Company Interview / Stocks & ETFs for a critical metals edge

Key points:

Deglobalisation and geopolitical risk seen as catalysts for critical metals demand Supply of key materials viewed as heavily concentrated in a few countries Global X Rare Earth and Critical Metals Fund (ASX:GMTL) targets diversified exposure to ten critical metals

Justin Lin of Global X ETFs sets out a case for looking beyond high-profile AI and semiconductor names to the underlying “picks and shovels” of the transition: rare earths and critical metals. Lin argues that deglobalisation, export controls and geopolitical tensions are reshaping supply chains, putting long-term focus on the materials essential for economic growth and advanced technologies.

According to Lin, supply of key metals such as manganese, rare earth elements and platinum group metals is highly concentrated, with around half of global supply for many materials coming from just two producer countries. He notes that decades of investment have given China and other BRICS nations dominant positions in refining capacity, prompting governments and investors to seek diversification and de-risking of this concentration.

Lin highlights the Global X Rare Earth and Critical Metals Fund (ASX:GMTL), recently refocused from green metals to a broader basket of ten critical metals including copper, lithium, nickel, cobalt and manganese. Holdings include Freeport-McMoRan (NYSE:FCX), Ivanhoe Mines (TSX:IVN), Alcoa Corp (ASX:AAI) and Australian rare earths producer Lynas (ASX:LYC). Lin contends that limited supply, growing stockpiling by nations and rising institutional interest could support the long-term investment case for diversified exposure to critical materials.