I haven’t seen this kind of energy in a city in years…
I’m talking about Perth, in Western Australia.
As regular readers know, I was in Australia for a few weeks.
I had meetings with folks there… from policymakers and business leaders to miners and engineers.
And Perth really got my attention.
I could see that it’s looking toward the future. And it’s building for it, too.
Perth’s sprawling skyline is home to companies like Rio Tinto, South32, and BHP
All the major mining companies are on hiring sprees, especially for engineers.
Almost anywhere you go, you can see the impact of mining. And as I’ll show you today, that spells opportunity if you know where to look.
A Global Mining Powerhouse
It’s almost impossible to go a couple of blocks around the city without seeing a mining office.
That’s why Perth is ground zero for mining in Australia. It’s a leader in mining around the world, too.
But more on the companies that call it home in just a moment.
First, what you need to know is that investors, businesses, and international governments are paying more and more attention to Western Australia.
Around 60% of Australia’s gold reserves are here, along with 98% of its iron ore. In fact, Western Australia ranks as a top region in the world for mining investments.
Now, savvy investors know that Perth has been a place of great opportunity for a long time. But the trend of new mineral exploration and processing is really ramping up.
I had incredible conversations with business leaders there. I made some fantastic new contacts, too.
And I learned that exploration and development are booming for two resources in particular: lithium and vanadium.
As regular readers know, lithium is a main component of rechargeable batteries. That includes electric vehicle (EV) batteries.
Vanadium is mainly used for steel production. But a new vanadium battery prototype – which is currently being developed – could become very common.
And that’s why companies that supply the auto industry are taking note.
Take Chevron, the American energy giant. It has been in Western Australia’s oil and gas sector for 70 years.
But from what I heard, Chevron might be getting into lithium and battery production in Western Australia, too.
Profits, Not Politics
Materials like lithium and vanadium are already abundant in Australia. And now, these sorts of moves towards processing could be game changers for EVs.
That’s because, in Australia’s mining sector, many people see new battery tech as a massive long-term opportunity. Not as a political or ideological viewpoint.
The same goes for the overall sustainable energy trend.
And it makes a lot of sense. Just look at this chart from the U.S. Energy Information Administration (EIA). It tracks global energy consumption needs through 2050.
As you can see, renewable energy is projected to grow by 50% through 2050. And we’re already seeing rising demand…
In fact, according to the International Energy Agency (IEA), renewable capacity will meet 35% of global power generation as soon as 2025.
So even though traditional energy isn’t going away anytime soon, there will be major growth in the renewable energy sector.
But as we know, the wind doesn’t always blow, and the sun doesn’t always shine. So solar and wind farms need to be able to store the energy they generate.
That’s where batteries come in.
Batteries allow energy from wind and solar to be stored for use at a later time. That way, power is delivered on-demand.
To say that storage will be a big focus in the energy transition would be an understatement. It’s going to be massive…
In fact, the market for batteries is estimated to increase more than fourfold in just 10 years… from nearly $112 billion in 2021 to almost $424 billion in 2030.
And that brings me back to the companies that have set up shop in Perth’s buzzing city center.
Major mining companies like South32 and Rio Tinto have offices here. (If you missed my video from Rio’s offices, catch up here.)
So do global energy giants like BHP, ExxonMobil, Shell, and Chevron.
Nomi visits Perth’s modern city center
And it’s easy to see why. Because as I showed you above, the energy market is set to explode. And so is mining…
The global mining market grew from $2 trillion in 2022 to $2.1 trillion in 2023. That’s a compound annual growth rate of 6.1%. And it’s expected to reach $2.8 trillion in 2027.
In particular, the growth in Australia has been nothing short of explosive. The market size of the Australian mining industry has increased 13% per year on average between 2018 and 2023. It stands at $527.2 billion at writing.
And the emerging battery industry is set to inject $27.3 billion into the Australian economy by 2030.
All of this is why in many of our advisories, we’re hyper-focused on the best companies in mining and broad energy. That includes companies that call Perth home.
Now, out of respect for my paid-up subscribers, I can’t give away the names here. But there is a simple way you can position yourself to profit, even if you’re not paid-up yet.
To start, consider the Invesco WilderHill Clean Energy ETF (PBW). This exchange-traded fund (ETF) invests in the full battery cycle.
That means it does everything from mining and refining metals to battery production. So it gives you broad exposure to this fast-growing industry.
PBW has about $698 million of assets under management. And at writing, it holds 75 stocks. Plus, you can access it in a regular brokerage account.
So it’s a great place to start your search.
Regards,
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Nomi Prins
Editor, Inside Wall Street with Nomi Prins
P.S. I haven’t been this excited about a trend in decades. That’s why I created Energy Distortion Monitor. It’s unlike any other service I offer…
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