The future of energy is going the way of green, and unglamorous battery makers are leading the charge.
Batteries have long been an essential but nearly invisible part of our daily lives. These devices have quietly powered our mobile phones, laptops and home alarms in the background, and their profile is about to get elevated.
Batteries owe their newfound status partly to the growing popularity of electric vehicles (EV) which get their charge from batteries. Last year, EVs were 5 percent of the global automotive market; in less than a decade, that ratio is expected rise five-fold to 25 percent.1 The other area batteries are expected to find a new market is on the electricity grid, one idea being energy stored from renewable sources in large-format batteries can be delivered to the grid.
The Battery Charged motif has underperformed the S&P 500 if you look at its one- and two-year returns; it did, however, beat the market over the last three months, up 24 percent versus the broad market’s 12 percent. Be sure to check out what I said about batteries on my LinkedIn post. After you read it, let me know if you will ever look at a battery the same way.
Goldman Sachs, The Great Battery Race
Electric Drive Transportation Association via the Los Angeles Times