As mentioned in a previous post, S&P Dow Jones Indices (S&P DJI) partnered with S&P Global Commodity Insights (S&P GCI) to leverage its over 30 years of industry-leading Metals & Mining data and expertise in order to launch the S&P Global Core Battery Metals Index. As the index seeks to identify the key players in the upstream battery metals supply market, S&P GCI is proud to be a contributor of back-end data and industry expertise.
Hosted on the S&P Capital IQ Pro platform by S&P Global Market Intelligence, the detailed asset and company-level data coverage, combined with deep industry research and analysis, provides a comprehensive view of the mining sector worldwide. The Metals & Mining solution covers worldwide exploration, discoveries, development, production, mine cost analysis, acquisitions activity and commodity market forecasts and analysis, and it connects its customers to global opportunities on a single platform (see Exhibit 1).
An Asset-Level Approach to Company Production
A key input that drives the S&P Global Core Battery Metals Index is company production and its derived production value for core battery metals—nickel, cobalt and lithium.
A company’s commodity production plays a central role when benchmarking mining companies’ standing, as well as understanding the upstream supply affecting global commodity markets. For the manufacturing of downstream battery-related products, such as electric vehicles, understanding the mined output/supply of the core battery commodities is crucial, and that all begins with the output at the mine level (see Exhibit 2).
S&P GCI aggregates (or sums) asset-level production data up to the company level, based on the equity ownership stake in each property, and both ownership and production data sets are sourced primarily from public company filings. Also, standardization is applied to adjust production into a single unit of measurement per commodity and a single 12-month period ending in December of each year.
With S&P DJI’s core expertise in licensing indices to more than 550 financial institutions worldwide and S&P GCI’s strong offerings across the commodities sector, the formation of the S&P Global Core Battery Metals Index is a natural partnership between the two divisions to accelerate progress in the energy transition via battery metals.
If you are interested in learning more about the data that fuels the index, please don’t hesitate to contact S&P GCI. Keep an eye out for a future blog that will further delve into the index’s methodology and provide an overview of historic performance.The posts on this blog are opinions, not advice. Please read our Disclaimers.