We recently published a list of 7 Best Zinc Stocks to Buy According to Hedge Funds. In this article, we are going to take a look at where Rio Tinto Group (NYSE:RIO) stands against other best zinc stocks to buy according to hedge funds.
Zinc is a vital part of modern industry and plays a major role in galvanizing steel to produce alloys and promote sustainable energy storage. Construction, automotive, healthcare, and even dietary supplements are among its many uses.
Zinc’s importance is on the rise with a renewed focus on sustainable manufacturing, an increasing number of electric vehicles (EVs), and the growth of infrastructure projects. The Business Research Company has reported that the global zinc market will develop significantly. It is expected to rise from $28.82 billion in 2024 to $41.76 billion by 2029, with an annual growth rate of 7.6%.
The market trend further highlights zinc’s upward surge. Over the previous year, zinc futures have risen by 19.63%, increasing from $2,405 per metric ton on February 18, 2024, to $2,877 on February 19, 2025. Refined market fundamentals and investor trust have driven this expansion. In 2024, zinc production stood at 20 million tons, while its consumption stayed consistent at 19 million tons. China, Peru, and India continue to be the lead producers of the metal. However, global trade patterns have shifted, leading to an 11% drop in zinc imports, bringing it down to 4.2 million tons. After continuous growth of two years, exports also showed a decline of 8.5%, down to 4.6 million tons. This decline was mainly caused by a deceleration in the EV market, as vehicle manufacturers started experimenting with other materials. Furthermore, the shift to green energy momentarily disrupted conventional supply chains, leading to variations in zinc trade.
Regardless, zinc demand remains steady in the main industrial sectors. The U.S. and China held their position as the lead importers of the metal during the year. In 2024, it was reported that the USA imported almost 589,000 tons of zinc, making up 14% of total imports, while China imported 441,000 tons, contributing to 11% of total imports. This shows how zinc still plays a key role in infrastructure, the automotive sector, and technology advancements.
As the globe transitions to a low-carbon economy, zinc is becoming a vital facilitator of decarbonization with coatings alone, accounting for 60% of global zinc consumption. The International Zinc Association (IZA) forecasts a 22% increase in zinc demand from the automotive sector, which amounts to an additional 140,000 tons by 2030. This expansion is fueled by the increasing automobile sales in China and India, the surging preference for larger vehicles, and the increased utilization of galvanized steel in electric vehicle manufacturing.
Beyond the automotive industry, zinc’s demand is also increasing in renewable energy. According to Zinc.org, by 2030, solar power infrastructure will require approximately 568,000 tons of zinc, as zinc-coated steel becomes essential in solar arrays and wind turbines. Meanwhile, zinc is increasingly influential in agriculture due to the Zinc Nutrient Initiative (a program with the aim to add zinc fertilizer to soils to significantly increase crop yield, and boost nutritional value in humans), which has created an annual need of 400,000 tons for fertilizers. Moreover, the increasing popularity of zinc-based dietary supplements is boosting market demand.
In parallel, technological progress in zinc recovery and recycling is moving the industry toward sustainability. Innovations in direct leaching and submerged lance technology are improving extraction efficiency while minimizing environmental impact. A significant advancement, named Kobe Steel’s FASTMET process, has achieved a remarkable 95% recovery rate of zinc from steel mill waste and industrial by-products. These innovations are transforming waste into recyclable resources, fostering a circular economy that encourages zinc’s sustainability in the long run.
As the industry progressively emphasizes sustainability, zinc’s significance in infrastructure, energy, and agriculture continues to grow, offering profitable prospects for investors.
Methodology
To compile our list of the 7 Best Zinc Stocks to Buy According to Hedge Funds, we first conducted extensive research to identify companies with significant exposure to the zinc industry. We define exposure in terms of zinc mining, refining, or the production of zinc-based products.
We then extracted the number of hedge fund holders having a stake in the respective companies, as of Q4 2024, using data from Insider Monkey’s hedge fund database. The finalists are stocks with the highest hedge fund interest.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Aerial view of an open pit mine, with workers extracting minerals.
Rio Tinto Group (NYSE:RIO)
Number of Hedge Fund Holders: 39
Rio Tinto Group (NYSE:RIO) is a renowned mining company with operations spanning iron ore, aluminum, copper, and minerals. Although zinc makes up a lesser share of its portfolio, the company produces it as a by-product at its Kennecott Utah Copper operations, continuing its involvement in the base metals market. As the need for zinc increases in infrastructure and decarbonization technologies, Rio Tinto’s output remains important to the industry.
Rio Tinto Group (NYSE:RIO) reported a 15% increase in net profit, reaching $11.55 billion in 2024, up from $10.06 billion in 2023. However, underlying EBITDA declined by 2% to $23.3 billion, with the main cause being an 11% drop in iron ore prices due to lower Chinese steel demand and increased supply from competitors. Despite these obstacles, the company generated a 3% increase in operating cash flow, supported by elevated copper and aluminum prices and cost efficiencies.
Furthermore, capital expenditures increased to $9.5 billion as Rio Tinto Group (NYSE:RIO) progressed with major projects like the enhancement of its copper resources to satisfy the growing need for electrification. The company upheld a 60% payout ratio, allocating $6.5 billion in dividends to shareholders.
A key development in 2025 was Mitsui & Co.’s agreement, under which the company acquired a 40% stake for $5.34 billion in Rio Tinto’s Rhodes Ridge iron ore project in Western Australia. This initiative is projected to start production by 2030 and tap into 6.8 billion metric tons of iron ore reserves. It initially aims to produce 16 million tons of iron ore each year, with the possibility of increasing to more than 40 million tons.
Moreover, Rio Tinto Group (NYSE:RIO) is also advancing lower-carbon zinc production by enhancing smelting efficiency and reducing emissions, promoting industrial sustainability. These initiatives place the organization in a favorable position to gain from the rising need for responsibly sourced metals.
However, challenges like iron ore price volatility, operational disruptions in the Pilbara region due to adverse weather, and potential pressure on aluminum margins from trade policies persist. Nonetheless, Rio Tinto Group (NYSE:RIO)’s diversified portfolio, cost-effectiveness, and strategic investments boost its position as a top zinc stock for investors.
Overall, RIO ranks 3rd on our list of best zinc stocks to buy according to hedge funds. While we acknowledge the potential of RIO as an investment, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than RIO but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
