Global X Battery Tech & Lithium ETF
Open To Retail Investors

Global X Battery Tech & Lithium ETF

Global X Battery Tech & Lithium ETF
Global X Battery Tech & Lithium ETF
|
Last Updated 03.04.2024

Invest in the energy storage and production megatrend.

Global X Battery Tech & Lithium ETF
Min. Investment
$500
Objective
Growth
Structure
ETF
Asset Class
Shares/​Equity
Liquidity
Listed
Closing Date
Open Ended
View More Details
Min. Investment
$500
Objective
Growth
Structure
ETF
Asset Class
Shares/​Equity
Liquidity
Listed
Closing Date
Open Ended
Industry
Diversified
Funding Stage
Listed
Security Type
Unit in a trust
Target Capital
N/​A
Availability
Open for investment

Management Fees
0.69% p.a. of NAV
Performance Fees
Nil
Benchmark
Solactive Battery Value-Chain Index
Investment Time Frame
5+ Years
Number of Investments
29 shares
Distributions
Annually

Global X Battery Tech & Lithium ETF (ASX: ACDC) offers investors exposure to global companies developing electrochemical storage technology and mining companies producing battery-grade lithium.

 

The Global X Battery Tech & Lithium ETF (ACDC) seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Battery Value-Chain Index.

ACDC offers investors exposure to global companies developing electro-chemical storage technology and mining companies producing battery-grade lithium. ACDC aims to provide investors with a return that, before fees and expenses, tracks the performance of the Solactive Battery Value-Chain Index.

  • Lithium accounts for 85% of commissioned, utility-scale battery storage worldwide1.
  • Australia has the largest battery storage reserve in the world. The Tesla-built South Australian Hornsdale Power Reserve has a storage capacity of 150MW/193.5MWh2

 

1 https://about.bnef.com/new-energy-outlook/

2 https://www.caradvice.com.au/843957/tesla-battery-south-australia/

A battery is a device consisting of one or more electrochemical cells that can generate electrical energy from chemical reactions. Traditional batteries have a lead or alkaline base, but lithium-ion batteries have transformed the space.

 

New electrochemical technologies such as lithium, lead-carbon or flow batteries continue to be developed. Batteries are used to power a range of items, from personal consumer electronics like phones to electric vehicles to industrial uses such as energy grid storage.

 

The value chain for battery technology ranges from mining companies, mining for metals like lithium, to manufacturers of battery storage and storage technology providers. All are potential beneficiaries of the anticipated growth in this industry.

Battery technology is central to the growth of renewable energy and electric vehicle usage.

  • Wind and solar energy are forecast to supply around 48% of the world’s electricity needs by 20501.
  • Over half of all new passenger vehicles sold by 2040 will be electric vehicles2.

 

To support this growth, the battery market is anticipated to reach US$90bn by 20253 and battery storage will need to expand 300 times existing capacity to meet requirements in 2050 (excluding electric vehicles)4.

1  https://about.bnef.com/new-energy-outlook/

2  https://about.bnef.com/electric-vehicle-outlook/

3  www.mordorintelligence.com/industry-reports/global-battery-market-industry/

4  https://www.irena.org/publications/2020/Apr/Global-Renewables-Outlook-2020

1 US Office of Energy Efficiency & Renewable Energy, Jan 2020

  • ACDC can be used as a tactical tilt towards emerging technologies in the industrials and materials sector.
  • As a thematic tilt towards megatrends, including the trend towards renewable energy and electric vehicles.

  • The index universe is selected from two databases: Clean Horizon’s Energy Storage Source to select energy technology manufacturers and
  • Fastmarkets’ Metal Bulletin to identify mining companies.
  • To be included in the index, companies must have a primary listing on a major, developed market exchange, have a free float capitalisation of at least US$200m and not be classified by FactSet as an ‘Energy’ company.
  • The index universe includes an environmental, social and governance (ESG) screen that removes companies non-compliant with the UN Global Compact Principles; and companies producing revenue from Tobacco, Weapons, Small Arms, Coal, Conventional & Unconventional Oil & Gas, Gambling, Adult Entertainment, and Alcohol. Further details regarding the ESG exclusions are available at https://www.solactive.com/.
  • Companies are weighted equally at each semi-annual rebalance in May and November.

Click here to view our latest Performance Details.

The issuer of units in Global X Battery Tech & Lithium ETF (ACDC) ARSN: 605 617 490 is the responsible entity of the Fund, being Global X Management (AUS) Limited (AFSL 466778) (“Global X”). The product disclosure statement (PDS) for the Fund contains all of the details of the offer of units in the Fund. Copies of the PDS are available from Global X Management (AUS) Limited or at www.globalxetfs.com.au. In respect of each retail product, Global X has prepared a target market determination (TMD) which describes the type of customers who the relevant retail product is likely to be appropriate for. The TMD specifies distribution conditions and restrictions that will help ensure the relevant product is likely to reach customers in the target market. Each TMD is available at www.globalxetfs.com.au. The information provided in this document is general in nature only and does not take into account your personal objectives, financial situations or needs. Before acting on any information in this document, you should consider the appropriateness of the information having regard to your objectives, financial situation or needs and consider seeking independent financial, legal, tax and other relevant advice having regard to your particular circumstances. Any investment decision should only be made after obtaining and considering the relevant PDS and TMD. Investments in any product issued by Global X are subject to investment risk, including possible delays in repayment and loss of income and principal invested. None of Global X, the group of companies which Mirae Asset Global Investments Co., Ltd is the parent, or their respective directors, employees or agents guarantees the performance of any products issued by Global X  or the repayment of capital or any particular rate of return therefrom. The value or return of an investment will fluctuate and an investor may lose some or all of their investment. Past performance is not a reliable indicator of future performance. The financial instrument is not sponsored, promoted, sold or supported in any other manner by Solactive AG nor does Solactive AG offer any express or implicit guarantee or assurance either with regard to the results of using the index and/or Index trademark or the Index Price at any time or in any other respect. The Index is calculated and published by Solactive AG. Solactive AG uses its best efforts to ensure that the Index is calculated correctly. Irrespective of its obligations towards the Issuer, Solactive AG has no obligation to point out errors in the Index to third parties including but not limited to investors and/or financial intermediaries of the financial instrument. Neither publication of the Index by Solactive AG nor the licensing of the Index or Index trademark for the purpose of use in connection with the financial instrument constitutes a recommendation by Solactive AG to invest capital in said financial instrument nor does it in any way represent an assurance or opinion of Solactive AG with regard to any investment in this financial instrument. Solactive AG will not be responsible for the consequences of reliance upon any opinion or statement contained herein or for any omission.


