How to Get in On the Electric Vehicle Boom
By Norm Alster, The New York Times
Excerpts taken from article:
Amplify ETFs CEO Christian Magoon shares how investors can get involved with the EV boom with BATT.
One way is through investing in companies that make batteries for those vehicles and those that mine and process the minerals in the batteries.
The Amplify Lithium and Battery Technology E.T.F. has roughly $200 million in assets under management and tracks the EQM Lithium and Battery Technology Index. Christian Magoon, chief executive of Amplify E.T.F.s, said he looks for markets where governments, corporations and consumers are all spending money. Such is the case, he said, for electric vehicles. High oil prices are adding to the attractiveness of electric vehicles, he said. “If oil prices stay well above $100, that will accelerate the adoption of electric vehicles in the U.S.”
While electric vehicles may be good for the environment, mining the minerals for their batteries has environmental and social issues. “This is not a free and clear path as far as environmental concerns,” Mr. Magoon said. Lithium mining, for example, requires huge amounts of water. Cobalt mining in the Democratic Republic of Congo often uses child labor. For now, though, these problems have largely taken a back seat to the effort to find an alternative to gasoline engines.
Learn more: Amplify Lithium and Battery ETF (BATT)