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Future Returns: Copper Plays a Leading Role in the Green Economy

A Tesla electric car charges at a public charging station in Berlin, Germany, last month. Mining and mineral stocks don’t exactly scream sustainability, but a growing emphasis on renewable energy, sustainable infrastructure, and green transportation is driving incremental demand for certain commodities, particularly copper.

“Over the next 10, 20, 30 years, a lot of capital is going to be allocated toward reaching zero-emissions targets that countries are setting globally,” says Nick Niziolek, co-CIO and head of international and global strategies at Calamos Investments.

While he and his colleagues think these initiatives will require a wide range of raw materials, copper is key because it is a highly-efficient conduit.

Renewable energy generation is up to five times more copper intensive than conventional power because it is more decentralized and requires multiple, smaller units to be connected to the main grid, according to Calamos research.

A single onshore wind turbine requires more than four tons of copper. Meanwhile, the growth in electric vehicles is also giving copper a lift. The typical EV needs four times more than a comparable internal combustion vehicle, Calamos notes, while copper is also needed for EV charging stations.

A Cyclical Play Gets a Secular Boost […]

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