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In a world reminiscent of “Blade Runner,” where the quest for new innovative energy technologies mirrors the search for synthetic life, essential metals have become a crucial aspect of the energy transition conversation. The S&P Global Essential Metals Producers Index can play a pivotal role in understanding this transition, as it measures the performance of stocks engaged in the mining or manufacturing of metals deemed essential to energy transition technologies.^1,2

Since its launch in August 2023, the S&P Global Essential Metals Producers Index has underperformed the S&P Global BMI Metals & Mining (Industry) by 15.4%. However, more recently, the index’s performance showed signs of recovery, outperforming the S&P Global BMI Metals & Mining (Industry) in 2024. This positive shift aligned with the increasing performance of the S&P GSCI Copper and the S&P GSCI Aluminum, underscoring the surges in prices for these essential metals. Exhibit 1 summarizes this recent upward trend over the one-year period ending Jan. 31, 2025.
 

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Within this timeframe, the S&P Global Essential Metals Producers Index increased 1.8%, outperforming the S&P Global BMI Metals & Mining (Industry) Index by 1.1%.

A closer examination reveals the impact of copper and aluminum producers on this recent outperformance, as these critical minerals form the backbone of the datacenters that are powering the skyrocketing demand for artificial intelligence.³ Exhibit 2 provides insights into the contributions to the 1.8% return of the S&P Global Essential Metals Producers Index, showcasing the average returns for the top five contributors and detractors among the index’s constituents. It also includes the average return for the five constituents closest to the median return contribution, for reference. The analysis categorizes these constituents based on their primary business products: copper & aluminum; a diverse mix of metals; and lithium & cobalt. The size of the circles indicates the magnitude of the positive contributions to the performance of the S&P Global Essential Metal Producers Index. A larger positive contribution results in a bigger circle, while a larger negative contribution is represented by a smaller circle.

 

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The results indicate that the top five contributors (contributing cumulatively 5.3%), which achieved an average return of 37.1%, focus primarily on copper and aluminum in their mining operations. On the other hand, the top five detractors (detracting cumulatively 4.5%), with an average return of -30.9%, depend on lithium or cobalt, or both, and might have struggled due to recent price declines linked to oversupply of these metals and technological shifts in battery production.^4,5, Interestingly, constituents positioned in the median category exhibited a diverse range of products rather than concentrating on particular metals.

As we progress, it can be intriguing to monitor the S&P Global Essential Metals Producers Index against the backdrop of the ongoing energy transition and technological advancements. The increased importance of essential metals may become a cornerstone of the transition, shaping our energy future. For those interested in further examining S&P DJI’s thematic sustainability indices, additional details can be found in the Sustainability Index Dashboard.

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