Make Kitco Your Homepage

These are the commodities that will boom in EV transition - Kendra Johnston

Kitco News

(Kitco News) - As the world transitions into the electrical vehicle revolution, there will be a number of investment opportunities for commodities used in that transition. "There's huge opportunities for some of those critical minerals that are needed for electrification for the low carbon future for the green economy," Kendra Johnston, President and CEO of AME explained.

"We absolutely need to explore more, find more of these commodities that are not only economic, but also that could be produced in an environmentally sustainable and socially responsible way."

Johnston spoke to David Lin, Anchor at Kitco News about trends in the mining and resource sector. The Association for Mineral Exploration, (AME) is the main association for the mineral exploration and development industry based in British Columbia.

In terms of whether we have enough supply of the base metals needed for the transition over the next 15 years, Johnston pointed out it varies on the commodity. "For example, with a commodity like copper, there's a pretty good supply out there. We need to keep up the mining that we are currently at, in order to be able to maintain. And we really need to increase the supply for where we want to be in the future," she said.

Johnston discussed the exploration of those minerals and metals that are needed for the transition to electric vehicles. "As an exploration community we have been actively looking for the last 20 to 30 years for those minerals. Copper is an obvious one, but there's many others like molybdenum, lithium, and cobalt, the list goes on and on," she disclosed. "Those are the metals that we are already on the way to finding. Hopefully, we can identify some of them, build out those resources and pass them onto the miners so they can start producing."

Gold price needs 7% inflation to really move, and we have that now - Jeff Christian

Regarding investing in this space, Johnston said, "There's still a bit of understanding that needs to happen with these commodity markets, but there's a lot of very smart investors out there who have figured out how a single new deposit will impact the supply demand curves for those metals and minerals," she emphasized. "From a geologist and retail perspective, I am not sure that understanding is there yet. There's lot of opportunity to dive in and to find some of those new minerals."

Looking ahead to the future for these base metal markets, Johnston is very optimistic. She revealed there are "new deposits to be found. There are new technologies that will be coming, that will be able to connect the minerals and metals that we have, in order to produce some of these new technologies that just haven't been developed yet. It's getting stronger all the time."

For more on trends in the mining and resource sector, please watch the full video above.

Follow David Lin on Twitter: @davidlin_TV

Follow Kitco News on Twitter: @KitcoNewsNOW

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.