Biden’s Bet on the Future
If you can believe it, the two sides of our government agreed on something.
It came out last week that a group of senators agreed on an infrastructure package that would make much-needed improvements to things like roads and bridges, water, and transport, among other things.
President Biden built much of his candidacy on updating infrastructure in this country. Even though this plan isn’t 100% what he was after, it’s a step in the right direction and lays the foundation for another round of improvements further down the line.
The whole bill would cost around $973 billion over five years and $1.2 trillion over eight. $312 billion in new spending would be used for transportation projects.
That money would be split up over several different areas including mass transit, passenger and freight rail, airports, and seaports and railways.
Some of that money is being allocated for electric vehicle infrastructure and electric buses. This allows the president to work toward his goal of making EVs central to transportation in America.
It’s an inevitable future that’s been mentioned in these pages time and again. With each story, it seems like we’re rapidly accelerating toward that future faster and faster.
Laws are being passed by governments pledging clean energy futures. Car manufacturers are adjusting their lineups to reduce or eliminate the models that have combustion engines.
People are becoming more aware of alternative energy. And given how important transport is to the global economy, infrastructure measures like this are only the beginning.
It’s also only the beginning for the materials needed to make EVs and their infrastructure succeed.
Think about elements like lithium, copper, and nickel. These are just some of the metals that are needed to make these vehicles and this infrastructure possible. As demand climbs and EVs and the supporting infrastructure become more common, the companies that provide the metals behind them are going to do extremely well.
It’s one of the biggest investment stories that you don’t hear much about.
Here in the U.S. and throughout western Europe, government leaders are doing everything they can to establish their own supply chains for critical metals so that they don't have to rely on imports from China.
This is partly because Chinese leaders have tried to use their monopoly as leverage in their geopolitical ambitions. It also stems from concerns over what the Chinese government might learn about the technology these metals are used to create.
While those concerns have more to do with things like military technology and the trade secrets of big tech firms, it’s still an important thing to take note of as we move toward a future built around electric vehicles.
Establishing these China-free supply chains is one big part of the coming future of the electrification of everything. When it happens, the companies responsible for building the infrastructure and the companies that will benefit from the widespread adoption of renewables will take their rightful places as the market darlings of the next few decades.
Those companies and the services and products they offer will be just as diverse as the different metals needed to make all of this happen, but there are a few that stand out.
One company in particular will be the name everyone hears when it comes to upgraded infrastructure for electric vehicles, solar panels, and other advances in clean energy.
The patented technology it uses is safer, more reliable, and much more efficient than our current means of distributing power. That makes it ideal for the increased demand that will be created as the infrastructure package plays out over time.
It’s the kind of investment story you really have to seek out. Once you know all of the details, you’ll see just how profitable it can be to get in as early as possible.
Keep your eyes open,
Editor, Daily Profit Cycle
Ryan Stancil is an editor and regular contributor to Daily Profit Cycle. He’s been active in the financial publishing industry for more than half a decade, offering insights and commentary on technology and geopolitics to help readers make sense of the constantly changing landscape and how it affects their investments. His readers appreciate his "tell it as it is" writing style, where he always offers a fresh new perspective on what's happening in the market and leaves nothing unsaid.