Investing in electric vehicle batteries

[Deleted User]

I was wondering what the forum thought about investing in electric vehicle batteries ?

Bearing in mind that the government is pushing us all to go electric and wants major manufacturers to start production of batteries in this country - it would appear to be a shewd investment ?

Nebulous2

I'm sticking mainly to multi - asset trackers, but the idea of 'green' investment has an appeal. 

However - lots of people are there ahead of you, and as with everything else there will be those who soar and those who melt and fall. Can you spot the difference? 

Linton

If you are going to pick off assorted sectors what % of your portfolio would you assign and why?  How much to batteries, how much to AI, how much to solar etc etc?

It is one way of setting up your investments but certanly not the easiest.

george4064

I don’t think it’s the worst idea in the world, especially if it’s a mutual fund/ETF that is only a small % of your overall portfolio as a satellite fund.

In my LISA, I hold L&G Battery Value-Chain UCITS ETF (amongst other ETFs/ITs) which is a concentrated portfolio of about 33 listed companies with a TER of 0.49%. It’s aim is to simply track the Solactive Battery Value-Chain Index.

Summary of the index is as follows: Solactive Battery Value-Chain Index aims to track the performance of a basket of stocks of companies that are providers of certain electro-chemical energy storage technology (i.e., battery technology) and mining companies that produce metals that are primarily used for manufacturing batteries.

https://fundcentres.lgim.com/uk/professional/fund-centre/ETF/Battery-Value-Chain/

DjangoUnchained

i would invest in batteries but the charges are too high.. sorry bad pun alert.

Albermarle

I spotted this looking for something else . It is up 120 % in one year .

WisdomTree Battery Solutions UCITS ETF - USD Acc Key Statistics | IE00BKLF1R75 | Fidelity

bostonerimus

DjangoUnchained said:

i would invest in batteries but the charges are too high.. sorry bad pun alert.

Would they be sensitive to curren"t"cy exchange rates.

Albermarle

I am not sure whether to be positive or negative about them ,

snowqueen555

A lot of the individual stocks that are in the EV supply chain have gone through the roof in the past year, you will already have missed the first boat, but maybe there is more room to grow.

eastmidsaver

looks like the battery sector has had a great year.   but this was during the pandemic period where technology in general got rapid growth.  ongoing no one knows,  but i suspect returns will be more modest.

Thrugelmir

Thematic investing has the danger of driving the price of shares in a concentrated portfolio skywards. INRG's rollercoaster ride being a recent example. Buy the companies based on fundamental analysis rather than that they are simply grouped within a named wrapper. Traders read the press too and can buy up individual shares causing illiquidity.