Copper: Inducing A Sustainable Future

What’s the secret behind the eternal youth of Lady Liberty standing tall in New York for over a century?

The same dynamic element that has been used by humans for over 10,000 years: copper.

The French knew copper would be the ideal element for the Statue of Liberty’s outer layer—being lightweight, rustproof, and strong but easy to shape—when they crafted it as a gift to the U.S. in 1886.

Today, copper is considered the bellwether for the global economy. It is used extensively in electronic devices, electricity delivery and storage, transportation, communication, and manufacturing.

Many of its industrial applications are geared for exciting long-term growth, which makes copper immensely promising as a thematic investment opportunity.

Let’s look at a few of those applications.

Copper Is Driving the Electric Vehicle Revolution

Copper is prevalent in three key areas of electric mobility: energy storage, charging infrastructure, and vehicle production.

According to the International Copper Study Group (ICSG), electric vehicles (EVs) use approximately four times more copper than cars with internal combustion engines.1 Wood Mackenzie expects global EV sales to rise from 5% of all vehicle sales today to 50% by 2040.2 

This technological revolution is thus expected to invigorate the demand for copper. Copper demand in EVs could increase by a multiple of four within the next seven years (see figure 1 below).

Figure 1: Copper Demand From Electric Vehicles is Poised for Growth

Figure 1_Copper Demand From Electric Vehicles is Poised for Growth

Copper Is Powering Smart Cities

Smart cities are employing new information technology solutions to solve urban problems of housing, transportation, energy, and governance.

Examples of smart city applications include the deployment of smart traffic lights that use predictive analytics to improve traffic flow; smart buildings to improve energy efficiency, safety, and security; and the development of 5G Internet connectivity to promote the Internet of Things economy—a state in which multiple smart devices are interconnected.

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Disclaimer: Investors should carefully consider the investment objectives, risks, charges and expenses of the Funds before investing. U.S. investors only: To obtain a prospectus containing this ...

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