Beyond Tesla: 5 Battery Tech Companies You Should Know About

Beyond Tesla: 5 Battery Tech Companies You Should Know About

This article was brought to you by our friends over at ETF Securities Australia. The views and opinions expressed in this article are those of ETF Securities Australia and may not reflect the views of SelfWealth or its associates.

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Renewable energy is in the spotlight and the battery technology supply chain is key to the transition. 

Wind and solar energy are forecast to supply around 48% of world electricity needs by 2050. According to BloombergNEF, it is anticipated that battery technology, gas peakers (turbines or engines that burn natural gas) and dynamic demand could drive market penetration of solar and wind by more than 80%. 

The same report also suggests the costs of renewable energy will undercut coal and gas in most parts of the world by 2030, serving as a compelling reason for countries to focus on it.

While investors may be well aware of Tesla’s credentials in battery storage, the supply chain for battery technology extends far beyond one company and covers mining companies, battery storage manufacturers and storage technology providers.

Here are 5 companies fuelling the transition towards renewable energy. 

 

1. SolarEdge Technologies Inc (NASDAQ: SEDQ)

SolarEdge is a US-domiciled manufacturer of energy technologies, including power optimisers, solar inverters and monitoring systems for photovoltaic arrays, which are solar cells that convert light to electricity. 

While the company has a global customer base, in the US it has a majority market share, with 60% of the residential solar inverter market. SolarEdge has also ventured into the electric vehicle (EV) market by producing the world’s first EV-charging inverter, which has the ability to charge EVs up to 2.5 times faster than current models.

 

 

2. NGK Insulators (TYO: 5333)

NGK Insulators is a Japanese ceramics company responsible for battery systems, insulators and equipment. 

The company was responsible for the world’s first commercialised battery storage system capable of megawatt level electrical power storage. This system is in use in more than 200 locations worldwide. 

NGK produces lithium-ion rechargeable batteries with high heat-resistance and the company is also researching and developing an alternative in the form of zinc rechargeable batteries.

 

3. LG Chem (KRX: 051910)

LG Chem is a Korean chemical company with a portfolio across petrochemicals, advanced materials and life sciences. It was the first company to mass produce lithium-ion batteries in Korea and has the leading market share in automobile batteries. 

Furthermore, LG Chem also produces carbon nanotube (CNT), which is used for lithium-ion battery cathodes. It supplies some of the world’s major car manufacturers such as Renault and Volkswagen, as well as supplying battery materials to companies like Hitachi. 

 

4. Galaxy Resources (ASX: GXY)

A familiar sight to ASX investors, Galaxy Resources is an Australian mining company focused on lithium. It has mines in Australia, Canada and Argentina. The mine is Argentina has the potential to be the lowest-cost producer of lithium in the world through oil brine extraction. 

Lithium accounts for 85% of commissioned utility scale battery storage and Galaxy Resources is likely to benefit from the continuing demand for lithium to support battery storage.

 

 

5. EnerSys (NYSE: ENS)

EnerSys is a US-based manufacturer of power storage solutions for industrial applications and has 21% worldwide market share in this field. Its products include batteries, charging and power modules, monitoring and fleet management, plus energy systems used in industries such as telecommunications and transportation.

 

Investing in battery technology

Investors can access battery technology exposure in a range of ways looking across the battery technology value chain.

This may mean focusing on components such as lithium by investing in mining companies like Galaxy Resources or looking at battery manufacturers like EnerSys. 

Investors could also look at companies with more diversified capabilities not purely restricted to battery technology such as Tesla (NASDAQ: TSLA) or Panasonic (TYO: 6752).

However, direct investing means that you are concentrating your risk exposure to one or more stocks. In addition, certain stocks, particularly those in Asian markets, are not necessarily easy to directly invest in.

With this in mind, another option that investors may want to consider is to focus on managed options, whether this is active funds or alternatively, exchange-traded funds like the ETFS Battery Tech & Lithium ETF (ASX: ACDC). This ETF provides investors with broad exposure across the global battery technology supply chain and it includes all the companies referenced in this article.

 

Interested in learning more about investing in battery technology? Contact ETF Securities to find out more about ETFS Battery Tech & Lithium ETF (ASX: ACDC).

To invest in ASX-listed ETFs or any other ASX and US-listed securities, join SelfWealth today for flat-fee $9.50 brokerage and no other account fees or commissions!

 

ETF Securities Australia Client Services

Phone: +61 2 8311 3488

Email: infoau@etfsecurities.com.au

Website: www.etfsecurities.com.au

 

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This document is communicated by ETFS Management (AUS) Limited (Australian Financial Services Licence Number 466778) (“ETFS”) for publication by SelfWealth Ltd ACN 52 154 324 428 (“SelfWealth”) (Australian Financial Services Licence Number 421789). This document may not be reproduced, distributed or published by any recipient for any purpose. Under no circumstances is this document to be used or considered as an offer to sell, or a solicitation of an offer to buy, any securities, investments or other financial instruments and any investments should only be made on the basis of the relevant product disclosure statement which should be considered by any potential investor including any risks identified therein.
 
This document does not take into account your personal needs and financial circumstances. You should seek independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Although we use reasonable efforts to obtain reliable, comprehensive information, we make no representation and give no warranty that it is accurate or complete. 

 

Investments in any product issued by ETFS are subject to investment risk, including possible delays in repayment and loss of income and principal invested. Neither ETFS, ETFS Capital Limited nor any other member of the ETFS Capital Group guarantees the performance of any products issued by ETFS or the repayment of capital or any particular rate of return therefrom. 

 

The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not an indication of future performance. 

 

ETFS Battery Tech & Lithium ETF (ACDC) ARSN: 605 617 490 is issued by ETFS. The financial instrument is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the Index and/or Index trade mark or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trademark for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument. Solactive AG will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.

 

Information current as at 2 February, 2021

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