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eToro: The price of lithium has risen by 400% in one year, and that of electric batteries has reached an average of $ 9,000

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The growing emphasis on improving energy storage and efficiency has been central to the world’s economies, being a key factor in the transition to a renewable energy supply. Over the last decade, a sharp rise in the production of lithium-ion batteries has led to declining production prices for electric vehicles (EVs) to the point where they have become commercially viable.

“Batteries are critical to the transition to net zero and support major sustainability trends, including electric mobility and sustainable energy storage,” said Dani Brinker, Head of Investment Portfolios at eToro. “Given the estimates of the global battery market capitalization that is expected to reach $ 173 billion by 2026, from $ 105 billion in 2021, we wanted to give our customers an opportunity to invest in innovation. and in a fast-growing market. ”

The lithium segment alone accounts for 29.3% of the global battery market. With an electric vehicle industry heading for mass adoption, its market will be worth $ 800 billion by 2030 – from $ 160 billion in 2019. Investments in lithium production are expected to increase by 78.14% year-on-year, from 497,000 tonnes in 2021 to 636,000 tonnes by the end of 2022. The challenge for the industry will be to ensure that supply matches the pace of adoption of electric vehicles without compromising vehicle accessibility.

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Ben Laidler, Global Market Strategist at eToro, said: “In the last twelve months, we’ve seen lithium prices rise by more than 400%, and today the average battery price is about $ 9,000, which is more than 20% of the cost of the vehicle. Manufacturers have already expressed concern that deliveries will not be able to meet growing demand. As governments and companies strive to achieve their sustainability goals, investors are increasingly interested in companies offering solutions and technologies that support zero-zero mobility and energy transformation. ”

The BatteryTech portfolio offers the opportunity to invest in companies that contribute to the life cycle of batteries, from mining and refining companies that process lithium, nickel, manganese and cobalt, to battery manufacturers, electric vehicle manufacturers and companies that develop sustainable energy storage. Among the 30 stocks that make up the portfolio are some that change the rules of the game in the industry, including ABB, Bloom Energy, Tesla, NIO, Glencore and Sunrun. The full list of companies can be found here.

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Dani Brinker added: “By grouping a series of assets into one portfolio, we work hard and enable our clients to gain exposure to a fast-growing market and spread risk across a variety of assets. By investing in the BatteryTech portfolio, our customers will be able to take part in the sustainable transition and transform the way we use and store energy. “

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