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For Professional Clients and, in Switzerland, for Qualified Investors only. In Israel for Sophisticated Investors only.
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© 2019. BNY Mellon Investment Management International Limited. All rights reserved.
IDEAS AND KNOWLEDGE TO INSPIRE YOUR INVESTMENTS THINKING
20 June 2019

Green energy movement reliant on commodities

Trends such as the rise of electric vehicles (EVs) and the increase in demand for renewable energy, in which copper is a key conductor in areas like wind turbines, are adding to global demand for the red metal. This widespread need is a potential income boon for the countries that mine it, like Chile (the world’s largest copper producing country), Peru, Mexico and Indonesia.

 

Copper is not the only metal feeling the effects of the green energy movement, many commodities are beneficiaries of the growing adoption of renewables and accompanying technological advancements. Metals such as nickel, lithium and cobalt are essential components in battery technologies. While mining in such commodities are global, emerging markets such as Russia, Argentina, China and the Democratic Republic of Congo, have a dominant position.

 

There are select opportunities in commodities as a result, despite the current short-term uncertainty thanks to trade tensions and creeping investor wariness of a market downturn. However, on a longer term view as brown energy becomes more expensive and as green becomes an increasingly mainstream substitute, commodities linked to next-generation energy will likely experience a tail-wind.

 

Robin Wehbé, portfolio manager, Mellon.

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Investment Managers are appointed by BNY Mellon Investment Management EMEA Limited (BNYMIM EMEA) or affiliated fund operating companies to undertake portfolio management activities in relation to contracts for products and services entered into by clients with BNYMIM EMEA or the BNY Mellon funds.

 

On January 31, 2018, The Boston Company Asset Management, LLC (TBCAM) and Standish Mellon Asset Management Company LLC (Standish) merged into Mellon Capital Management Corporation (Mellon Capital), which immediately changed its name to BNY Mellon Asset Management North America Corporation.

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