ETF Idea Want to invest in the electric vehicle boom, but uns | FSMOne SG - Research Highlights

ETF Idea

Want to invest in the electric vehicle boom, but unsure how to? Check out this ETF

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• Government policies help to accelerate EV demand, by making them more affordable to the masses through subsidies, and creating the relevant infrastructure to support EVs.

• The surge in EV interest means that battery production must grow substantially to meet the expected demand. This helps to fuel the demand for lithium, a key component of today’s rechargeable batteries.

• Lithium demand is expected to increase by 233% during the next five years, rising from 300,000 megaton in 2020 to one million megaton by 2025.

• The lithium mining industry is unable to keep pace with this demand, and material shortages are expected to emerge, driving the price of lithium up, and benefitting upstream lithium miners in the process.

• Investors looking to tap into this megatrend should consider the Global X Lithium & Battery ETF. Our 2023 target price is USD 102, and this offers investors an upside potential of 22%.

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: Global X Lithium & Battery ETF (NYSE: LIT)