Tap into battery power

If you believe in battery storage’s potential to transform the energy market, there is a new exchange traded fund that invests in battery storage and lithium.

ETFS Battery Technology and Lithium (ASX: ACDC) tracks the performance of battery technology stocks and four lithium producers. Lithium batteries are a key component of laptops, smartphones, tablets and electric cars.

The ETF invests in 28 companies including lithium producers such as Australia’s Orocobre, battery producer Samsung SDI, electric vehicle pioneer Tesla and industrial specialist Toshiba. In addition to lithium, it will also invest in lead, nickel, sodium and zinc batteries.

“Energy storage is undergoing a massive transformation in Australia and the rest of the world, with lithium considered to be one of the lightest and most efficient technologies,” said Kris Walesby, head of ETF Securities Australia, a locally owned and independent ETF provider.

Walesby says its basket of stocks will be reassessed as other battery technologies such as hydrogen emerge over the longer term.

The new ETF is benchmarked against the Battery Value-Chain Index created by the German index provider Solactive.

The index has delivered an annual return of 15% over the past five years. The investment management fee is 0.69%pa.