07 January 2026
Copper, lithium, and now water are becoming strategic assets in a world rethinking physical supply and sovereignty.
Natural resources were once the domain of cyclical traders, overlooked by many as outdated or irrelevant. Today, they’re back in the spotlight, not just as commodities, but as critical inputs for global security, energy resilience, and sustainable growth.
As the world races toward electrification, reindustrialisation, and climate adaptation, capital is flowing back into what was once considered the “old economy.”
Now, it’s not just about extraction; it’s about control, scarcity, and long-term resilience. Today, investors are no longer asking what the market price is; they’re asking who has access and leverage, and who can build.
If AI is the headline, copper is the infrastructure - from electric vehicles to data centres, smart grids to offshore wind farms, copper is essential.
Every stage of the energy transition demands more of it: a single EV requires two to four times the copper of a petrol car, while solar panels and wind turbines are materially copper-intensive. Some experts predict that demand for copper will almost double by 2035, yet supply is hitting bottlenecks.
Behind the scenes, new copper mines take a decade or more to develop, and many are located in politically or environmentally complex jurisdictions. In parallel, investment in processing capacity has lagged, creating tension between ambition and reality and a supply curve that’s struggling to bend.
For investors, copper is no longer a pure China play or a construction proxy. It’s a structural allocation, backed by energy policy, climate targets, and infrastructure mandates. In that context, short-term price volatility matters less than long-term exposure to a core transition metal.
Of all the world’s natural resources, water may be the most mispriced and the most overlooked. For decades, it’s been seen through the lens of public service provision: low risk, low return, and heavily regulated. However, that perception is fading fast.
Climate change, population growth, and shifting consumption patterns are exposing water as a finite, fragile resource. California to South Asia and beyond, supply shocks are colliding with surging demand - not just from households and farms, but from chip foundries, data centres, and green hydrogen production. Consequently, investors are beginning to see water not just as an input but also as a constraint on future growth.
As you would expect, new markets are emerging in response. For example, water rights in Australia’s Murray-Darling Basin and parts of the U.S. are now actively traded.
Water-focused ETFs are also attracting inflows, offering exposure to treatment, infrastructure, and conservation technologies. Private equity and infrastructure funds are also circling desalination and wastewater reuse projects, often backed by long-term government financial support.
It’s crucial to recognise this is not a speculative theme; it’s a real asset, policy-aligned, climate-resilient thesis. And in many cases, it’s the water access embedded in farmland, industrial zones, or infrastructure that underwrites long-term value.
The common thread across this resource resurgence is clear: strategic control. The global economy is no longer only about access to capital or code; it’s about access to the materials that underpin both.
Let’s be clear, China’s dominance in rare earth processing wasn’t accidental. It was the result of a long-term industrial strategy. Now, Western nations are behind the curve, scrambling to catch up - reshoring supply chains, subsidising battery metals, and offering incentives for critical inputs.
Water, meanwhile, is politically sensitive. An age-old public backlash against privatisation, especially in regions facing acute shortages, adds a governance dimension that investors must navigate carefully. Still, the trend is undeniable: where water is scarce, value will follow.
In an increasingly intangible world, it’s the tangible that endures. The materials economy - long dismissed as backwards-looking - is becoming the infrastructure of the future.
Natural resources like copper and water are being revalued not just as commodities, but as strategic enablers of transition, growth, and resilience. For investors, this isn’t just a thematic idea; it’s a recalibration of how real assets fit into long-term portfolios.
Looking ahead, the most valuable resource may not be the one priced highest, but the one that cannot be substituted, replicated, or replaced. In that race, water and copper (to name just two) are moving from overlooked to essential.
The message is clear: if the future is to be built and sustained, investors must get comfortable owning what it depends on.
Back to News
+85221680685
Email Us
Client login
