Toronto Stock Exchange launches a battery metals index

By Louis Allen - June 8, 2022

The Toronto Stock Exchange (TSX), in collaboration with S&P Dow Jones Indices LLC, has launched a battery metals index.

Operator of the TSX, TMX Group (TSX: X), unveiled the new S&P/TSX Battery Metals Index news on 2 June and the official launch celebration took place on Tuesday 7 June.

TSX chief executive officer Loui Anastasopoulos said the goal of the newly launched index was to increase exposure and awareness of clean technologies and the transition to renewable energies and vehicle electrification.

“In keeping with our long history of supporting the growth of the critical minerals industry and the interrelationship with clean technologies, decarbonisation, renewable energy and vehicle electrification, we are pleased to announce the launch of the new S&P/TSX Battery Metals Index,” he said.

The S&P/TSX Battery Metals Index will track TSX and Toronto Venture Exchange (TSXV)-listed companies involved in the production and exploration of metals used in the batteries that power electric cars or are used in renewable energies.

These metals include cobalt, copper, lithium, nickel and zinc, which are used in the decarbonisation of the transportation sector.

“Global demand for battery metals continues to gain momentum and the goal of this new benchmark is to provide investors increased exposure to, and deeper insights into the cleantech and energy transition story,” Mr Anastasopoulos added.

“TSX remains focused on the future, committed to working with our clients and industry stakeholders to seek innovative ways to enable the success of traditional and newly-defined sectors across our diverse and ever-evolving public markets ecosystem.”

S&P/TSX Battery Metals Index companies

The top companies of the S&P/TSX Battery Metals Index include: Turquoise Hill Resources (TSX: TRQ), Teck Resources (TSX: TECK.B), Sierra Metals (TSX: SMT), First Quantum Minerals (TSX: FM) and Lundin Mining (TSX: LUN).

With a market cap of C$13.45 billion, Turquoise Hill Resources (TSX: TRQ) leads the new index, which is made of 40 constituents.

A majority-owned subsidiary of Rio Tinto Group, Turquoise Hill is a Canadian mineral exploration and development company.

The index classifies the constituents as either production or exploration, where production companies are allocated 80% and exploration companies are allocated 20% of the total index weight.

According to the TSX, just last year, companies focused on critical and battery minerals accounted for over 25% of the total equity capital raised by the mining sector on TSX and TSXV exchanges.

Canada’s investment in critical minerals

The Justin Trudeau-led Canadian Government set aside C$3.8 billion for critical minerals, in its latest national budget.

Critical minerals are considered integral building blocks in achieving the nation’s goal of reaching net zero by 2050.

To help reach this goal, Natural Resources Canada (NRCan) is granting almost C$11 million to companies that win a call for proposals to build local pilot processing plants of the critical minerals.

The call for proposals is not only open to mining companies, but also Canadian universities, as well as provincial, territorial, regional and municipal governments.

Submissions for the funding are due by 17 June.

List of the companies in the S&P/TSX Battery Metals Index

The 40 companies included in the S&P/TSX Battery Metals Index sorted by market capitalisation are:

Teck Resources Class B Subordinate Voting Shares (TSX: TECK.B)
Turquoise Hill Resources (TSX: TRQ)
Sierra Metals (TSX: SMT)
First Quantum Minerals (TSX: FM)
Lundin Mining (TSX: LUN)
Copper Mountain Mining (TSX: CMMC)
Hudbay Minerals (TSX: HBM)
Ero Copper (TSX: ERO)
China Gold International Resources (TSX: CGG)
Capstone Copper (TSX: CS)
Taseko Mines (TSX: TKO)
Filo Mining (TSX: FIL)
Dundee Precious Metals TSX: DPM)
Foran Mining (TSX: FOM)
K92 Mining (TSX: KNT)
Aura Minerals (TSX: ORA)
Yamana Gold (TSX: YRI)
Ivanhoe Mines (TSX: IVN)
Lithium Americas (TSX: LAC)
SSR Mining (TSX: SSRM)
Barrick Gold (TSX: ABX)
Torex Gold Resources (TSX: TXG)
Pan American Silver (TSX: PAAS)
Northern Dynasty Minerals (TSX: NDM)
Centerra Gold (TSX: CG)
Arizona Metals (TSX: AMC)
Aya Gold & Silver (TSX: AYA)
Solaris Resources (TSX: SLS)
Silvercorp Metals (TSX: SVM)
Discovery Silver (TSX: DSV)
Oroco Resource (TSX: OCO)
Western Copper and Gold (TSX: WRN)
Calibre Mining (TSX: CXB)
Eskay Mining (TSX: ESK)
Wallbridge Mining Company (TSX: WM)
New Gold (TSX: NGD)
Seabridge Gold (TSX: SEA)
Eldorado Gold (TSX: ELD)
Karora Resources (TSX: KRR)
Alexco Resource (TSX: AXU)