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Investor Playbook: How to Play the Resource Transition - FREE Webinar

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The resource transition, moving the U.S. and other nations away from fossil fuels and toward renewable energy and sustainability, is well underway and just in its beginning stages.

“We’ve run the first mile of the marathon,” according to Shawn Reynolds, Portfolio Manager for VanEck’s Global Resources ETF ( (GHAAX) - Get Van Eck Global Resources A Report). “If we’re going to win that race, we’re probably going to have to work harder than we ever had before.” While challenging, the $110 trillion, decades-long transformation unfolds in an environment extraordinarily favorable for investors.

TheStreet brought Reynolds together with three additional top experts for a deep dive into the resource transition. Investor Playbook: The Resource Transition, an hour-long webinar tackles the challenges and opportunities, many of which are both.

Susan McGinnis hosted the all-star team of portfolio managers and analysts which includes: 

  • Shawn Reynolds, Portfolio Manager for VanEck’s Global Resource Fund GHAAX and Environmental Sustainability Fund ENVAX, VanEck
  • Ammar James, Deputy Portfolio Manager, and Analyst focused on agriculture, paper, and forest, VanEck
  • Veronica Zhang, Deputy Portfolio Manager, and Analyst focused on renewable energy, VanEck
  • Charl Malan, Senior Analyst, focused on minerals and metals, VanEck

Related: Greenflation Fuels Investing Opportunities in 2022

Key Moments | Investor Playbook: The Resource Transition

One key challenge: energy storage. Embracing intermittent renewable energy sources such as solar and wind requires new technology and a manufacturing ramp-up. Veronica Zhang, VanEck Analyst and Deputy Portfolio Manager of VanEck’s Environmental Sustainability Fund (ENVAX) says manufacturers aren’t growing fast enough.

“We need a lot more supply to meet anticipated demand. You’re seeing Volkswagen, GM, Ford, all coming out with lofty targets for the next 5-10 years. We need a lot more batteries.“

Quote by Veronica Zhang, Deputy Portfolio Manager, and Analyst focused on renewable energy, VanEck

Quote by Veronica Zhang, Deputy Portfolio Manager, and Analyst focused on renewable energy, VanEck

Crucial to next-generation batteries among other clean energy products: access to metals and minerals. The World Bank estimates production of minerals including lithium and cobalt could skyrocket 500% by 2050 to meet the growing demand for clean energy technologies.

“We are at the infant stage of a very long-term investment opportunity,” says Charl Malan, a VanEck Senior Analyst focused on minerals and metals. Malan describes a “resources grab” among nations to ensure access.

Quote by Charl Malan, Senior Analyst, focused on minerals and metals, VanEck

Quote by Charl Malan, Senior Analyst, focused on minerals and metals, VanEck

In many areas, governments are mandating investment in the clean energy arena. The Biden administration wants 50% of all new vehicles sold in 2030 to be EV or plug-in hybrids. Tough new vehicle emissions requirements could hasten the adoption of EV’s. California now mandates that every new single-family home built must be wired for solar, a boon for solar panel developers. “Governments are mandating investment in these areas,” says Reynolds. “But some industries and companies are doing this because it’s good for themselves.“

Quote by Shawn Reynolds, Portfolio Manager for VanEck’s Global Resource Fund GHAAX and Environmental Sustainability Fund ENVAX, VanEck

Quote by Shawn Reynolds, Portfolio Manager for VanEck’s Global Resource Fund GHAAX and Environmental Sustainability Fund ENVAX, VanEck

Ammar James, Deputy Portfolio Manager focused on agriculture, says the resource transition cannot move forward without addressing the needs of a growing population and future land use. James says many exciting things are happening in food science innovation, precision agriculture, and agricultural sustainability. “Everything from companies focused on seed genetics to sustainable fertilizers, sustainable crop chemicals, environmentally sustainable food packaging. It’s happening right in front of us, and there’s a lot of opportunities there.”

Quote by Ammar James, Deputy Portfolio Manager, and Analyst focused on agriculture, paper, and forest, VanEck

Quote by Ammar James, Deputy Portfolio Manager, and Analyst focused on agriculture, paper, and forest, VanEck

For more on how the resource transition is presenting unprecedented opportunities for investors, Watch the full webinar.

Video Highlights | Investor Playbook: The Resource Transition

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