Thematic Investing
Smart Materials
As populations and industries grow, they consume more, creating serious strains on finite natural resources. The Smart Materials strategy invests in innovative materials and manufacturing processes that enable industries to create more output with less input and restore the balance between resource demand and economic growth.
USD billion, the market size of minerals needed for the energy transition (in 2023)
million, expected shortage of manufacturing workers by 2025
USD billion, expected spending on semiconductor equipment in 2027
Why invest in smart materials?
Innovative materials involve specialized engineering to create new and better materials that reduce resource strain, energy use and emissions. Beyond materials, smart manufacturing applies digital solutions to improve manufacturing efficiency reducing costs and waste while also improving worker safety and product quality.
The strategy
Smart Material investments include companies creating synthetic composites that can be substituted or blended with traditional feedstocks, to reduce virgin content and the energy and emissions associated with mining and processing. It’s also investing in simulation software, robotics, and automation to optimize product design, increase productivity and reduce waste on the factory floor. Industrial recycling is also a critical category so that used materials can find new life.