This Copper Stock Could Be a Great Way to Invest in EVs
As a leader in copper production, Freeport McMoRan (NYSE: FCX) stands to take advantage of the global electric vehicle and renewable energy trends over the next decade. Here's why the stock could be a winner.
Freeport-McMoRan is already the third largest copper miner in the world. In 2020, it produced 1.45 million metric tons of copper, putting it close to Codelco at 1.73 million and BHP (NYSE: BHP) at 1.72 million. Unlike other miners, it's expanding. The company is near completion of a project that will add 2 million tons of annual copper capacity to its Indonesian operation. The project could allow Freeport to more than double its 2020 output and possibly supplant the incumbents. The company may need all that copper and more, since Freeport estimates that by 2032, the world will need 6.4 million more tons of copper each year than it produces.
Other miners won't be able to quickly ramp up capacity, either. Freeport committed to its Indonesia expansion in 2018 and expects it to be completed by 2024. Rival copper may be playing catch-up for several years while Freeport reaps the rewards of an intensifying worldwide electrification trend, and the copper it requires.
Source Fool.com
