Humanoid robots are real. They are currently being used in well-structured environments, such as industrial production and logistics, and have a path to general purpose adoption from 2035. The advanced stage of this technology and swiftness with which it is being commercialised were readily apparent during a research trip we took to China last month (notes available here).
Production is expected to ramp up significantly from 2025 and grow at a rate analogous to electric vehicles (EVs) from 2013 and smartphones from 2003 based on the view that humanoid robots will be the next widely adopted terminal device. Industry leaders believe adoption will be massive: Elon Musk, CEO of Tesla, sees one billion in circulation by 2040 and Jensen Huang, CEO of NVIDIA, believes that they will become as common as cars. As each robot is roughly 75kg and more than 50% base metals, battery metals and rare earths, this is a theme that is expected to tighten commodity markets.
Ben Cleary, Portfolio Manager, sets out below a brief overview of humanoid robots, the expected rate of sales growth and the positive impact this will have on materials demand moving forward. The Tribeca Global Natural Resource Strategy is strategically exposed to metal producers that will provide diversified torque to this thematic.
Please find his full report at the link below.