Sustainability & Energy Transition

The Price Is Right…But for Who?

February 7, 2025

Companies Mentioned: Freeport-McMoRan, BHP, Anglo American, Rio Tinto, Glencore, Albemarle, SQM, Ganfeng Lithium, Tianqi Lithium, Mineral Resources, Pilbara Minerals, Ørsted, Dominion Energy, POET, Valero, Green Plains, ADM, The Andersons, Tesla, Geely, Volkswagen
Commodities Mentioned: Copper, Lithium, Nickel, Cobalt, Ethanol, Antimony, Gallium, Germanium, Rare Earth Elements, Corn, Batteries, Biofuels, Wind Power, Solar Power

C-MACC Weekly Sustainability and Energy Transition Report

The Price Is Right…But for Who?

1^st Topic of the Week: We discuss recent weakness in the C-MACC critical mineral price index, why we continue to prefer copper over lithium, and our more constructive views of the commodities relative to producer equities.
2^nd Topic of the Week: Gone with the wind? We discuss the adverse Trump administration initiatives toward US offshore wind power, and the risk of some of these issues coming ashore stalling additional capacity growth.
Otherwise: We discussed the role of critical mineral recycling as a supply-gap filler in some markets, the push among EU automakers to shift emission policies, and highlight our current views of the ethanol market.

Exhibit 1: The C-MACC critical mineral price index was modestly lower MoM in January 2025, following a 2% decline in 2024 and a 53% drop in 2023; we take a cautious view of 2025, notable improvement could finally emerge in 2026.