New Energy Weekly – Battery Metals Producers Face Global Headwinds

The recent global political crises create headwinds for stock performance

I’ll use several charts to show you what I mean. Let’s start with our favorite battery metal: copper.

The Global X Copper Miners ETF (NYSE: COPX) is a great basket of copper producing companies. And as you can see from the chart below, the companies’ share prices fell significantly since August 2023.

This is due, in part, to the price of copper. This chart compares the percentage decline in copper price, compared to the COPX ETF:

The red line is the copper price, which is up 5.6% on the year. The price is down 15% from its high in January 2023. The black line is COPX, which is up 22.5% on the year, but down 30% from its high in April 2023.

This trend isn’t isolated to copper. It’s the same across the entire battery metals complex. The next chart is the Horizons Global Lithium Producers Index ETF (TSX: HLIT). It holds a basket of lithium producers. And like COPX, its shares collapsed since July 2023

And as you would expect, the rest of the battery complex looks the same. You can see it in the Amplify Advanced Battery Metals and Materials ETF (AMEX: BATT):

he share price of BATT is now at its lowest price since 2020, as you can see here:

This trend is setting us up for a renewed bull market. We need to keep an eye on these funds. They will tell us when the trend moves upward. That will be our cue to jump into this sector again.

Good Investing,

The Mangrove Investor Team