According to a recent report, the global trend is very large: the number of electric vehicles will increase from 11m on the road to 145m in 2030.1 This in turn will drive various market segments.
Below are four examples of actions by elite-qualified fund managers who want to take advantage of this unit.
Sumitomo Metal Mining
Securities selection at Baillie Gifford Japan Trust
Sumitomo Metal Mining is a major stakeholder in the Baillie Gifford Japan Trust. Manager Andy Brown says the company has exposure to the extraction of nickel and copper, both members of the electric vehicle industry, both in terms of vehicles and the batteries used to power them.
He says: “They have a materials business and this is where they make a component called lithium-nickel oxide. This feeds into the cathodes of electric batteries and the main customers of this business are Tesla and Toyota. We believe it has fantastic growth prospects. “
Wuxi Lead Intelligent Equipment
Selection of values in Ninety One Global Environment
Wuxi Lead Intelligent Equipment mainly designs, manufactures and sells battery production equipment and services to the leading EV battery manufacturers in China. The company participates in the Global Environment Facility of the ninety-first.
Manager Deirdre Cooper says: “Sustainable decarbonisation will require a rapid transition to a greener, lower-carbon transport system. Wuxi is directly exposed to one of the largest electric vehicle markets in the world and, as such, is at the forefront of decarbonization.
“It’s also expanding sales internationally, with new customers like Northvolt.”
Selection of securities in the Rathbone Global Sustainability fund
Did you know that there are over 8,000 connection points within a typical EV? If someone goes wrong, it can range from a minor to a major inconvenience.
Aptiv provides fuse connectors that ensure the battery will be disconnected if a power surge reaches a potentially dangerous level, thus eliminating a potentially catastrophic event.2
The company participates in the Rathbone Global Sustainability Fund. Manager David Harrison states: “Since we launched, we have kept Aptiv in the background. It is a kind of nerve center of an electric vehicle.
“We think he’s well placed for the long haul and has a very advanced management team.”
Selection of shares of the Liontrust Sustainable Future Global Growth fund
This German manufacturer plays a key role in the supply of chips for automatic safety systems, as the content of semiconductors in cars and other forms of transport continues to grow.
Peter Michaelis, manager of Liontrust Sustainable Future Global Growth, says: “Infineon is the market leader in chips that power the semiconductors of electric vehicles.
“The company completed the acquisition of Cypress Semiconductor Corporation in April 2020, which it said was an important step in its strategic development toward offering“ the industry’s most comprehensive portfolio to link to the real world with the digital world and setting up digitization “.
1Source: Clean Technica – report from the International Energy Agency
See also: Invest in electric vehicle technology to overload your portfolio – The world is at the height of a major upheaval within the automotive industry and the source is lithium ion batteries. Donald Maxwell-Scott of Rowan Dartington on investing in electric vehicle technology.
Past performance is not a reliable guide to future performance. You may not recover the amount originally invested and your tax rules may change over time. The opinions expressed are those of fund managers and do not constitute financial advice.