Fund manager looks to capitalise on battery materials

Fund manager looks to capitalise on battery materials

Business news |
By Nick Flaherty

The Advanced Battery Metals and Materials ETF (exchange traded fund) from Chicago-based Amplify tracks companies in the business of mining, exploration, production, processing or recycling of advanced battery metals and materials. The companies must derive 50% or more of their revenue, or be in the top five and have at least 10% of global market share, of any advanced battery material. ther funds have focussed on individual materials and the battery supply chain.

“The recent boom in battery-powered electric vehicles, smart devices and large-scale energy storage solutions may be the tip of the iceberg for this investment opportunity,” said Christian Magoon, CEO of Amplify ETFs. “As the demand and science behind efficient battery solutions matures, our actively managed approach across multiple metals and materials will seek to adapt the fund’s holdings in order to optimize investment exposure to this dynamic space.”

Amplify has introduced other ETFs for ‘future-focused’ segments and has $750m in these funds. Magoon believes the global battery market will experience growing demand due to the growth of robotics, electric vehicles, artificial intelligence, smart devices and clean energy technology. It is the constrained and geographically concentrated supply of battery metals and materials that suggests positive movement in prices for these essential building blocks, he says.

“We see a significant opportunity to capitalize on segments of an industry where we are in the early stages of growth. Batteries aren’t just about lithium anymore; investors may need to own a broader basket of metals and materials to best capture the future growth potential associated with the battery market,” he said.

The fund will be co-managed by the Fund’s sub-advisers, Toroso Investments and Exponential ETFs.

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