What is the "electrification" trend these stocks are connected to?

Electrification refers to the global shift toward using electricity (rather than fossil fuels) to power transportation, heating, and industrial processes. This transition requires massive upgrades to power grids and huge quantities of metals like copper and aluminum for wiring, components, and infrastructure. The stocks in this theme are companies that mine, process, or build these essential materials and systems.

Why are copper and aluminum so important for clean energy?

Copper is the best non-precious metal conductor of electricity, making it essential for wiring, motors, and transmission lines. A single electric vehicle uses 2-4 times more copper than a conventional car. Aluminum is lightweight, conductive, and used in solar panel frames, high-voltage transmission lines, and electrical components. Both metals are irreplaceable in building renewable energy systems and modernizing electrical grids.

What are "grid infrastructure" companies?

Grid infrastructure companies build, maintain, or upgrade electrical power networks that deliver electricity from generators to homes and businesses. These firms manufacture components like transformers, power lines, and switching equipment, or they might be utilities that own and operate the physical grid. As renewable energy grows and electricity demand increases, these companies play a crucial role in creating a more resilient and capable electrical system.

How do government policies affect these electrification stocks?

Government climate initiatives like the Inflation Reduction Act in the US and the European Green Deal direct billions in funding toward grid modernization, renewable energy, and electrification projects. These policies create predictable, long-term demand for the materials and components produced by companies in this theme, potentially supporting their growth for years or even decades.

What's the difference between metal producers and utilities in this theme?

Metal producers (like FCX, SCCO, AA) mine and refine the raw materials essential for electrical systems, while utilities (like NEE, SO, FE) build and operate the actual power generation and transmission infrastructure. This theme includes both types of companies because they represent different parts of the same value chain - the metals become the physical infrastructure that utilities then use to deliver electricity.

15 handpicked stocks

Electrification Essentials

Power up your portfolio with companies that form the backbone of our electric future. These carefully selected stocks represent firms providing the indispensable materials and infrastructure needed for the global energy transition.

Han Tan | Market Analyst

Updated 2 days ago | Published at juin 17