I haven’t been this excited about a trend in decades.
That’s why I flew out to Australia for on-the-ground research…
See, Australia is the 14th-largest economy in the world. It produces 19 useful minerals from over 350 mines.
It’s one of the world’s leading producers of iron, lithium, gold, uranium, and zinc, among many others.
During my trip, I’m meeting important contacts in the natural resources industry.
And what I’ve discovered from my conversations is this…
Australia is at the crosshairs of the two largest economies – and adversaries – in the world.
And as I’ll get to in a moment, that’s set to unleash a powerful megatrend for years to come.
At the Forefront of Transformation and Innovation
First, greetings from the land down under. While I’m in Australia, I stopped by the iconic Sydney Opera House.
It’s an intense feat of engineering and architecture. The building is made from reinforced concrete. And the facades are polarized glass with steel frames.
The right materials can drive transformation and innovation. The Sydney Opera House is a striking example of that.
And it’s exactly that kind of transformation that brought me to Australia.
Nomi flies out to Australia for boots-on-the-ground research
As I mentioned, I’ve had meetings with folks here… from policymakers and business leaders to miners and engineers.
See, Australia is one of the G20 countries. That’s the premier forum for international economic cooperation.
And today, it’s at a crossroads on the global stage.
Australia has a close trade relationship with China. And it has a strategic relationship with the United States.
That puts it in the crosshairs of the world’s two largest economies and adversaries.
For the United States, this strategic position matters. That’s because the U.S. is Australia’s largest foreign investor. So when Australia wins, the U.S. wins.
And now, as I’ve been confirming through my conversations here… Australian exports will see even higher demand from key U.S. companies.
That’s thanks to the Inflation Reduction Act.
Because these firms must now use materials sourced either from the U.S… or from U.S. Free Trade Agreement allies. Australia is one of those allies.
A Major Producer of Critical Resources
Trade relations between the U.S. and Australia have boomed since 2005. That’s when the Australia-United States Free Trade Agreement was first established.
And that’s because Australia is a key producer of the natural resources that the U.S. needs to maintain its global position.
In total, Australia had $390 billion in exports in 2021, ranking it 21st in the world. But from what I have discovered here, I believe that figure could explode in the coming months and years.
Because this country isn’t just positioned between the two largest economies in the world. It’s also primed for growth as a pan-Asian economic leader.
Australia is now looking to build and strengthen its strategic ties beyond China and the United States.
And it’s placing greater renewed focus on Japan and Indo-Pacific nations. Especially in the mining, energy, and industrial sectors.
Australia’s relationship with Japan matters to the United States. That’s because it can cut into China’s exports to Japan. And that can weaken China’s economy relative to the U.S. economy.
Australia can leverage its export relationships with the U.S. and beyond. And that can propel real wins for the mining and natural resource sector. That’s what insiders here have told me.
And there’s one corner of the resources market that’s squarely on my radar. It’s going to unleash a megatrend… And I’m more excited about it than I have been about any trend in decades.
That’s why I hosted an urgent energy briefing last week to share all the details. And for a limited time, you can watch the replay. Just click here.
Happy investing,
 |
Nomi Prins
Editor, Inside Wall Street with Nomi Prins