Information current as at 18 August 2022.

About Global X ETFs 

Global X ETFs is a leading global ETF provider with a growing range of cost-effective and innovation-led products which are built to help investors and their advisers achieve better investment outcomes. While we are distinguished for our Thematic Growth, Income, and International Access ETFs, we also offer Core, Commodity, and Digital Assets funds to suit a wide range of investment objectives. Explore our ETFs, research, and insights, and more at www.globalxetfs.com.au.

Global X is a member of Mirae Asset Financial Group, a global leader in financial services, with more than US$528 billion in assets under management worldwide.¹ Mirae Asset has an extensive global ETF platform ranging across the US, Australia, Brazil, Canada, Colombia, Europe, Hong Kong, India, Japan, Korea, and Vietnam with almost $100 billion in assets under management.²

¹ Assets under management as at March 2023, Mirae Asset Global Investments 

² Assets under management as at June 2023, Mirae Asset Global Investments 

Click here to view our Product Flyer.

Click here to view our Fact Sheet.

Click here to view our Product Disclosure Statement.

Click here to view our Target Market Determination.

Click here to view our past and current Announcements and Notices.

Batteries are a growth area as they are essential for storing clean energy. As the world transitions away from fossil fuels and towards solar, wind and hydropower, the demand for batteries is forecast to increase.
Batteries are also crucial for electric cars, which are expected to steadily displace internal combustion engine cars over the coming decades.


Outside of clean energy, batteries are required for mobile devices such as phones and laptops, which are being purchased in ever-greater numbers.


Lithium is the crucial element supporting batteries, as lithium-ion batteries are cheaper to produce, faster to recharge and longer lasting than alternatives.

Batteries are essential for supporting renewable energy and the transition away from fossil fuels. Recognising this, state and Commonwealth governments have introduced subsidies and programmes designed to boost the uptake of batteries and electric cars.


Examples include South Australia’s Hornsdale Power Reserve, Queensland’s battery manufacturing precinct, and the Commonwealth government exempting electric vehicles from fringe benefits and import taxes.


ACDC also includes an environmental, social and governance (ESG) screen aimed at severely restricting the ability of fossil fuel companies to be included in the index. The index prevents companies that make more than 25% of their revenue in oil or gas, or more than 30% of their revenue from thermal coal, from being included in the index.

The index provider, Frankfurt-based Solactive AG, uses ESG data sourced from Minerva Analytics, an ESG research and data company based in the UK. Minerva conducts proprietary research on companies’ sustainability and governance activities to build data sets. Minerva’s datasets are used by Solactive to determine the final constituents in the index.


The strength of this data-driven approach to ESG is that it can be incorporated into an index, allowing for potentially lower-cost passive management. Limitations and risks of this approach include a lack of direct stewardship and the potential for data errors.

The index universe for energy storage technology providers is comprised of projects identified from Clean Horizon’s Energy Storage Source, classified as electrochemical, having an energy capacity of at least 1 MWh and identified as an energy storage technology manufacturer. The companies must also have a primary listing on an eligible exchange – if a subsidiary, then the parent company will be identified as part of the universe instead.


The index universe for mining companies is taken from Fastmarkets' Metal Bulletin, including all companies producing battery-grade lithium, with their primary listing on an eligible exchange.


To be included in the index, companies must have a free-float capitalisation of at least US$200m (lower for existing constituents), have a minimum three-month daily trading average of US$1m, and not be classified by FactSet as an “Energy” company.

Companies in ACDC are equally weighted, meaning each holding makes up the same portion of the portfolio at each semi-annual rebalance and therefore contribute equally to overall performance.

The choice of an equal weighting scheme provides investors exposure to the overall sector without a bias towards large-cap stocks, which tend to dominate where holdings are weighted by market capitalisation.

The value chain for battery technology ranges from mining companies to manufacturers of battery storage and storage technology providers. It is a diverse range of industries spanning the globe and ETFs like ACDC can assist investors in obtaining diversified exposure to newer technologies as well as more established companies. In fast-moving and emerging industries, it can be hard to pick individual winners, so investing in an ETF like ACDC allows investors to access the potential growth across the battery technology megatrend.

ACDC can be used as a tactical tilt towards emerging technologies in the industrials and materials sector.

As a thematic tilt towards megatrends, including the trend towards renewable energy and electric vehicles.

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Statutory Statement

The issuer of this product is identified at the top of this page. The PDS and target market determination for the product are available in the Documents section of this listing. Prospective investors should consider the PDS before deciding to acquire the product. This product listing was vetted by and approved by the product issuer identified above before publishing. Investment Markets (Aust) Pty Ltd AFSL 527875 (IM) is not the issuer of the product.

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