KB Asset Management has launched an ETF that targets the battery and battery recycling market. The MAST Global Battery Recycling and Production ETF targets companies that comprise the Indxx Global Battery Recycling and Production Index.
EV invests in companies involved in the business of battery recycling and manufacturing. It also targets companies involved in the production and refining of raw materials used in batteries.
The Battery Market Poised for Significant Growth
“The global battery market is poised for significant growth,” said KB Asset Manager’s ETF manager Kevin Min. And this growth is “driven by the rapid expansion of the electric vehicle market.”
He expects battery recycling "to play a vital role in mitigating supply shortages of key battery raw materials.” These materials include lithium, nickel, and cobalt.
“Major countries are implementing battery recycling policies to align with more environmentally friendly approaches to the disposal of waste batteries,” Min added. This positions “the adoption of battery recycling as an inevitable step towards a cleaner environment.”
EV is KB Asset Management’s first ETF listing in the U.S.
Ripe Investment Opportunities
Indxx President and Co-CEO Rahul Sen Sharma said that increased electric vehicle (EV) adoption has caused battery production to surge. And the global push for environmental responsibility and sustainability has created “a favorable environment for… the battery recycling market.”
He estimated that the battery recycling market will reach $23.2 billion by 2025.
Vaibhav Agarwal, chief product officer at Indxx, added that “batteries play a pivotal role in the trillion-dollar EV market.”
“[A]ll eyes are on battery production and recycling, which signal ripe investment opportunities,” he said.
As of December 21, the index has 38 constituents.
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