• Home
  • News
    • People moves
    • Africa
    • Asia
    • Australia
    • Canada
    • Caribbean
    • Domicile
    • Europe
    • Latin America
    • North America
    • Middle East
    • US
    • US
    • UK
  • Products
    • Funds
    • Pensions
    • Platforms
    • Insurance
    • Investments
    • Private Banking
    • Citizenship
    • Taxation
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Directory
  • Video
  • Advertise with us
  • Directory
  • Events
  • European Fund Selector
  • Newsletters
  • Follow us
    • Twitter
    • LinkedIn
    • Newsletters
  • Advertise with us
  • Directory
  • Events
    • Upcoming events
      event logo
      International Investment Nordic Forum 2021

      International Investment is delighted to announce the 2021 International Investment Nordic Forum which will take place on Tuesday March 9, at 9am (GMT). This curated virtual event will be broadcast live and will feature a series of fund manager interviews and presentations, as well as interviews with some of the Nordic regions top fund selectors.

      • Date: 09 Mar 2021
      • ONLINE, ONLINE
      event logo
      Sustainable Investment Festival 2021

      The Sustainable Investment Festival will run online from 22-25 June and will include thought-provoking presentations from renowned keynote speakers, innovative breakout events and sessions specifically tailored to meet the information needs of fund selectors, financial advisers, pension consultants, trustees and scheme managers.

      • Date: 22 Jun 2021
      • Online, Online
      View all events
  • European Fund Selector
International Investment
International Investment

Sponsored by

Sharing Alpha
  • Home
  • News
  • Products
  • Fintech
  • Regulation
  • ESG
  • Expats
  • In Depth
  • Special Reports
  • Video
  • ESG

Rare earths are the 'untold sustainable investment story': RWC

Rare earths are the 'untold sustainable investment story': RWC
  • Christopher Copper-Ind
  • @intlinvestment
  • 01 February 2021
  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  

Investments in rare earths sit at the perfect intersection of a drive towards a more sustainable energy infrastructure globally, presenting an ideal investment opportunity, according to RWC Partners' Clark Fenton.

With emissions from burning fossil fuels exacting an unsustainable cost in the form of climate change and its adverse consequences, Fenton says new sources of energy are critical in order to navigate a more sustainable course to power the economy and support the population.

Related articles

  • Stoxx launches Global Rare Earth Index as high-tech demand for rare metals soars
  • Rare earth metals, wind power driving New Energy returns
  • Emerging markets funds 'in the vanguard' of ESG investing over next five years
  • DNB renewables fund spots rare earth metals opportunity amid US-China trade war

Key materials such as copper, nickel and uranium, will play a critical role in transitioning to cleaner energy and Fenton is particularly positive about opportunities within rare earth commodities.

Currently, both the demand and supply sides are converging to boost the price of rare earths significantly.”

"Unlike many commodities, rare earths do not have traded futures, so the investment opportunity lies in companies extracting and refining the materials. Currently, both the demand and supply sides are converging to boost the price of rare earths significantly," Fenton said today.

Rare earths, particularly Neodymium and Praseodymium (NdPr), are used to produce some of the world's most powerful permanent magnets. While useful in a variety of technologies, permanent magnets are key components in electric vehicles (EVs) and many wind turbines, both high-growth segments in the race to reduce emissions.

"Both EVs and wind power have a major role to play in the sustainable energy transition. Announcements such as Boris Johnson's in the UK that new petrol and diesel cars will be banned for 2030 draws a clear pathway for EVs to become the go-to option in car manufacturing.

"Rare-earth (NdPr) magnets feature in more than 90% of EVs, and magnets in EV powertrains are anticipated to grow by 15x over the next decade. By 2035 it is estimated that EVs alone could consume 100% of current annual NdPr production. Furthermore, demand for magnets to supply to wind turbines is expected to grow at a 9.4% compound annual growth rate."

"What makes this investment opportunity particularly compelling is not only this demand dynamic for the materials themselves, but also the limited way investors can participate. There are only a handful of companies listed outside of China with meaningful rare-earths productions," added Fenton.

"Companies which seek to mine and refine these critical components in a more environmentally friendly manner will benefit greatly from the move to a more energy aware world."

Subscribe to International Investment's free daily newsletter

  • Tweet  
  • Facebook  
  • LinkedIn  
  • Send to  
  • Topics
  • ESG
  • RWC Partners
  • ESG

More on ESG

HSBC Asset Management appoints head of investor relations for alternatives

  • People Moves
  • 04 March 2021
Registrations open for Sustainable Investment Festival - book your place now

  • ESG
  • 25 February 2021
Jupiter commits to net zero emissions and aligns with sustainable initiatives

  • ESG
  • 23 February 2021
Comment: Four key issues powering the renewable energy revolution

  • Comment
  • 22 February 2021
J.P. Morgan Asset Management launches Global Income Sustainable Fund

  • ESG
  • 22 February 2021
Back to Top

Most read

HSBC appoints CEO for the Middle East region
HSBC appoints CEO for the Middle East region
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
People moves: Phoenix Group, Franklin Templeton, TMF Group, AJ Bell, Arete, Just Group
Nordic Fund Selector of the Year 2021 shortlist announced
Nordic Fund Selector of the Year 2021 shortlist announced
UK Budget: Sunak freezes lifetime allowance for pensions contributions
UK Budget: Sunak freezes lifetime allowance for pensions contributions
Europe's wealth mangers increasingly focusing on Bitcoin: survey
Europe's wealth mangers increasingly focusing on Bitcoin: survey
  • Contact Us
  • Marketing solutions
  • About Incisive Media
  • Terms and conditions
  • Policies
  • Careers
  • Twitter
  • LinkedIn
  • Newsletters

© Incisive Business Media (IP) Limited, Published by Incisive Business Media Limited, New London House, 172 Drury Lane, London WC2B 5QR, registered in England and Wales with company registration numbers 09177174 & 09178013

Digital publisher of the year
Digital publisher of the year 2010, 2013, 2016 & 2017
Loading