Diversified exposure
Provides diversified and targeted access to key metal commodities that are involved in energy transition technologies.
The world is becoming increasingly energy-hungry and the story is no longer just a ‘transition’ from one energy system to another. A more accurate framing is energy addition: total energy demand keeps rising, and a meaningful share of new renewable capacity is being built to meet incremental demand, not simply to replace legacy sources. Six forces are driving demand. First, we are in an era of energy addition: total energy demand is rising as economies grow and electrify, and a meaningful share of new renewables is being built to meet incremental demand rather than simply replace legacy supply. Second, decarbonisation and electrification are scaling, driving a metals-intensive buildout across renewables, batteries and grid infrastructure. Third, energy security has become a dominant policy priority since the Russia-Ukraine war, accelerating diversification of supply and ‘friend-shoring’ efforts that are infrastructure-heavy and metals-intensive. Fourth, data centres are contributing to sustained growth in electricity demand and in some regions, already creating localised constraints that require incremental generation and grid reinforcement. Fifth, artificial intelligence (AI) acts as an additional catalyst because AI workloads are materially more power intensive than traditional computing, amplifying the need for generation and grid investment as deployment scales. Sixth, two technology trends continue to raise metals intensity across the economy: 5G rollout (connectivity and wiring) and evolving vehicle technology (greater electrification, higher electronic content and lightweighting).
The result is a broader, more durable demand backdrop: decarbonisation, energy security, electrification and digital infrastructure are now reinforcing each other, supporting the case for strategic metals exposure.
