According to Goldman Sachs, the surge in demand for metals such as copper, nickel, and lithium is just beginning to unfold. The financial institution has highlighted that the concept of “green demand” is currently dominating the market fundamentals and is largely underestimated by investors at this time. Their analysts noted in a March report that the increasing investments in electric vehicles, renewable energy generation, and energy storage solutions are driving the demand for these metals. This growth has allowed the demand for metals to surpass challenges presented by a property downturn in China and a cyclical economic slowdown in the West. Specifically, demand for copper is projected to grow significantly, reaching 17% of the total demand for green metals by 2030, up from just 7% currently. Furthermore, if the global shift towards net-zero emissions gains momentum, an additional 54% increase in copper demand may be required by 2030. Copper plays a vital role across various sectors, especially in construction and industry, as it is an essential component in electric vehicles, where it is utilized in batteries, wiring, charging stations, and more. Meanwhile, in a separate analysis, UBS expressed optimism regarding the future demand for copper, revealing a substantial $60 billion opportunity in the development of EV charging infrastructure. With the accelerating demand for electric vehicles in the U.S. and supportive infrastructure incentives, projections indicate that between 1.1 million and 5.7 million chargers must be installed by 2030, a significant increase from the current 130,000 installations, as indicated by UBS. This drastic increase will inevitably lead to a considerable uptick in copper demand, as highlighted by the bank’s analysts. In the current volatile markets, commodities are seen by some investors as an attractive investment option. For those interested in investing in copper, CNBC Pro conducted a screening for stocks within the Global X Copper Miners ETF and the Sprott Junior Copper Miners ETF. The analysis revealed stocks that have a projected upside to average price targets of at least 10%, along with buy ratings from over 50% of analysts monitoring them, according to data from FactSet. Among these, the Canadian mining company Los Andes Copper stood out with the highest potential upside of 70% and a unanimous buy rating from all covering analysts. Similarly, the copper and gold miner SolGold was the only other company to achieve a 100% buy rating, although its upside potential is slightly more restrained, exceeding 10%. Additionally, Filo Mining received the next highest potential upside from analysts, estimated at nearly 47%. — This report also includes contributions from CNBC’s Michael Bloom.
