Commodities are often overlooked in a young investors portfolio. They should not be!

 Investors looking for stability and lucrative returns over the next two years, I would rank these natural resources in the following order, considering supply-demand dynamics, geopolitical risks, energy transition trends, and industrial importance:

Ed Note: 

We are currently invested in companies producing 5 of these commodities.

1. Uranium

• Bullish Case: Nuclear energy is experiencing a renaissance, with increasing global support for clean energy. Supply is constrained, and demand is rising with new reactor projects and small modular reactors (SMRs).
• Key Players: Cameco (CCJ), Kazatomprom, NexGen Energy (NXE).
• Risk: Some policy risks if governments shift focus.

2. Copper

• Bullish Case: Essential for electrification (EVs, power grids, renewables), and long-term supply deficits are expected due to lack of new mines. Prices have remained strong.
• Key Players: Freeport-McMoRan (FCX), Southern Copper (SCCO), BHP.
• Risk: Short-term recession could dampen demand.

3. Oil

• Bullish Case: Despite the energy transition, oil demand remains strong. OPEC+ supply cuts and geopolitical risks (Middle East conflicts, Russia sanctions) keep prices elevated.
• Key Players: ExxonMobil (XOM), Chevron (CVX), Saudi Aramco.
• Risk: Demand destruction if global economic slowdown occurs.

4. Natural Gas

• Bullish Case: Europe's pivot away from Russian gas, LNG export growth (U.S. to Europe/Asia), and continued reliance on gas as a transition fuel.
• Key Players: Cheniere Energy (LNG), EQT Corp (EQT).
• Risk: Overproduction could lower prices, mild winters reduce demand.

5. Lithium

• Bullish Case: EV demand remains strong, but overproduction has led to price volatility. Long-term supply chain constraints could tighten the market again.
• Key Players: Albemarle (ALB), SQM, Lithium Americas (LAC).
• Risk: High volatility, price declines if demand slows.

6. Rare Earths

• Bullish Case: Critical for defense, electronics, and EVs. China dominates supply, but Western nations are ramping up production. Supply chain security remains a priority.
• Key Players: MP Materials (MP), Lynas Rare Earths (LYC).
• Risk: Geopolitical uncertainty; rare earth processing is complex.

7. Nickel

• Bullish Case: Needed for EV batteries and stainless steel. Supply disruptions in Indonesia and Russia could support prices.
• Key Players: Vale (VALE), Norilsk Nickel, BHP.
• Risk: EV battery chemistry shifting away from high-nickel designs.

8. Gold

• Bullish Case: Inflation hedge, central bank demand, and safe-haven asset during global uncertainties.
• Key Players: Barrick Gold (GOLD), Newmont (NEM).
• Risk: Interest rate cuts could impact returns.

9. Water

• Bullish Case: Scarcity makes it an essential resource. Water infrastructure, desalination, and privatization could drive investment.
• Key Players: American Water Works (AWK), Veolia (VEOEY).
• Risk: Regulatory constraints on private water ownership.

10. Potash

• Bullish Case: Fertilizer demand is steady due to global food security concerns.
• Key Players: Nutrien (NTR), Mosaic (MOS).
• Risk: Agricultural cycles can impact demand.
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Final Thoughts:

For a balanced, stable, and profitable investment in natural resources over the next two years, Uranium, Copper, and Oil seem the strongest plays due to demand-supply imbalances and global energy trends. Natural Gas and Lithium are also good, but face short-term price volatility. Rare Earths and Nickel are critical, but geopolitical risks and tech advancements could impact pricing. Gold, Water, and Potash are more defensive but lack aggressive upside.

ATI Inc., is a growing supplier of specialty metals and additives to the Defense and Areospace Sectors!

 

As of February 24, 2025, ATI Inc. (NYSE: ATI) stands as a prominent producer of high-performance materials and solutions, primarily serving the aerospace, defense, electronics, medical, and specialty energy markets.

Financial Overview:

• Fourth Quarter 2024: ATI reported sales of $1.17 billion, marking a 10% increase year-over-year. Net income attributable to ATI was $137.1 million, or $0.94 per share.

  prnewswire.com

• Full Year 2024: The company achieved sales of $4.4 billion, the highest since 2012, representing a 5% increase from 2023. Operating cash flow for 2024 was $407 million, a significant rise from $86 million in 2023. Free cash flow increased by 50% to $248 million.

  stocktitan.net

• Cash Position: ATI maintained a strong cash position with $721 million at year-end 2024.

  stocktitan.net

Technological Advancements:

In 2024, ATI commissioned a state-of-the-art Additive Manufacturing Products facility in Margate, Florida. This 132,000-square-foot facility enhances ATI's metal additive manufacturing capabilities, featuring large-format printing capable of producing parts up to 1.5 meters tall with complex geometries. The facility integrates design, printing, heat treating, machining, and inspection processes under one roof, streamlining production for aerospace, defense, and space markets.

stocktitan.net

Clients and Partnerships:

ATI has secured significant contracts, including a notable agreement with Bechtel Plant Machinery Inc. (BPMI) for the U.S. Naval Nuclear Propulsion Program. This partnership underscores ATI's commitment to delivering high-quality, specialized materials for critical defense applications.

stocktitan.net

Stock Performance:

As of February 24, 2025, ATI's stock is trading at $57.15 per share. The company has demonstrated a robust financial trajectory, with a 10% year-over-year increase in fourth-quarter sales and a 5% rise in annual sales for 2024. ATI's strategic focus on the aerospace and defense sectors, combined with its technological advancements and strong financial management, positions it favorably for sustained growth in the high-performance materials market.

