By Bianca Flowers

DALLAS (Reuters) – Construction equipment maker Caterpillar Inc (NYSE:), believes that demand for crucial minerals will increase as clean energy transition progresses. CEO Jim Umpleby stated Tuesday in an interview.

Umpleby explained that Umpleby is targeting a $5 trillion global market for energy transition infrastructure between 2021-2040.

After the company’s investor days, he said that “mining capital expenditures” had been somewhat subdued in the past few years. He told Reuters:

Heavy machinery company executives reaffirmed their commitment to achieving $28 billion annual revenue by 2026 for transportation, energy and machinery.

Umpleby believes that increased demand for minerals will increase the market potential in renewables. Umpleby stated that this means more mining equipment which creates an opportunity.

In 2022, capital expenditures in mining have already outpaced those in the preceding eight years. This trend will continue with companies investing in new fleets and replacing aging equipment in order to increase operations.

Caterpillar’s total cash flow to cover capex increased from $252 million last ye to $346m by 2022. This was due in part because the company invested more money into technology, artificial intelligence, environment and governance.

The company’s board approved Tuesday’s stock repurchase plan of $15 billion. On the news, shares rose by 2.1%