As the shift to alternative energy continues to gain momentum, Britain is one of the latest countries to ally with other nations. In this case, that nation is Zambia.
Britain’s foreign minister James Cleverly recently visited Zambia to strike deals on clean energy and critical minerals. Other nations are also looking to harness the resources of other countries that are rich in critical minerals supply.
“The foreign ministry said Cleverly would agree a UK-Zambia Green Growth Compact, aimed at generating 2.5 billion pounds ($3.17 billion) of British private sector investment in Zambia’s mining, minerals and renewable energy sectors alongside 500 million pounds of government-backed investments,” Reuters reported.
In the case of Zambia, the country is prolific in its copper supply. It also has deposits of other critical minerals such as cobalt, manganese, and nickel. Britain isn’t stopping with Zambia. It intends to collaborate with other nations, including the United States, Japan, Australia, Kazakhstan, and Saudi Arabia.
“The UK-Zambia Green Growth Compact and our landmark agreement on critical minerals will support investment between UK and Zambian business, creating jobs in both countries,” Cleverly said.
A Critical Minerals ETF With Global Exposure
To capture this global growth in critical minerals, one exchange traded fund (ETF) worth mentioning is the Sprott Energy Transition Materials ETF (SETM). SETM presents investors with an opportunity to capture the growth. It focuses on companies positioned upstream in the supply chain that stand to benefit from the increased investment in the critical minerals required for the clean energy transition.
SETM seeks to provide results that correspond to the total return performance of the Nasdaq Sprott Energy Transition Materials Index. The index tracks the performance of a selection of global securities in the energy transition materials industry.
As more countries look to forge partnerships, the global reach of SETM is crucial. The fund includes exposure to a variety of holdings in various countries, including the United States, Canada, Australia, and Chile.
Furthermore, that diversification flows into the market cap focus of its holdings. As of July 31, almost 40% of its capital resides in mid-cap holdings, 33% in large-caps, and 28% in small-caps, giving the fund a balanced exposure of growth as well as stability.
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