The the recent attention of the Tesla IPO attention has been also drawn to the manufacturers of electric car components, especially to the Holy Grail for the electric car…the battery.
Lithium is a major ingredient in the creation of batteries for electric cars but the extraction from the Lithium mines will be at odds with most SRI funds and advisers. For example in our screening process we eliminate the extraction industries which includes mining. Hence would this not eliminate Lithium mining from consideration?
Recently we received an update on an upcoming ETF IPO that will focus on the chain of Lithium production: the Global X Lithium ETF which will trade under the symbol LIT.
The top holding in the LIT ETF which will comprise a 20% weighting will be Chemical and Mining Company of Chile symbol SQM, a company we ordinarily would avoid for purchase.
The second holding is industrial giant FMC which is a major manufacturer of insecticides, crop production and pest control products and will represent just over 17% of the portfolio composition.
For a report on the state of the battery industry and its relative position in lieu of forthcoming developments and consumer adoption of electric vehicles we suggest the recently published report from Goldman Sachs: Americas: Clean Energy, Energy Storage
Brad Pappas
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