Key Points:

• Smallcase Type: Equity Thematic
• Suitable For: Long Term Investors
• Risk Profile: Aggressive
• Recommended Holding Period: 3 to 5 Years and more.
• Recommended Investment: Upto 10% of your Equity allocation.

Rationale:

• The global economy is shifting from dependence on crude oil to rare earths and strategic minerals - the essential building blocks of electric vehicles, advanced electronics, renewable energy, and defense systems.
• Elements such as Neodymium, Lithium, and Cobalt are critical for magnets, batteries, and chips powering the next wave of industrial innovation.
• Governments worldwide are racing to secure supplies, with India and the U.S. jointly advancing initiatives like the Mineral Security Partnership to strengthen supply chains and recover valuable minerals from existing industries.
• India is proactively acquiring international mining rights in countries such as Australia, Argentina, Chile, and Mozambique, positioning itself as a future hub for critical mineral processing and trade.
• A well-chosen basket of rare earth and strategic mineral stocks provides exposure to a rapidly expanding sector driven by clean energy mandates, digital transformation, and national security priorities - a compelling opportunity for long-term growth investors.

Disclosure:

• https://arthscience.in/disclosures/