ATI Inc (ATI)

$57.15

+$41.66(+268.95%)Past 5 years

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ATI Inc. (NYSE: ATI) continues to focus on its primary sectors, notably aerospace and defense, where it has made significant investments to enhance its titanium production capabilities.

Key Investments in Titanium Production:

• Richland, Washington Expansion: In July 2023, ATI announced an expansion of its titanium melting operations in Richland, Washington. This initiative aims to increase the company's production of aerospace and defense-grade titanium by approximately 35% over 2022 levels, addressing the growing demand in these sectors.

  ir.atimaterials.com

• Bakers, North Carolina Forging Press: By March 2024, ATI commissioned a state-of-the-art 12,500-ton billet forging press in Bakers, North Carolina. This facility is critical for producing high-performance titanium components, particularly for aerospace applications.

  prnewswire.com

ATI Inc. (NYSE: ATI) maintains a diverse portfolio of contracts with both the U.S. government and various commercial entities, reflecting its extensive capabilities in specialty materials and services.

U.S. Government Contracts:

• Department of Defense (DoD): ATI Defense collaborates closely with U.S. defense departments and contractors, supplying specialty materials and armor products essential for applications such as airframes, jet engines, hypersonics, land vehicles, naval systems, and weaponry.

  atimaterials.com

• Department of State (DoS): Since 2014, ATI has been under a six-year Indefinite Delivery/Indefinite Quantity (IDIQ) contract to provide preventive maintenance, upgrades, and repair services for Building Automation Systems (BAS) at U.S. embassies and consulates worldwide.

  atiinc.com

• Department of the Treasury: In December 2024, ATI Government Solutions LLC secured a contract valued at approximately $19.84 million to provide engineering support for the Internal Revenue Service's (IRS) Office of the Chief Information Officer (OCIO) Direct File program.

  orangeslices.ai

• National Aeronautics and Space Administration (NASA): ATI Specialty Alloys & Components, LLC, a subsidiary of ATI, has been awarded contracts by NASA, including one in 2021, underscoring ATI's role in supplying specialized materials for aerospace applications.

  usaspending.gov

Commercial Contracts:

• Aerospace and Defense Sector: In June 2023, ATI announced securing approximately $1.2 billion in new sales commitments from leading aerospace and defense companies. These agreements, spanning from 2024 to 2029, involve the supply of nickel and titanium materials critical for commercial engine and airframe manufacturing, as well as ground-vehicle armor.
  prnewswire.com

These contracts and partnerships highlight ATI's strategic engagements across various sectors, emphasizing its commitment to delivering high-performance materials and services to both governmental and commercial clients.

How to invest in Robots and Robotics going forward, through the back door method!

 

Enovix ($ENVX on Nasdaq) has developed a unique new Li battery that will enhance safety, longevity and higher energy levels

(Forward: Many small investors cannot buy into Tesla directly nor any of the other "private" companies that are poised to charge into the robot industry.  However, there is always a back door!)

The evolution of robots and robotics will rely heavily on a range of raw materials, each contributing to various aspects of robot construction, functionality, and performance. Here are some of the key raw materials expected to be significant:

1. Metals and Alloys:

   • Steel: For structural components due to its strength and durability.
   • Aluminum: Used for lightweight structures, reducing the overall weight of robots.
   • Titanium: Valued for its high strength-to-weight ratio and corrosion resistance.
   • Copper: Essential for electrical wiring and components.

2. Semiconductors:

   • Silicon: Fundamental for electronic circuits, sensors, and microchips.
   • Gallium Arsenide: Used in high-speed electronics and optoelectronic devices.

3. Rare Earth Elements:

   • Neodymium: Critical for powerful permanent magnets used in electric motors and actuators.
   • Dysprosium: Enhances the performance of neodymium magnets, especially at high temperatures.

4. Composites and Polymers:

   • Carbon Fiber: Provides high strength and low weight for structural components.
   • Kevlar: Used for its toughness and resistance to impact and abrasion.
   • High-Performance Plastics: Such as PEEK (polyether ether ketone) and PTFE (polytetrafluoroethylene) for various mechanical and thermal applications.

5. Battery Materials:

   • Lithium: Central to lithium-ion batteries, which power many portable robots.
   • Cobalt, Nickel, and Manganese: Used in battery cathodes to improve energy density and stability.

6. Sensors and Actuators:

   • Piezoelectric Materials: Such as quartz or PZT (lead zirconate titanate) for precise motion control.
   • MEMS (Micro-Electro-Mechanical Systems): Often made from silicon and polymers for sensors and actuators.

7. Optical Materials:

   • Glass and Polymers: For lenses, cameras, and other optical sensors.
   • Silica: Used in fiber optics for communication and data transmission.

8. Conductive and Insulating Materials:

   • Gold and Silver: For high-conductivity electrical connections.
   • Ceramics: Used for insulation and high-temperature applications.

These materials collectively enable the development of more advanced, efficient, and capable robots, pushing the boundaries of what robots can do in various industries, from manufacturing and healthcare to exploration and service applications.

Now, imagine the amount of cars on the planet!  Now quadruple that for the robot revolution!

Now, imagine how much money is pouring in to this market even now, and how much money will be made in the coming years!

Why did Tesla purchase 2,000 lidar units from Luminar Technologies (Nasdaq: $LAZR)? What might they be used for?

How can small, retail investors, enter the burgeoning robotics industry that is mostly controlled at present by private companies that are out of their reach?

Luminar Technologies Inc (NASDAQ: LAZR) - AVs, Automation, Robotics and RoboTaxi's