Our world runs on energy. Whether it’s human beings generating their energy from the food they eat, modes of transportation using oil and gas, our homes, our offices, or various methods of communication — all run on some form of energy. We use many energy sources from coal, fossil fuels, natural gas, nuclear energy, solar energy and wind. But the world is shifting. It has been recognised that the types of energy we have relied on for the past centuries are not sustainable for the future. Throughout the world, companies are working to bring about the renewable energy revolution which will allow our world to run on cleaner, renewable energy. Will they succeed?
For a little more than a decade, batteries have powered phones and laptop computers. Fast forward to the present and lithium-ion batteries are playing a much larger role in the economy. Fully electric cars are becoming a reality. The increase in EVs and the battery market are only expected to grow more in the coming years. The current battery market in 2021 is estimated at $105 billion and is expected to reach $174 billion by 2026. While there are currently around six million electric vehicles on the road out of more than one billion regular passenger cars, BloombergNEF forecasts that by 2040, electric vehicles will comprise 57% of all new passenger cars. China automaker BYD has already stopped producing gasoline-only vehicles and will now focus future production on EVs and plug-in hybrids.
While high-performance batteries are one way to make better and more efficient use of renewable energies, they also have the added advantage of helping to avoid pollution, especially in the case of urban EVs. Yet, there is an even more fundamental aspect of batteries. Some devices we use today, such as smartphones and other portable electronic devices only became possible through lithium battery development. Therefore, as we move into the future, the success of high power battery development will be a prerequisite for increasing electric mobility and sustainable energy generation.
Invest in BatteryTech Smart Portfolio
The eToro BatteryTech Smart Portfolio captures the ecosystem of companies involved in the cycle of battery production. More succinctly, it provides exposure to the group of companies that are at the base of powering large parts of our future economy. The cycle begins with mining companies such as Lithium Americas and SQM which explore for Lithium deposits. Livent and Albemarle are chemical manufacturing companies that use Lithium to produce batteries for electric vehicles, mobile devices and more. Nio and Tesla are creating electric vehicles which use lithium batteries.
BatteryTech Smart Portfolio also includes energy storage businesses and technologies such as Sunrun and Generac. As we become increasingly reliant on electricity, the capacity to store it and have it readily available whenever needed will be critical. For example, energy stored in batteries can enhance grid reliability so that when it hits peak capacity, energy stored can help power the grid. Private citizens can also profit from energy storage systems such as solar panels, where companies put them on houses and the homeowners receive a cut of the electricity stored.
eToro Smart Portfolios are not just a group of assets; they are a thematic investment where you can invest in sectors, ideas, or regions that you believe in. BatteryTech Smart Portfolio allows you to invest in renewable energy, less pollution, and a more efficient future of energy.
Because our Smart Portfolios aim to capture big ideas, and megatrends making major impacts in the world, we view these as long-term investments. The advantage for you is that we conduct all the research and put together a diversified, low-risk portfolio based on the smart portfolio theme. What’s left for you is to focus on the big picture and invest in the themes you identify with.
The world in the 21st century is evolving at a rapid pace. Things today that we take for granted seemed distant only a few decades ago. The battery revolution is an exciting phenomenon happening before our eyes. By investing in the BatteryTech Smart Portfolio, you are taking an active role in creating the future.
Invest in BatteryTech Smart Portfolio
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