Dwarfing the previous commodity supercycle, the decarbonisation thematic is driving long-term demand not only for iron ore but also copper, lithium, manganese, cobalt and other materials needed in batteries, solar-power, wind-power and carbon capture technologies.
Far from simply being a China story this time around, it’s now a global theme that is driven by demand and also regulations, as countries around the world implement clean-energy targets into 2050 and beyond, explains Janus Henderson global natural resources portfolio manager, Darko Kuzmanovic.
“What we’re seeing is a demand-driven, structurally-driven scenario,” he says.
“There will be economic upcycles and down cycles, but the trend will more likely be up.”
In the following video, Kuzmanovic explains the implications for investors and reveals his team’s long-term view on lithium prices.