Frik Els

Value of the graphite, lithium, nickel, cobalt and magnesium contained in EV batteries is up 38% from the lows struck in January.

A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.

“Though commodities are often seen as an inflation hedge, in this instance – where inflation is neither driven by strong demand growth nor a negative commodity supply shock – they would struggle to live up to that reputation.”

CHART: Copper price is being held hostage by Beijing

Nvidia throws shade on entire global mining industry.

The raw materials bill for the average EV is now down to $537 compared to $1,342 in August 2023 and a monthly peak of more than $1,900 at the beginning of last year.

World’s 50 biggest miners now worth $1.5 trillion, up $76 billion during Q3 as gold miners climb the rankings and Chinese mining stocks get a late boost. 

“We feel quite comfortable that we have not bought a lithium company at the top of the cycle right now. We had to pay a fair price, and that’s what we’re paying.”

Copper prices fell sharply on Tuesday after hopes of further stimulus in China evaporated and conditions for a repeat of May’s record setting squeeze faded. 

Demand for energy transition metals has injected optimism into mining, but it represents only a sliver of the $4 trillion global industry.