Morgan Stanley launched a new thematic equity index called the “National Security Index.” The index includes 39 stocks from four critical sectors: nuclear power and uranium, lithium, rare earths and strategic metals, and batteries and energy storage. The launch focuses on companies whose products, operations, or technologies support national security, supply chain resilience, and strategic infrastructure.
Morgan Stanley has launched a new equity index called the “National Security Index”
National Security Index Overview
Morgan Stanley developed this index to track publicly listed companies crucial to the United States’ strategic industrial and technological strength. The index highlights firms involved in defence-related industries, advanced battery materials, cybersecurity, and energy, including nuclear power. The focus comes amid rising global geopolitical tensions and supply chain concerns, prompting increased investment in securing critical materials.
National Security Index Featuring 39 Companies
Sectors Covered in the Index
Nuclear Power and Uranium
The index tracks leading companies in uranium mining and nuclear energy production. Morgan Stanley research projects a nuclear energy renaissance, potentially attracting $1.5 trillion in capital investments through 2050. Nuclear power could supply 17% of global electricity, up from approximately 10% currently. Increased nuclear capacity supports decarbonisation goals by providing stable, low-carbon baseload electricity amid challenges in renewables’ scale.
Key firms in this segment within the index include Cameco Corp and Centrus Energy Corp. The U.S. aims to reduce reliance on foreign uranium supplies, bolstering energy independence and strategic stability.
Companies from the Nuclear Energy and Uranium sector
Lithium Sector
Lithium is critical for electric vehicle batteries and energy storage technologies. The index includes companies such as Sigma Lithium Corporation, Albemarle, Lithium Americas, and Livent. Sigma Lithium, added recently to the index, emphasises environmentally sustainable lithium production with net-zero carbon emissions and no toxic waste. It operates one of the world’s largest lithium production sites in Brazil.
Lithium market demand grows with the global shift to clean energy and electrification, underlining the sector’s strategic importance in securing supply chains for future technologies.
Companies from the Lithium Sector
Rare Earths and Strategic Metals
Rare earth elements and strategic metals are essential for advanced electronics, military equipment, electric vehicles, and renewable energy technologies. The index highlights companies like MP Materials, Critical Metals, Ivanhoe Electric, USA Rare Earth, and NioCorp Developments. Over 70% of rare earth production currently comes from China, raising concerns about supply security.
Morgan Stanley’s index recognises these companies as vital to diversifying and securing rare earth supply chains critical for chips, missiles, and electric vehicles, thereby enhancing U.S. industrial autonomy.
Batteries and Energy Storage
This sector covers companies focused on battery technology advancements and energy storage, which are central to modern electric vehicles, grid stability, and clean energy transition. Tesla stands out as a key player listed in the index, along with firms developing next-generation lithium-ion and solid-state battery technologies, such as Amply Power and Microvast.
Energy storage capacity growth directly impacts national security by providing resilience to the power grid and supporting electric mobility.
Strategic Importance and Market Impact
Morgan Stanley’s index serves as a roadmap for investors aiming to align portfolios with the strategic industrial policies shaping future U.S. competitiveness. The inclusion of firms across nuclear energy, lithium, rare earths, and battery tech underlines the intersection of investment with geopolitics and technology innovation.
The index gains importance as the U.S. government and corporations strive to reduce dependency on foreign sources, particularly China, for critical materials and technologies. Institutional investors using the index will likely focus on companies that enhance national supply chain resilience and infrastructure security.
Summary
Morgan Stanley’s National Security Index is a strategic tool tracking 39 companies in nuclear power and uranium, lithium, rare earths and strategic metals, and batteries and energy storage. It responds to rising geopolitical tensions and supply chain risks by emphasising firms that underpin national security. The index highlights the investor focus on securing critical material supply chains and advancing technologies essential for energy independence, defence, and clean energy transition.
