining-idCAKCN2MW2A8
Musk told the FT Future of the Car 2022 conference. “We will address whatever limitations are on accelerating the world’s transition to sustainable energy. It’s not that we wish to buy mining companies, but if that’s the only way to accelerate the transition, then we will do that.”
From Citywire this afternoon:
Evy Hambro says the undersupply of metals needed to drive the energy transition remains ‘very scary’, an imbalance leading to elevated prices which should continue to boost his BlackRock World Mining (BRWM) investment trust.
The manager, who runs the equivalent £5.2bn BGF World Mining open-ended fund as well as the £1.3bn trust, added he has taken ‘a lot of comfort’ in the high level of interest investors have shown across the sustainable energy sector, dispelling fears that it may have been short-lived.
Speaking at a BlackRock outlook event, the manager gave the example of electric vehicles (EV), which have wrested an increasing portion of market share from combustion engine cars in recent years, with ‘phenomenal growth’ that has made bullish forecasts look ‘pedestrian’ relative to the rate of adoption.
Despite the difficult investment environment, returns along the EV value chain – from producers of lithium used in the batteries and up – have been ‘spectacular’ and Hambro has noticed clients want to dig deeper into these trends and the drivers behind them.
‘That intellectual curiosity is very reassuring because it means the theme is intact and...is going to be with us for a long period of time,’ Hambro (pictured below) said ...
Supply is so uncertain that governments are considering paying the producers of raw materials to guarantee access, a trend that Hambro has never seen in his 30-year career, which will drive down the cost of capital for some of these businesses ...
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