Lithium Energy, Electric Vehicles and Energy Storage
The Super Group has identified the growth in demand for lithium based power storage technology and the related move to electrification of the world’s vehicle fleet as a global, long term trend which currently offers investors a potentially significant growth opportunity. Following extensive research into current investment opportunities TSG has established a Model Portfolio to assist clients in gaining exposure to this theme.
The Model Portfolio encompasses established major Lithium raw material suppliers, established Lithium cell manufacturers and Electric Vehicle manufacturers. One holding in the Portfolio is Tesla (TSLA), as both an emerging cell manufacturer and a key player in the burgeoning market for both electric vehicles and lithium battery based storage for domestic, industrial and grid applications. Tesla has attracted enormous publicity and investor attention, however it is only one among many companies which are well placed to take advantage of this opportunity.
The Portfolio encompasses exposure to each of the three segments of lithium or related raw materials; battery manufacture; and electrical vehicles and other deployment technologies (including in particular home or grid storage).
The Portfolio invests in established companies listed on major stock exchanges. All investments within the targeted areas will be subject to extensive due diligence to ensure that the Portfolio only invests in quality companies that are well placed to benefit from the underlying themes, with attributes such as proven resource reserves; manufacturing capacity; and intellectual property assets which indicate that they will retain or assume leadership positions in the industry.
The objective of the Portfolio is to provide exposure to the interconnected themes of increased demand for rechargeable batteries, the growth in the use of battery based storage in homes and in the grid, and the emergence of electric power as the major alternative to internal combustion engines (ICE) in transport.
The global imperative of reducing carbon emissions and addressing human induced climate change has spurred innovation across all carbon intensive parts of the economy, including in particular energy generation and transport. A key enabling technology for carbon reduction in both these sectors is lithium based energy storage- ie lithium rechargeable batteries.
The role of batteries in electric vehicles is obvious. Lithium based batteries have proven to be the most effective and efficient technology currently available to power electric vehicles and significant investment is currently underway to increase manufacturing volume.
Less obvious is the role battery storage will play in the electricity grid of the future. Battery storage will be increasingly deployed at both the end user level and within the grid to facilitate the use of renewable energy options such as solar and wind. Storage is essential to enable a matching of supply (eg power generation when the sun is shining) with demand (eg powering a home through the evening peak). Storage facilitates the efficient use of energy generation assets and can also play a role in deferring or negating the need for investing in new generating or distribution capacity.
The information on this website has been prepared for general information purposes only and does not take account of your financial situation or objectives.