4 high-potential shares to buy for the green revolution!

I am increasingly looking for ‘green’ stocks to buy. That’s because my long-term position tends to reflect global trends, such as the green agenda or an aging population.

But my investments related to eco issues are not always ‘green’. I appreciate that one of the biggest winners of the electrification of transport and other industries will be energy companies.

So, let’s take a closer look at four stocks with high potential to prosper from the green agenda.

‘Green’ Transport

NIO Shares show quite extreme volatility. Despite this, I still see the Shanghai-based EV maker as the frontrunner in the sector. The company has seven models on sale, and their performance rivals the market leader Tesla. The battery replacement technology is also unique and, for me, a winner.

After a difficult year of lockdown, NIO delivered 15,815 vehicles in December 2022 – a new record monthly shipment, representing an increase of 50.8% year-on-year.

Geopolitics and the threat of more restrictions on Chinese-made goods are a constant concern. However, it appears that NIO aims to reduce risk. It has produced battery changing stations in Europe.

I buy more of the stock when the stock price is depressed.

Another save I would like to make is Chemical and Mining Society of Chile. The company is a low-cost producer of lithium – a key component in EV batteries.

This is on top of the rise in lithium prices over the past 18 months. Despite the forecast for a weaker economy in 2023, I still expect lithium demand to remain strong. This is because the demand for lithium is linked to one of the most important economic trends of our generation.

I expect increased competition for resources over the next decade that will translate into higher prices for fuel and metals. I bought the stock earlier in the month.

It can be renewed

The green agenda naturally depends on energy coming from renewable sources. Wind is Britain’s most abundant resource. One stock I really like and have bought twice in the past month is Greencoat UK Wind.

The trust owns 45 wind farms in the UK and produces enough energy to power around 1.5m homes. It has a 12.5% ​​stake in the world’s largest wind farm, but also has a very small collection of facilities.

The wind is temperamental, and it is a challenge. But hopefully, the development of battery technology will help the supply and demand problem. I also hope to see the firm boosted by the end of the onshore wind moratorium. Some estimates suggest onshore wind energy is half the price of offshore wind energy.

I also keep an eye out BP. By 2025, almost half of the energy giant’s $15bn capital expenditure budget will be channeled into green power. Analysts estimate that the green arm of the business can generate up to $ 9bn-$ 10bn in underlying cash profits by 2030. I’m certainly interested, but I’m always careful about buying shares in a bull run – it’s up 30% over 12 months.