PetroChina, the listed arm of China National Petroleum Corp (CNPC), is set to enter the trading market for metals critical to the energy transition, including copper and lithium, as part of its broader strategy to diversify its portfolio. Richard Fu, a commodities industry veteran with over three decades of experience, has been appointed as the new trading manager at PetroChina International (London) Co Ltd, marking the company’s entry into the sector.

In a recent post on social media, Fu expressed his enthusiasm for launching PetroChina's green energy transition and minerals business. "I am honoured to start the green energy transition and minerals business for PetroChina, trading physical and paper copper, lithium, and others," he wrote. Fu, who previously led commodities at the London branch of Shanghai Pudong Development Bank, will oversee the company’s foray into trading metals like lithium, copper, and possibly nickel, as well as exploring potential markets for carbon and electricity trading in Europe.

The new PetroChina unit is expected to focus on trading copper and lithium, both of which are in high demand due to their crucial roles in EV battery production. Additionally, the company may explore trading nickel, another key component for electric vehicle batteries. With the global push towards decarbonization, these metals have become increasingly valuable as industries look to reduce carbon emissions and shift toward more sustainable technologies.

PetroChina, a major player in the global oil and gas industry, is stepping into the commodities market at a time when global energy traders are increasingly diversifying into energy transition metals. These metals are vital to produce electric vehicle (EV) batteries, renewable energy storage, and other green technologies, as the world shifts away from fossil fuels and embraces electrification. The move follows a growing trend of big oil companies, including Exxon Mobil and Saudi Aramco, targeting lithium and other transition metals to capitalize on the increasing demand for clean energy solutions.

In line with the shift toward a greener future, China’s state oil giants, including PetroChina, have been seeking to expand beyond oil production due to slowing domestic oil demand growth as electric vehicles become more widely adopted. This diversification is also aimed at tapping into the lucrative markets for the metals that are central to the energy transition.

As China’s oil giants pivot to new opportunities, PetroChina’s move into the energy transition sector signals a broader trend of diversification within the energy industry. Companies are positioning themselves to be leaders in the green economy, ensuring they have a foothold in the growing markets for renewable energy and its supporting infrastructure.