Recharge Your Growth Allocation With This Lithium ETF

Under the proverbial hood, BATT is comprised of companies poised to capture future growth from three sub-sectors: battery storage solutions, battery metals & materials, and  electric vehicles (EVs). The AI rally confirmed that the world will require copious amounts of electricity in order to continue running. In turn, this will require the capability to maintain an electrical charge, which lithium-ion technology is capable of doing. Hence, the growth opportunity inherent in BATT.

Furthermore, BATT tracks the EQM Lithium & Battery Technology Index, which includes global exposure for added diversification and to capture these worldwide trends. As of September 30, about 50% of the country allocation is split among China and the U.S. However, it includes exposure to countries like Australia, Canada, Japan, and others.

Third party research firm Data Bridge forecasts that the global lithium-ion battery market could reach a compounded annual growth rate (CAGR) of 18% in just seven years. The demand for renewable energy can certainly drive this growth. The International Energy Agency (IEA) predicted four years earlier that global renewable energy capacity is expected to grow 60% by the year 2026.

“As renewable energy production becomes more widespread, the need for efficient storage systems to manage this energy and stabilize the grid grows,” the Data Bridge report said.

One of the reasons fueling this trend is an area where BATT invests: EVs. As of November 10, the fund’s second largest holding is Tesla, with a 6.5% allocation.

Adoption of EV usage has been initially slow. However, government incentives could help bring more buyers to EVs in the U.S. Globally, the adoption is already materializing at a rapid clip.

Data from Rho Motion revealed that $2.1 million EVs were sold during the month of September. That represents a monthly record. From January to September 2025, global EV sales have risen by 26% to 14.7 million units. Europe is seeing the largest growth year-to-date, with China coming in second.

“Global EV sales topped 2 million units in a single month for the first time, driven by record-breaking demand across major markets,” said Rho Motion’s data manager Charles Lester. “The US surged ahead as buyers raced to claim expiring tax credits, the UK hit new highs on the back of fresh registration plates and the Electric Car Grant, and South Korea set records thanks to Tesla, Hyundai, Kia, and rising BYD imports. Year to date, EV sales have reached 14.7 million – up 26%.”

Every growth opportunity doesn’t come without its set of challenges. For lithium, macroeconomic headwinds include price volatility amid high supply, geopolitical pressures, and governmental policy changes. That latter, however, could be a prime factor in setting lithium prices on an upward trajectory.

As the Dallas Fed pointed out, one of the catalysts that could provide further tailwinds for lithium prices is the ongoing backing of the U.S. government. With a desire to reduce reliance on nations such as China and bolster domestic production, governmental policies that support mining will be crucial for the industry.

“Government support could prove decisive in determining which projects move forward and, therefore, to what extent U.S. production grows,” the Dallas Fed said. “Indeed, federal interest in securing domestic production has already shaped the industry through billions in subsidized loans and grants and with policies intended to boost demand for domestically produced lithium.”

This makes BATT an ideal buy-and-hold opportunity that could play out in its favor in the long run.

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