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Batteries and the Energy Transition with Kevin Baum

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Host Peter Krull sits down with Kevin Baum, Chief Investment Officer at USCF Investments, to delve into the role of batteries, minerals, and sustainability in the energy transition.

Broadcasting from the Future-Proof Retreat at the Broadmoor in Colorado Springs, Colorado, the conversation begins with Baum recounting his journey from Oppenheimer Funds in the early ’90s, where he helped launch one of the first commodity mutual funds, to his current role at USCF Investments.  

Baum’s early interest in investing was inspired by his grandfather, who worked for ExxonMobil for 42 years, and his career path naturally gravitated towards commodities, given his family’s background in agriculture and energy.

USCF Investments is renowned for its commodity-focused approach, initially with products like the USO oil fund, and has since expanded to include natural gas and copper products. Recently, USCF has been pivoting towards sustainable commodities, reflecting the global shift towards sustainability.

Baum discusses the historical energy shifts—from wood to coal, to oil and gas, and now towards electrification. He acknowledges that while oil and gas remain relevant, the transition to electric energy is accelerating. Despite some negative perceptions around electric vehicle (EV) growth, the global trend is undeniable, with 14 million EVs sold last year and an anticipated 20-25% year-on-year growth.

USCF’s investment strategy mirrors this transition, focusing on direct exposure to battery metals through futures contracts. Their portfolio, marked by the ticker symbol ZSB, includes lithium, cobalt, nickel, and copper, complemented by equity exposure to metals like graphite and rare earth, where futures are unavailable.

The discussion also highlights China’s dominance in metal production and processing and the efforts made by the US and Europe, driven by policies like the Inflation Reduction Act, to reduce dependency on Chinese sources. Baum addresses the environmental concerns and emphasizes the need for current technologies to support the energy transition and combat climate change.

Baum remains optimistic about the global commitment to reducing emissions and adopting renewable energy sources. He believes the economic viability of these technologies will drive their adoption, offering a hopeful outlook for the future.

Peter concludes the episode by emphasizing the importance of sustainable investments and their positive impact on the planet. Kevin Baum’s insights provide a compelling case for investing in the energy transition and the opportunities it presents.

If you’re interested in learning more about Kevin’s perspective and the role of batteries in the energy transition, listen to the full episode here.

Don’t miss our previous episodes with distinguished guests.

  • Ken LaRoe, founder, CEO, and Chairman of Climate First Bank speaks on the evolution of green banking 
  • Rachel Robasciotti, the CEO and Founder of Adasina Social Capital dives deep into the heart of sustainable and responsible investing with a focus on social justice. 
  • Jenny Coombs, the Director of Client Success at Ethos ESG and the founder of The Chartered SRI CounselorSM (CSRIC®) designation.

We value your insights and welcome suggestions for future podcast guests. Please share your feedback with us at info@earthequityadvisors.com. 

 

Be good. Invest better.

The Earth Equity Team.