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Energy Shift

The Future Value of Disruptive Materials

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The following content is sponsored by Global X ETFs

The Briefing

  • By 2030, the collective market for disruptive materials is expected to reach over $800 billion
  • Copper is the largest market while lithium is the fastest growing

The Future Value of Disruptive Materials

A select number of materials have a critical role to play in the expansion of next generation technologies. This could lead to a surge in demand and a potential soaring of market values for each material as a result.

This graphic from Global X ETFs takes a closer look at the forecasted market value for 12 disruptive materials, which are seeing increasingly large climate investment.

Soaring Market Values

The materials highlighted are each a billion dollar market in their own right. But which has the largest projected future market value?

Copper is one of the largest and most mature markets from this group. And as a result sees a lower projected compound annual growth rate (CAGR).

Disruptive MaterialProjected Market Value ($B)CAGR (over forecast period)
Copper$394.0B by 20294.2% (2021-2029P)
Lithium$191.0B by 202823.3% (2021-2028P)
Nickel$59.0B by 20287.3% (2021-2028P)
Zinc$49.6B by 20274.0% (2021-2027P)
Manganese$42.0B by 20277.4% (2019-2027P)
Cobalt$17.3B by 202912.5% (2021-2029P)
Rare Earth Metals$15.4B by 20309.1% (2021-2030P)
Platinum$9.6B by 20275.0% (2020-2027P)
Carbon Fiber$9.0B by 20309.2% (2022-2030P)
Carbon Materials$8.7B by 20276.8% (2020-2027P)
Palladium$5.6B by 20284.6% (2022-2028P)
Graphene$1.3B by 202816.2% (2022-2028P)

However, when it comes to the fastest growing market, lithium reigns supreme with a CAGR of over 23% between the forecast period of 2021 and 2028. Lithium is a vital ingredient for lithium-ion batteries, used in EVs and elsewhere.

Altogether, the collective market value for these top materials is expected to be worth over $800 billion by the end of the decade. And in the subsequent years, as efforts to tackle climate change accelerate, the collective value of these materials may well hit $1 trillion.

Introducing the Global X Disruptive Materials ETF

The Global X Disruptive Materials ETF (Ticker: DMAT) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Disruptive Materials Index.

The Global X Disruptive Materials ETF is a passively managed solution that can be used to gain exposure to the rising demand for disruptive materials. Click the link to learn more.

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Energy Shift

Visualizing Global Energy Production in 2023

Fossil fuels accounted for 81% of the energy mix.

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Pie chart showing energy production by source in 2023.

Visualizing Global Energy Production in 2023

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Global primary energy consumption reached a new record of 620 exajoules (EJ) for the second consecutive year in 2023, up from 607 exajoules in 2022.

This graphic shows the sources of energy used globally in 2023, measured in exajoules. Data is from the 2024 Statistical Review of World Energy by the Energy Institute, released in June 2024.

Fossil Fuels Accounted for 81% of the Energy Mix

Despite efforts to decarbonize the economy, fossil fuels still accounted for over 80% of the global energy mix in 2023.

Oil was responsible for 32% of the energy consumed around the world, followed by coal (26%) and then natural gas (23%).

Energy SourceConsumption in exajoulePercentage (%)Fossil Fuel
Oil19632%Yes
Coal16426%Yes
Natural Gas14423%Yes
Hydro-electric406%No
Nuclear Energy254%No
Other Renewables518%No
Total620100%

The Asia-Pacific region was responsible for nearly 80% of global coal output, with significant contributions from Australia, China, India, and Indonesia.

Global coal consumption also continued to rise, exceeding 164 EJ for the first time ever.

China remains the largest consumer of coal, accounting for 56% of the world’s total consumption. However, in 2023, India’s coal consumption exceeded the combined total of Europe and North America for the first time.

Oil consumption, in particular, rebounded strongly last year compared to 2022, largely due to China relaxing its zero-COVID lockdown policies.

Renewables’ share of total primary energy consumption reached 14.6%, an increase of 0.4% over the previous year. Together with nuclear, they represented roughly 19% of total primary energy consumption.

Renewables like solar and wind accounted for 8% of the energy generated in 2023, followed by hydroelectric (6%) and nuclear (4%).

Editor’s Note: The graphic was updated on July 16, 2024, to correct an error in the fossil fuel values.

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Energy Shift

Visualized: The Growth of Clean Energy Stocks

Visual Capitalist partnered with EnergyX to analyze five major clean energy stocks and explore the factors driving this growth.

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This line chart shows the growth of clean energy stocks and hints at their cumulative five-year returns.

The Growth of Clean Energy Stocks

Over the last few years, energy investment trends have shifted from fossil fuels to renewable and sustainable energy sources. Long-term energy investors now see significant returns from clean energy stocks, especially compared to those invested in fossil fuels alone.

For this graphic, Visual Capitalist has collaborated with EnergyX to examine the rise of clean energy stocks and gain a deeper understanding of the factors driving this growth.

Sustainable Energy Stock Performance

In 2023, the IEA reported that 62% of all energy investment went toward sustainable sources. As the world embraces sustainable energy and technologies like EVs, it’s no surprise that clean energy companies provide solid returns for their investors over long periods.

Taking the top-five clean energy stocks by market cap (as of April 2024) and charting their five-year cumulative returns, it is clear that investments in clean energy are growing:

CompanyPrice: 01/04/2019Price: 12/29/20245-Year-Return %
First Solar, Inc.$46.32$172.28272%
Enphase Energy, Inc.$5.08$132.142,501%
Consolidated Edison, Inc.$76.55$90.9719%
NextEra Energy, Inc.$43.13$60.7441%
Brookfield Renewable Partners$14.78$26.2878%
promotional graphic with a button and wheel that promotes the EnergyX investment site

But how does this compare to the performance of fossil fuel stocks?

When comparing the performance of the S&P Global Oil Index and the S&P Clean Energy Index between 2019 and 2023, we see that the former returned 15%, whereas the latter returned an impressive 41%. This trend demonstrates the potential for clean energy stocks to yield significant returns on an industry level, sparking optimism and excitement for potential investors.

A Shift In Returns

With global investment trends moving away from traditional, non-sustainable sources, the companies that could shape the energy transition provide investors with alternative opportunities and avenues for growth.

One such company is EnergyX. The lithium technology company has patented a groundbreaking technology that can improve lithium extraction rates by an incredible 300%, and its stock price has grown tenfold since its first offering in 2021.

promotional graphic that promotes the EnergyX investment site
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