The global shift toward cleaner energy is creating significant opportunities for emerging markets (EM), but the benefits will not be distributed evenly. Many EM economies are turning to lower-cost renewable energy to reduce dependence on imported fuels, improve power-price stability and strengthen energy security. Countries and businesses that can capitalize on their positions in critical minerals and clean-energy technologies may gain a competitive advantage, creating significant differences in investment outcomes.

After years of relatively subdued growth, global electricity demand is accelerating, driven in part by artificial intelligence and the infrastructure required to support it. Electricity consumption per person is expected to reach new highs across many parts of the world by 2030. With populations growing faster than those in developed economies, EM countries are likely to account for a substantial share of this additional demand.

At the same time, the composition of global energy production is changing. Renewable sources are expected to account for most new power-generation capacity across much of the developing world over the coming decades, with solar and wind playing leading roles. This appears to be more than a temporary shift. Population expansion, urbanization and increasing electrification are creating long-term structural demand for additional clean power.

Renewable-energy deployment is expanding across emerging markets as governments improve grid infrastructure and introduce supportive regulatory frameworks. In many major EM economies, renewable generation can also be developed and operated at a lower cost than in developed markets, helping countries improve competitiveness while supporting industrial expansion.

EM's growing control over many critical minerals, combined with the potential for greater energy-cost stability, is strengthening its position in the global energy transition. These advantages can support economic resilience across a wide range of emerging economies.

Many EM countries have spent years reducing their dependence on imported energy. Recent geopolitical disruptions have reinforced that objective, highlighting the economic risks associated with volatile fossil-fuel prices. At the same time, geopolitical uncertainty is encouraging governments to explore green financing and renewable-energy investment as a way to reduce exposure to fluctuations in global energy markets.

However, access to renewable resources alone does not guarantee economic gains. Critical minerals still need to be extracted, transported and processed before they can become part of the clean-energy supply chain. Performance across these stages has varied considerably, with a relatively small group of countries accounting for a significant share of critical-mineral production.

Countries that have successfully expanded mineral production and developed related industries can gain greater geopolitical influence, stronger energy security and increased economic resilience. Countries that have struggled to develop these capabilities may instead remain exposed to supply-chain disruptions while capturing only a limited portion of the economic value.

This widening divide between countries that are successfully building energy-transition capabilities and those that are not is likely to produce increasingly different economic and investment outcomes. As a result, country selection and security selection may become increasingly important for investors.

China and Southeast Asia provide examples of how companies and economies can use scale and renewable resources to improve their competitive positions.

China Hongqiao, one of the world's major aluminium producers, illustrates this approach. Aluminium production is highly energy intensive and has traditionally relied heavily on coal, resulting in substantial carbon emissions. After operating for years in Shandong, the company shifted some production to Yunnan, where abundant hydropower, wind and solar resources provide access to cleaner electricity.

The company has also made substantial investments in supporting infrastructure, including annual spending of roughly RMB 2–3 billion on grid maintenance and around RMB 6 billion on solar development. These investments have helped China Hongqiao improve the predictability of its energy costs, reduce exposure to carbon-related trade measures and strengthen its competitive position as global markets move toward lower-carbon production.

Other Chinese companies have used scale in renewable energy to expand revenues while improving profitability. Solar-equipment manufacturer Sungrow, for example, has combined solar-generation equipment with energy-storage systems, both of which are increasingly important for large utility-scale projects. This broader product offering has contributed to a growing revenue base.

Contemporary Amperex Technology (CATL), the world's largest electric-vehicle battery producer, has similarly relied on manufacturing scale and cost advantages to address growing demand for grid-scale battery storage. Increasing production volumes while improving margins demonstrates how scale can help companies capture more value from the energy transition.

South Korea has followed a somewhat different route. The country remains significantly dependent on imported coal and natural gas and faces periods of uncertainty around nuclear-power availability. However, increased renewable capacity has helped bring down energy costs, improving the competitiveness of renewable power relative to conventional fossil-fuel generation.

