“Green commodities” are on a tear. And the aluminum price has just hit its 10-year high.

It’s close to its all-time high, too.

But, in our opinion, aluminum isn’t overvalued. On the contrary, this action could be just the beginning of a supercycle.

Why do we think so? Well, let us remind you about the forces shaping this massive bull market in aluminum.

As always, here at The Financial Star, we keep an eye on the most exciting and vital developments in all corners of the global market.

And today, we will focus on aluminum, one of the key commodities driving the multi-trillion “green revolution.”

Reason 1: Shortages in China

In late August, something strange started happening… Rumors spread that China, which is the world’s biggest producer of aluminum, doesn’t have enough supply to meet demand.

In other words, China is likely facing shortages of this critical metal.

The Chinese government used desperate measures to try to control the price. The Financial Times reported that China unleashed its existing stockpiles to satisfy some of the soaring demand.

It didn’t help, though. Aluminum continues trading close to its all-time highs.

But what we have seen so far is that China’s inventory can’t change the situation much. The market for aluminum is more resilient and, we think, in a more bullish place than China would want it.

However, there’s something else happening in China that’s supportive of aluminum.

In short, the Chinese government wants aluminum producers to become greener… to use less energy. So it has started a crackdown on the aluminum industry, which needs a lot of energy to operate.

This, of course, was also bullish for the price. As energy-intensive aluminum production facilities are put on pause, production slows down, and the supply goes down as well.

Which is great for the price, of course.

But there are other factors at play…

Reason 2: The World Needs More Aluminum

China could be one of the major drivers of the demand for aluminum and other “green revolution” metals… but there’s always more happening globally.

And it’s very bullish for the metal, we think.

Here’s why. The world is apparently moving from a state of surplus (supply higher than demand, which is bad for the price) toward deficit (demand higher than supply, which is good for the price).

Post-pandemic demand for aluminum is recovering faster than supply, Bloomberg reports,

In 2020, the demand for aluminum declined by 3%. This year, it’s projected to grow by 5%.

Orders for the metal have soared by 10%, the most in two months.

Along with China, the United States and the European Union will demand more aluminum in the future.

The US will likely see renewable energy contribute about one-third of the country’s total electrical generation by 2030, more than double the current level of about 14%.

However, an optimistic case calls for about 50% of all electricity in the US to be generated by clean energy sources, like wind and solar.

And that means thousands, if not millions, of tonnes of aluminum in additional demand.

Reason 3: The Green Revolution Is Unstoppable

Here at The Financial Star, we watch the biggest trends happening today. And the “green revolution” is probably the number one trend happening right now.

It involves infrastructure, energy, construction—and a lot of commodities needed to make the green change happen.

This is why commodities are soaring right now… from aluminum to copper, tin, and lithium.

It could be bigger than the giant bull market that China started in 2009–2011, in our opinion.

And some research firms say that this megatrend could last for decades. Like CRU, a market research group, that projects massive growth for solar energy… and the metals used in solar installations.

Aluminum is poised to benefit from this green revolution. As a light metal used in both energy installations and electric vehicle manufacturing, it can make vehicles lighter and more energy-efficient.

In other words, aluminum might be one of the biggest winners of this trend.

So, we recommend that you put it on your radar. There is an aluminum-focused ETF that provides investors with exposure to the metal: iPath Series B Bloomberg Aluminum Subindex Total Return ETN (JJU).

Thank you for your loyal readership,

The Financial Star team

P.S. In addition to aluminum, lithium could be poised to continue its bull run as well.

And we have a company on our radar that could potentially have the technology to unlock massive value for lithium producers and electric vehicle manufacturers.

It’s called Medaro Mining Corp. (CSE:MEDA, OTC:MEDAF, FRA:1ZY).

We would like to remind you that since we put Medaro on our radar on April 7, 2021, its share price has increased by 74%.

As a reminder, Medaro Mining trades in Canada, United States, and Germany.

For your convenience, here is a list of symbols that Medaro is trading under:

  • Canada: MEDA
  • United States: MEDAF
  • Germany: 1ZY

We consider Medaro a promising lithium technology company.

Here’s why we put it on our watch list:

  • A potentially disruptive cutting-edge lithium extraction technology.
  • Two highly promising, in our view, lithium projects in mining-friendly Quebec.
  • A recent definitive agreement with Global Lithium Extraction Technologies.

We have prepared a full report on Medaro. Please click the link below to access it: https://invest.thefinancialstar.com/medaro-otc-superlithium

Please review the full paid disclosure for Medaro Mining in its respective report available via the link above.

Thank you for your loyal readership,

The Financial Star team