Context

The critical metals sector covers all rare metals such as nickel, cobalt, aluminum, and lithium. Mobility includes all solutions and services for the transportation of people and/or goods.

Critical Metals

Over the last few years, we have observed a shift in how capital is allocated to critical minerals. We are witnessing the emergence of government stockpiling initiatives, accompanied by increased funding for non-Chinese projects and a greater focus on security of supply, even when this comes at the expense of economic incentives. Broadly speaking, investor focus has shifted from battery-related minerals to those linked to defense and overall sovereignty issues.

The geopolitical landscape has also created supply chain tensions. Aluminium is a notable example, with the Middle East region accounting for approximately 20% of the global trade of this metal. As aluminium production in the Middle East has declined, the alumina market has entered a state of oversupply. Sulphur, an often-overlooked mineral, has come to the fore, with the Middle East representing 40% of global production. This reagent is required for refining various metals, including nickel, lithium, and copper.

Mobility

Mobility is being reshaped by an increasing polarization of global trade, fueled anew by US tariffs and a supply chain that has never fully recovered from the shockwaves of COVID-19 and its aftermath. This dynamic is compounded by regulatory uncertainty, as non-linear trajectories in sustainable transport requirements reduce visibility, making operational and strategic flexibility increasingly valuable.