S&P Global Core Battery Metals ETF
The first ETF to invest only in companies mining battery metals.
Global demand is soaring for the battery metals lithium, nickel and cobalt.
Driving that demand is rapid growth in the electric vehicle, consumer electronics and energy storage industries, which all rely heavily on lithium-ion batteries.
ION is the first ETF to invest only in companies mining battery metals.
Soaring Demand for Batteries and the Metals that Make Them
An energy revolution is underway, driving a huge surge in demand for the lithium-ion batteries used to power electric vehicles (EVs), consumer electronics, and the energy storage industry. In turn, the need for these batteries is fueling demand for lithium, nickel and cobalt metals needed to manufacture them.
As global lithium-ion battery manufacturing continues to take off, and demand for these critical metals soars, a potentially exciting investment opportunity is emerging.
Powering the Battery Revolution
Global battery demand is expected to grow at a 25% annual rate until 2030.1 But what is behind the battery-power surge? Here are three main drivers:
Consumers and automakers are turning to EVs, as governments around the world put policies in place to reduce or even eliminate fossil-fuel vehicle sales.
Over 50% of passenger vehicle sales could be EVs by 2035.2
56 million EVs could be sold annually by 2040.1
Smartphone, laptop and other portable consumer electronics growth—particularly in developing nations—is on the rise with tremendous room for growth.
Consider the smartphone ownership rates in four of the world's most populous countries:3
China: 66% | India: 35% | Indonesia: 62% | Pakistan: 21%
The use of home and commercial lithium-ion battery storage to store excess solar, wind and other types of power for later consumption is expanding.
Global energy storage is currently a $9 billion industry.4
The global energy storage industry is expected to grow ~3X by 2029.4
Tapping Into the Battery Metals Miners Opportunity
Focusing on the miners may be an effective way for investors to capitalize on the growing demand for battery power.
Miners May Benefit from Supply and Demand Imbalance
The limited supply of metals critical to manufacturing lithium-ion batteries is being significantly outpaced by demand. This could lead to sustained shortages potentially beneficial to battery metal miners, who control the rights to those resources.
Even though lithium production more than doubled to 100,000 metric tons over the last decade,5 365,000 additional metric tons was needed to meet 2021 demand.6
Experts suggest the world could face lithium-ion battery metals shortages by 2025.7
Miners Have Demonstrated Appealing Investment Characteristics
The mining industry has high barriers to entry. Building a new mine requires government cooperation and often faces environmental or regulatory hurdles. It also requires enormous capital investment, making it hard for new players to come into the space.
Miners have generally been profitable. They have already been producing attractive margins, in contrast to the generally unprofitable EV manufacturers and others in the battery supply chain.
Miners Have Solid Business Models
Miners generally have business models with operating leverage that lets them scale operations in response to market forces.
When demand and prices are high, they may ramp up production to increase potential earnings and profit margins.
When prices fall, they may reduce production or stockpile metals for processing later when prices increase.
Bloomberg Index Symbol
ProShares S&P Global Core Battery Metals ETF seeks investment results, before fees and expenses, that track the performance of the S&P Global Core Battery Metals Index.
The index is designed to track the performance of companies involved in the battery supply chain that are engaged in the mining of lithium, nickel or cobalt as determined by the index methodology.