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The Investment Case For Battery Metals

The Blue Water Team

Advanced batteries are expanding throughout the energy revolution, from space-saving batteries to those that literally drive electric vehicles or provide energy storage. As a result, the metals used in the production of lithium-ion batteries (lithium, cobalt, manganese, and graphite) present a potentially lucrative investment opportunity. This article by Amplify Funds examines the case for battery metal investment. Amplify identifies the following reasons for adopting battery metal investment: 

Increased Demand for Lithium-Ion Batteries

Lithium-ion batteries (and therefore the metals used in them) are in high demand. With low market saturation in the electric vehicle (EV) market (1%), and numerous applications for these batteries (e.g. Robotics, AI, EVs), there is ample room in the market for this demand to continue to grow. 

Limited Battery Metal Supply

Demand for lithium-ion batteries will have to deal with factors that limit the availability of metals to manufacture these batteries (e.g. availability, location, production time) These limitations will continue to increase the value of battery metals, and the investments of those who add them to their portfolios. 

Increased Battery Innovations

Batteries will continue to evolve to become:

  • Cheaper
  • More efficient
  • More durable
  • Safer
  • More recyclable

As batteries improve, it will become more cost-effective and appealing to use them across a wide range of applications. Investment opportunities will similarly grow as batteries and battery metal usage continues to expand and improve.  We include batteries in our Tech Hardware investing ideas.