The funds are bottoming out in lithium batteries and photovoltaics

Are Lithium prices finally bottoming out?

Lithium prices may finally be bottoming out. Here's what that means for sector stocks and ETFs. Lithium, a key component in battery manufacturing, should benefit from increased demand for EVs in the fourth quarter of 2024. September's EV global unit sales number rose to 1.7 million, a new high.

Is China's lithium market bottoming out?

The sharp decline in China’s lithium market is showing signs of bottoming out. Smaller producers are looking to stem losses after the price of the key battery material collapsed by over two-thirds in just five months. Thin stockpiles and improved prospects for battery storage and electric vehicle sales suggest that demand may be about to recover.

Are there any specialist investment trusts focusing on lithium-ion battery projects?

As such, a number of specialist investment trusts listed on the London market from 2018 onwards focus on lithium-ion battery projects. But the share prices of the two investment companies focused solely on the British battery market, Gresham House Energy Storage Fund and Harmony Energy Income Trust, have plummeted since the start of 2023.

Are battery storage funds a good investment?

Battery storage funds, though, trade at bigger discounts to diversified peers. This can be explained by their greater reliance on market prices than, say, offshore wind developers. The latter seek government contracts that guarantee a price per unit generated to cover a good slug of expected output.

What is a lithium fund & how does it work?

It invests in companies mining and producing lithium, lithium compounds and lithium-related components. The fund's biggest holding is Arcadium, at 17% of assets as of Nov. 8, followed by Pilbara Minerals Ltd. (OTC: PILBF), at 9.3% of assets.

Did you catch a short seller if a lithium company climbed 20 per cent?

Some short sellers may already have been caught after the two producers each climbed around 20 per cent in February. The Solactive global lithium index, which tracks the performance of 40 of the largest and most liquid lithium-related companies, jumped 10 per cent in the same period, swinging from an almost 20 per cent decline in January.