Investing in Battery Technology

Several metals are crucial for the production of electric vehicle batteries. They will likely benefit from a structural shift in demand, providing a solid investment case for years to come. Pursuing an investment strategy that invests in battery technology through these metals could be very lucrative in the longer term.

Lithium, cobalt, graphite, vanadium and manganese are common metals in EV battery production. Investing in companies mining these metals gives the investor the exposure required to benefit from the surging global demand for lithium-ion batteries. Below are examples of metals that are crucial for EV battery production.

• Lithium: The metal has seen a skyrocketing popularity in recent years due to its role in lithium-ion batteries. China is a rising force in lithium production, but the most accessible investment opportunities lie within dominant players outside of Asia. Learn more about investing in Lithium here.

• Cobalt: Cobalt, mostly mined as a by-product of copper and nickel, has also risen in popularity lately due to its role in lithium-ion batteries. This metal has been in a lot of conflict since it is often mined in difficult jurisdictions, such as The Democratic Republic of Congo. This makes it even more important to do thorough ESG research before investing.

• Graphite: As the only non-metal element that is a good conductor of electricity, it can be used in lithium-ion batteries, as well as in nuclear reactors and the refractory and steel industries. Most graphite mining companies are in China and often privately owned or only listed on Asian exchanges, making it difficult for investors to access them.

• Vanadium: vanadium redox batteries are currently generating excitement because they are reusable over semi-infinite cycles and do not degrade for at least 20 years, allowing energy storage systems the ability to bank renewable energy. However, these batteries are quite large compared to lithium-ion batteries and are better suited for industrial or commercial use than for use in electric vehicles.

• Manganese: Manganese contributes to certain lithium-ion battery chemistries, such as lithium-manganese oxide batteries. As such, hopes are high that demand for the commodity will rise in line with others that contribute to new energy sources.

Investing in areas such as battery technology also comes with a responsibility since metal mining significantly impacts our environment. Since certain metals are needed for the green transformation, the mining companies must work sustainably. Trending topics within this area are socially responsible investing and ESG investment funds, which can help to promote change within the mining sector. Examples of funds that promote change with regards to ESG are AuAg Silver Bullet, AuAg Precious Green, and AuAg Gold Mining.

• Investing in electric vehicle stocks: By buying stocks in companies that manufacture electric vehicles, the investor gets direct exposure to the rise of the EV industry.
• Invest in battery technology through EV battery stocks: by investing in companies that are producers of EV batteries, the investor gets direct exposure to the battery technology needed for the EV industry.
• Investing in mining companies: Investing in mining companies that extract the metals needed for EV battery production.
• Metal mining funds: provides broad exposure to companies in the mining sector that extract the metals needed for EV battery production.
• Invest in battery technology through green tech funds: provides broad exposure to green technology stocks.
• ETFs: there are sector-focused exchange-traded funds offering efficient exposure to mining or green tech companies benefiting from the rise in demand for EV batteries.