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Opportunities In New Transportation Technology

The Blue Water Team

In this article, Krane Funds Advisors explores the fields of electric cars, autonomous vehicles, and shared mobility.

Electric cars, increased demand for the lithium-ion batteries and non-ferrous metals used in these electric vehicles, connectivity capabilities within vehicles, the advent of autonomous driving, and the advent of shared mobility (i.e. ridesharing), all constitute what Krane refers to as future mobility. 

All of these elements of future mobility are connected. For example, lithium ion batteries power electric vehicles. Electric vehicles make autonomous driving, shared mobility, and connectivity possible.  Together, all of these elements work together to create a thriving future mobility "ecosystem."

Electric Vehicles

Electric vehicles (EVs) are rapidly becoming popular and cost-effective. By 2025, it is estimated that China will account for about half of all EV sales around the world. The continued rise of EV popularity is being driven by governmental subsidies, as the positive environmental impacts of EVs present an appealing alternative to traditional vehicles. 

Lithium-Ion Batteries and Non-Ferrous Metals

The application of lithium-ion batteries and non-ferrous metals in electric vehicles is expected to increase demand for these items by more than 1,800 percent by 2030. In addition, anticipating a nine fold increase in copper demand, some mining companies have already begun increasing production. 

Internet of Vehicles

In the next two years, virtually all new vehicles will be connected to the Internet. This advance in connectivity should generate $273 billion by 2026. 

Autonomous Vehicles

As electric vehicles and related technology advance, vehicles that possess features allowing them to operate on their own will be manufactured in larger and larger quantities. By 2035, 25 percent of new cars will possess autonomous features, to the tune of 30 million new autonomous cars per year. 

Shared mobility

Shared mobility, in the form of ride hailing (i.e. Uber) and car sharing, is also growing rapidly. For example, ride hailing businesses should serve more than 1.5 billion people by 2022.

When it comes to advancing future mobility in these five areas, China is positioned to lead the way. The nation leads in sales of EVs, provides subsidies for EV purchases, and has set up hundreds of thousands of public stations for charging electric vehicles. 

China is not the only part of the world that is contributing to future mobility. Europe and the United States are also playing an important role. Consider the following:

  • China is first in the Electric Vehicle Stock World Ranking
  • Europe is second in the Electric Vehicle Stock World Ranking
  • The U.S. is third in the Electric Vehicle Stock World Ranking 

Thanks to the growth and potential within the field of future mobility, future mobility ETFs hold a great deal of promise for investors looking for strong investment options.