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Bad mood? Crises are always opportunities

18 August 2022 – Rising dividends at S&P 500 companies in the United States. Soaring demand meets supply challenges. And crisis, no thanks. Identify and seize opportunities in crises.

Rising dividends in the United States

So far this year, 236 companies in the S&P 500 have raised their dividends, five corporations have announced dividends for the first time and only five companies have eliminated or reduced their dividends. This was reported by Deutsche Bank. Compared to the previous year, the aggregate dividends per share for the index are now ten percent higher. According to Deutsche Bank, experts believe that the dividends of the S&P 500 could increase by a good six percent annually until 2030, and by an average of eight percent in the next two years. 

BNEF: Soaring demand comes up against supply constraints

In a recent report, analysts at BloombergNEF (BNEF) pointed to the massive increase in demand for battery metals, such as lithium, manganese and nickel, and the supply bottlenecks that are likely to occur as a result. https://about.bnef.com/blog/race-to-net-zero-the-pressures-of-the-battery-boom-in-five-charts/

Demand for battery metals is expected to increase by 50% in 2022

This year, the total demand for battery metals is expected to increase by 50% to 4.8 million metric tons, and by the end of the decade, it is expected to reach over 17.5 million tons. Between 2021 and 2030, the demand for lithium is expected to increase at the quickest rate, more than sevenfold.

Technical supply deficits for manganese, nickel, and lithium

Whether there is enough supply to meet the rapid increase in demand is the crucial question. Markets for battery metals are anticipated to be constrained in 2022 due to a combination of increased demand, inflationary pressures, and supply chain limitations. The most recent Battery Metals Outlook from BNEF predicts technical supply deficits for manganese, nickel, and lithium this year.

Manganese, which is needed to manufacture battery cathode precursors, is challenged by underinvestment in downstream sulfate refining capacity, which is constraining supplies for lithium and nickel refineries.

Crisis? No, thanks!

You probably know this too. You open the digital news in the morning and are inundated with a flood of bad news. Like us, this state of affairs probably gets on your nerves too. Because the media rarely offer solutions or help – and then justify this by saying that they are only obliged to “report”.

Challenges need solutions

And with the end of the summer break, the return from holiday and the continuous fireworks of “shitty” news, entrepreneurs and employees are supposed to start their daily work routine motivated again.

Not with us. We show ways in which companies can react now.

  • Involve employees positively in solution processes
  • Review electricity, gas and other supply contracts and adjust them if necessary.
  • Start using alternative energies in the company (photovoltaics, wind power, biogas, hydrogen)
  • Invest in green hydrogen
  • Check state subsidy programmes and aid
  • Talk to regional politicians and get them moving
  • Check supplier contracts and look for alternatives

Crisis is an opportunity for change

Thorsten Gerber, CEO of the Gerber Group said today: “The crisis is the opportunity for change and only takes place in the head anyway!“

“Sure, it always feels uncomfortable at first. But also only because in such moments we are taken out of our mental comfort zone. Once we have accepted this as a given, it is much easier for us to roll up our sleeves and tackle things that not only get us out of the crisis, but often make the whole company better,” he continued.

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