Elsewhere, governments are experimenting with innovative financing structures to accelerate the shift away from fossil fuels. Chile, for instance, has worked with private-sector participants to expand its green and sustainability-linked bond markets, creating additional sources of capital for renewable-energy development.

Comparable initiatives are emerging throughout the developing world, although the pace and effectiveness of implementation vary substantially. Investors therefore need to distinguish between markets and companies that possess genuine competitive advantages and those that may struggle to convert the energy transition into sustainable economic gains.

Ultimately, the ability to scale projects and execute effectively will be crucial for countries and companies seeking to move higher up the clean-energy value chain. Over time, a broader group of emerging markets may be able to capture the economic benefits associated with renewable energy. At present, however, only a select number of countries and businesses appear particularly well positioned.

For investors, this uneven development creates both opportunities and risks. Active management, careful country analysis and disciplined credit selection may therefore be essential for identifying the potential beneficiaries of the energy transition.

The original authors acknowledged contributions from Waseem Amin, ESG Strategy and Client Solutions Analyst, and Sourish Chatterjee, Research Analyst.

This material is provided for informational purposes only and does not constitute investment research, investment advice or a recommendation to buy or sell securities. The views expressed may not represent those of every portfolio-management team and may change over time.

References to individual securities are illustrative and should not be interpreted as recommendations. There is no assurance that investments in any securities discussed have been or will be profitable.

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Cuprum Metals Inc., a technology company headquartered in Delaware, has successfully completed a US$19.4 million Series A financing round. The investment was led by the Lundin Family Office, with participation from Woodline Partners and BHP Ventures.

The newly raised capital will be used to advance the commercialization and scale-up of Cuprum's proprietary leaching technology. The process has already delivered encouraging results in pilot-scale programs involving primary, secondary, and oxide copper ores using both heap-leach and vat-leach methods.

Cuprum's innovative system employs a water-based chemical leaching process that can operate with either fresh water or seawater. The technology achieves high copper recovery rates while significantly reducing processing times. It is particularly effective in extracting copper from chalcopyrite and other minerals that have traditionally been difficult to leach, while also lowering both capital expenditure and operating costs. According to founder, chairman, and CEO Roger Pettman, the company is now concentrating on scaling the technology and broadening its use across a wider range of copper projects with the support of its investors.

Investor Perspectives
The Lundin Family Office noted that it is pleased to lead the investment and support a technology that could deliver substantial benefits to the copper sector. As global copper demand continues to increase, solutions that enhance resource recovery and improve operational efficiency are expected to become increasingly important. The organization expressed its commitment to supporting Cuprum's growth alongside Woodline Partners and BHP Ventures.

BHP Ventures highlighted that technologies capable of maximizing value from existing mineral resources and improving processing performance align closely with its investment strategy. The firm believes Cuprum's chemical leaching approach could create additional recovery opportunities and provide greater flexibility in developing a variety of ore deposits.

Woodline Partners stated that Cuprum's technology represents one of the most adaptable solutions available to address the copper industry's growing supply challenges. The firm was particularly impressed by the technology's ability to rapidly recover copper from diverse feedstocks—including sulfide ores, smelter slags, and tailings—without relying on thermal treatment or biological processes. Woodline expressed enthusiasm about supporting the company's continued expansion and technology deployment.

Technology Performance
Cuprum's leaching process has demonstrated strong performance under ambient temperature and pressure conditions when applied to sulfide ores. In tests involving predominantly chalcopyrite-bearing material, copper recoveries have generally exceeded 75% within approximately 100 days. The technology is designed to work across a broad range of ore types and has also proven effective for oxide ores, while requiring lower acid consumption than conventional oxide leaching methods.

The company has conducted testing on ore samples from mining operations in South Africa, the United States, Chile, and Australia, consistently achieving positive outcomes. In addition, the technology has shown promising results in recovering copper from both primary and secondary sulfide tailings. By eliminating the need for heating, the process opens new opportunities to extract value from previously processed materials and promotes more efficient utilization of existing mineral resources.

The Series A funding will be used to support commercial deployment activities, strengthen technical capabilities, recruit additional talent, and expand Cuprum's customer base as the company moves toward broader industry adoption.