Connect with us

Misc

Rebuilding America: The Coming Opportunity in Infrastructure

Published

on

It’s hard for most stakeholders to get excited about replacing an aging bridge.

Chaotic construction can disrupt the flow of traffic for many years, while annoying many of the local residents. Even worse, such projects usually go over budget, ultimately costing millions or even billions in taxpayer dollars.

At the end of the day, you have a new and improved bridge – but was it really worth all the hassle?

Rebuilding America

It’s not always easy to see short-term ROI in replacing aging infrastructure, especially when there are many other pressing challenges for society to tackle.

However, perpetually kicking the can down the road eventually leads to a situation that works in nobody’s favor. If streets, highways, rail, subways, airports, and bridges are all crumbling, the economy could eventually follow suit.

Rebuilding America: The Coming Opportunity in Infrastructure

According to the latest report card by the American Society of Civil Engineers (ASCE), infrastructure in America barely gets a passing grade with a mark of D+.

Here is how things break down, by specific type of infrastructure:

Infrastructure TypeGradeInfrastructure TypeGrade
RailBWastewaterD+
Solid wasteC+RoadsD
BridgesC+AviationD
PortsC+DamsD
EnergyD+Drinking waterD
Hazardous wasteD+Inland waterwaysD
SchoolsD+LeveesD
Public ParksD+TransitD-

The situation is grim – and the organization says that the country needs to spend an extra $2.1 trillion by 2025 to avoid making the situation worse.

Why Investors Should Care

Infrastructure is decidedly unsexy for investors.

However, it does come with some major benefits – in fact, JP Morgan Asset Management says that infrastructure investments tend to have low correlation with other asset classes, helping portfolio diversification. In addition, infrastructure is often protected from inflation, while providing a high yield and stable cash flows.

Here are some ways that regular investors can get access to the infrastructure sector:

  • Materials stocks: Millions of tonnes of cement, concrete, steel, and other materials will be needed
  • Construction and engineering stocks: These are the companies that will get the contracts to rebuild America
  • Heavy machinery manufacturer stocks: Heavy machinery will be needed to get construction jobs done
  • Infrastructure ETFs: Alternatively, there are thematic ETFs that build their funds around infrastructure

How will you try to play the coming infrastructure boom?

Click for Comments

Lithium

Ranked: The Top 10 EV Battery Manufacturers in 2023

Asia dominates this ranking of the world’s largest EV battery manufacturers in 2023.

Published

on

A treemap showing the top 10 EV battery manufacturers in 2023

The Top 10 EV Battery Manufacturers in 2023

This was originally posted on our Voronoi app. Download the app for free on iOS or Android and discover incredible data-driven charts from a variety of trusted sources.

Despite efforts from the U.S. and EU to secure local domestic supply, all major EV battery manufacturers remain based in Asia.

In this graphic we rank the top 10 EV battery manufacturers by total battery deployment (measured in megawatt-hours) in 2023. The data is from EV Volumes.

Chinese Dominance

Contemporary Amperex Technology Co. Limited (CATL) has swiftly risen in less than a decade to claim the title of the largest global battery group.

The Chinese company now has a 34% share of the market and supplies batteries to a range of made-in-China vehicles, including the Tesla Model Y, SAIC’s MG4/Mulan, and various Li Auto models.

CompanyCountry2023 Production
(megawatt-hour)
Share of Total
Production
CATL🇨🇳 China242,70034%
BYD🇨🇳 China115,91716%
LG Energy Solution🇰🇷 Korea108,48715%
Panasonic🇯🇵 Japan56,5608%
SK On🇰🇷 Korea40,7116%
Samsung SDI🇰🇷 Korea35,7035%
CALB🇨🇳 China23,4933%
Farasis Energy🇨🇳 China16,5272%
Envision AESC🇨🇳 China8,3421%
Sunwoda🇨🇳 China6,9791%
Other-56,0408%

In 2023, BYD surpassed LG Energy Solution to claim second place. This was driven by demand from its own models and growth in third-party deals, including providing batteries for the made-in-Germany Tesla Model Y, Toyota bZ3, Changan UNI-V, Venucia V-Online, as well as several Haval and FAW models.

The top three battery makers (CATL, BYD, LG) collectively account for two-thirds (66%) of total battery deployment.

Once a leader in the EV battery business, Panasonic now holds the fourth position with an 8% market share, down from 9% last year. With its main client, Tesla, now sourcing batteries from multiple suppliers, the Japanese battery maker seems to be losing its competitive edge in the industry.

Overall, the global EV battery market size is projected to grow from $49 billion in 2022 to $98 billion by 2029, according to Fortune Business Insights.

Continue Reading
Visualizing Asia's Water Dilemma

Subscribe

Popular