16 Stocks that are Benefitting from the Inflation Reduction Act
The Inflation Reduction Act (IRA) has had a massive impact on the U.S. electric vehicle (EV) market.
Particularly in terms of investment flowing into the space.
According to EDF data, $92.3 billion in investment announcements, representing 56% of all announced electric vehicle investments, have occurred in the 12 months since the passage of the IRA.
And while this is great news for car makers focusing heavily (or exclusively) on EV manufacturing, such Tesla (NASDAQ: TSLA), Ford (NYSE: F), GM (NYSE: GM), and Hyundai (OTCBB: HYMTF), it’s even better news for the mining companies providing the necessary materials to produce these EVs, as well as all the renewable energy technologies that are also being bolstered by billions of dollars from the IRA.
In fact, S&P Global recently published a new report showing how the IRA has impacted the North American metals and minerals market.
Here are some of its key findings …
What’s interesting about this is that in order to be in compliance with sourcing requirements of the IRA, nickel, lithium, cobalt and copper must be produced in the US or FTA countries. (i.e. – countries with which the U.S. has comprehensive free trade agreements. These include:
This is why we’re focused primarily on EV and renewable energy-related mining stocks that are either operating in the U.S. or FTA countries. These include, but are not limited to …
Albemarle (NYSE: ALB)
SQM (NYSE: SQM)
Pilbara Minerals (OTCBB: PILBF)
Freeport-McMoRan (NYSE: FCX)
Glencore (OTCBB: GLNCY)
Lundin Mining (TSE: LUN)
Southern Copper (NYSE: SCCO)
Rio Tinto (NYSE: RIO)
Newmont Corporation (NYSE: NEM)
BHP Group (NYSE: BHP)
Vale (NYSE: VALE)
Also keep an eye on Stellantis (NYSE: STLA), which just invested $100 million into a California geothermal lithium project.
Bottom line: demand for nickel, cobalt, lithium, and copper produced in the US or FTA countries is going to be off the charts for the next ten years. And if you play your cards right, you can make a boatload of cash in the process.