Investor Playbook: How to Play the Resource Transfer – FREE Webinar

The resource shift that is moving the US and other nations away from fossil fuels and towards renewable energies and sustainability is in full swing and just beginning.

“We ran the first mile of the marathon,” says Shawn Reynolds, Portfolio Manager for VanEcks Global Resources ETF ( (GHAAX) – Get a report on Van Eck Global Resources). “If we want to win this race, we will probably have to work harder than ever before.” The decade-long $ 110 trillion transformation is challenging, but it is happening in an exceptionally favorable environment for investors.

TheStreet brought Reynolds together with three other top experts to get an in-depth look at the resource shift. Investor Playbook: The Resource Transfer, a one-hour webinar explores 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 VanEcks Global Resource Fund GHAAX and funds for ecological sustainability ENVAX, VanEck
Ammar James, Assistant Portfolio Manager and Analyst with a focus on Agriculture, Paper and Forestry, VanEck
Veronica Zhang, deputy portfolio manager and analyst with a focus on renewable energies, VanEck
Charl Malan, Senior Analyst, Minerals and Metals, VanEck

Related: Greenflation encourages investment opportunities in 2022

Key moments | Investor Playbook: The Resource Transfer

A central challenge: energy storage. The use of intermittent renewable energy sources such as sun and wind requires new technologies and a ramp-up of production. Veronica Zhang, VanEck Analyst and Deputy Portfolio Manager of VanEcks Environmental Sustainability Fund (ENVAX) says manufacturers are not growing fast enough.

“We need a lot more supply to meet the expected demand. You see Volkswagen, GM, Ford all coming out with lofty goals for the next 5-10 years. We need a lot more batteries. ”

Quote from Veronica Zhang, deputy portfolio manager and analyst with a focus on renewable energies, VanEck

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

“We are at the beginning of a very long-term investment opportunity,” says Charl Malan, senior analyst at VanEck with a focus on minerals and metals. Malan describes a “robbery of resources” between nations to ensure access.

Quote from Charl Malan, Senior Analyst, Focuses on Minerals and Metals, VanEck

In many areas, governments are mandating investments in clean energy. The Biden government wants 50% of all new vehicles sold in 2030 to be electric vehicles or plug-in hybrids. Strict new emissions regulations for vehicles could accelerate the adoption of electric vehicles. California now mandates that every newly built single family home must be wired for solar, a boon for solar panel developers. “Governments mandate investment in these areas,” says Reynolds. “But some industries and companies do this because it is good for them.”

Quoted from Shawn Reynolds, Portfolio Manager for VanEck's Global Resource Fund GHAAX and Environmental Sustainability Fund ENVAX, VanEck — Quote from Shawn Reynolds, Portfolio Manager for VanEcks Global Resource Fund GHAAX and funds for ecological sustainability ENVAX, VanEck

Ammar James, assistant portfolio manager with a focus on agriculture, says resource transition cannot proceed without addressing the needs of a growing population and future land use. James says a lot of exciting things are happening in the areas of food innovation, precision farming, and agricultural sustainability. “Everything from companies that focus on seed genetics, to sustainable fertilizers, sustainable plant chemicals, to environmentally friendly food packaging. It happens right in front of our eyes and there are many possibilities there. “