Energy
Infrastructure Boom: 5 Ways Investors Can Play It
Infrastructure Boom: 5 Ways Investors Can Play It
View the high resolution version of today’s graphic by clicking here.
The world needs infrastructure, and the world needs it soon.
It’s not just about replacing aging pieces of infrastructure like bridges and roads – it’s also about developing modern infrastructure that enables new technology, faster communications, and our ability to use, move, and transmit energy from renewables and natural gas.
Today’s infographic comes to us from Miller Howard Investments and it details five specific ways that investors could play the coming infrastructure boom.
Five Ways to Play The Infrastructure Boom
Here are some of the happening areas within infrastructure, and why:
1. Utilities
The utilities sector will by driven by growth in EVs, renewable energy, abundance of U.S. oil and gas, and smart grid technology.
- If all U.S. vehicles were EVs, it would mean an immediate 25% boost to electricity demand
- In 2016, more money was invested in solar and wind than all other electricity sources combined
2. Global Communications
Comms will be buoyed by the rapid growth of 5G, as well as the IoT and its impact on ecommerce.
- Wireless data use: 96 exabytes per month (EB/mo) to 278 EB/mo between 2016 and 2021
- The U.S. will capture the largest share of the 5G value chain
3. Energy Infrastructure
Aging infrastructure needs to be updated, while more capacity for electric and O&G transmission is needed.
- Between 2013-2030, it’s estimated $4.64 trillion will need to be invested in U.S. energy infrastructure
- By 2035, the U.S. will have net exports of 35 billion cubic feet (Bcf) per day of natural gas
4. Transportation and Logistics
More goods need to get to more places. Transportation and logistics will benefit tremendously from the growth of ecommerce, smart warehouses, cloud-based logistics-as-a-service, and delivery innovation.
- By 2020, global ecommerce sales is expected to eclipse the $4 trillion mark
- Parcel shipment volume is accelerating to grow at a higher rate each year
5. Enablers
Big data, 5G and IoT, and increased automation are enabling bigger trends, such as EVs and smart homes.
- By 2040, it’s estimated that 54% of all new car sales will be electric
- Meanwhile, the internet of things is exploding to 75.4 billion things by 2025
Energy
Charted: 4 Reasons Why Lithium Could Be the Next Gold Rush
Visual Capitalist has partnered with EnergyX to show why drops in prices and growing demand may make now the right time to invest in lithium.
4 Reasons Why You Should Invest in Lithium
Lithium’s importance in powering EVs makes it a linchpin of the clean energy transition and one of the world’s most precious minerals.
In this graphic, Visual Capitalist partnered with EnergyX to explore why now may be the time to invest in lithium.
1. Lithium Prices Have Dropped
One of the most critical aspects of evaluating an investment is ensuring that the asset’s value is higher than its price would indicate. Lithium is integral to powering EVs, and, prices have fallen fast over the last year:
| Date | LiOH·H₂O* | Li₂CO₃** |
|---|---|---|
| Feb 2023 | $76 | $71 |
| March 2023 | $71 | $61 |
| Apr 2023 | $43 | $33 |
| May 2023 | $43 | $33 |
| June 2023 | $47 | $45 |
| July 2023 | $44 | $40 |
| Aug 2023 | $35 | $35 |
| Sept 2023 | $28 | $27 |
| Oct 2023 | $24 | $23 |
| Nov 2023 | $21 | $21 |
| Dec 2023 | $17 | $16 |
| Jan 2024 | $14 | $15 |
| Feb 2024 | $13 | $14 |
Note: Monthly spot prices were taken as close to the 14th of each month as possible.
*Lithium hydroxide monohydrate MB-LI-0033
**Lithium carbonate MB-LI-0029
2. Lithium-Ion Battery Prices Are Also Falling
The drop in lithium prices is just one reason to invest in the metal. Increasing economies of scale, coupled with low commodity prices, have caused the cost of lithium-ion batteries to drop significantly as well.
In fact, BNEF reports that between 2013 and 2023, the price of a Li-ion battery dropped by 82%.
| Year | Price per KWh |
|---|---|
| 2023 | $139 |
| 2022 | $161 |
| 2021 | $150 |
| 2020 | $160 |
| 2019 | $183 |
| 2018 | $211 |
| 2017 | $258 |
| 2016 | $345 |
| 2015 | $448 |
| 2014 | $692 |
| 2013 | $780 |
3. EV Adoption is Sustainable
One of the best reasons to invest in lithium is that EVs, one of the main drivers behind the demand for lithium, have reached a price point similar to that of traditional vehicle.
According to the Kelly Blue Book, Tesla’s average transaction price dropped by 25% between 2022 and 2023, bringing it in line with many other major manufacturers and showing that EVs are a realistic transport option from a consumer price perspective.
| Manufacturer | September 2022 | September 2023 |
|---|---|---|
| BMW | $69,000 | $72,000 |
| Ford | $54,000 | $56,000 |
| Volkswagon | $54,000 | $56,000 |
| General Motors | $52,000 | $53,000 |
| Tesla | $68,000 | $51,000 |
4. Electricity Demand in Transport is Growing
As EVs become an accessible transport option, there’s an investment opportunity in lithium. But possibly the best reason to invest in lithium is that the IEA reports global demand for the electricity in transport could grow dramatically by 2030:
| Transport Type | 2022 | 2025 | 2030 |
|---|---|---|---|
| Buses 🚌 | 23,000 GWh | 50,000 GWh | 130,000 GWh |
| Cars 🚙 | 65,000 GWh | 200,000 GWh | 570,000 GWh |
| Trucks 🛻 | 4,000 GWh | 15,000 GWh | 94,000 GWh |
| Vans 🚐 | 6,000 GWh | 16,000 GWh | 72,000 GWh |
The Lithium Investment Opportunity
Lithium presents a potentially classic investment opportunity. Lithium and battery prices have dropped significantly, and recently, EVs have reached a price point similar to other vehicles. By 2030, the demand for clean energy, especially in transport, will grow dramatically.
With prices dropping and demand skyrocketing, now is the time to invest in lithium.
EnergyX is poised to exploit lithium demand with cutting-edge lithium extraction technology capable of extracting 300% more lithium than current processes.
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