BlackRock iShares expands thematics range with lithium and battery ETF2 Nov 2023 15:07
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https://citywire.com/selector/news/blackrock-ishares-expands-thematics-range-with-lithium-and-battery-etf/a2429530
TDT
BlackRock iShares has launched a new ETF building on its efforts to tap energy transition opportunities.
The iShares Lithium & Battery Producers (LITM) fund will invest in companies with high exposure to the lithium industry including miners, compounds manufacturers and battery producers
LTIM will track the Stoxx Global Lithium and Battery Producers index, which uses granular revenue and patent data to ensure ‘purity, materiality, diversification and liquidity’.
The launch follows that of the iShares Essential Metals Ucits ETF last month.
Lithium is expected to play a key role in the transition to a lower-carbon economy, a BlackRock spokesperson said. ‘In the midst of the accelerating transition to a low-carbon economy, lithium stands as a crucial element for electric vehicles and energy storage.
‘Companies involved in the production of lithium and lithium battery producers could benefit from an increasing demand in these technologies.
‘However, the supply of lithium is constrained due to its complex extraction process and the concentration of large deposits in selected countries creating opportunities for companies that can meet the world’s growing demand.’
The fund will aim to provide exposure to innovative companies alongside the lithium battery value chain, such as firms with patent exposure in lithium battery technologies. It will have a total expense ratio of 0.55%.
BlackRock added that it sees two focus areas for transition investors today. One is transitioning the core of portfolios to align with low-carbon objectives, while the second builds on exposure to potential beneficiaries, such as renewable energy, electric vehicles and the essential materials that power these low-carbon technologies.
Lithium is expected to see exponential demand growth – the highest among transition-related metals – over the coming decades, linked to the growth of EVs and renewable energy production, the asset manager said.
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