China Corners Half of Global Battery Market, KARS Captures

Two Chinese companies, Contemporary Amperex Technology Co and BYD, have collectively surpassed more than 50% market share of the global battery market, reported Financial Times.

Contemporary Amperex, more commonly known as CATL, is the largest producer of batteries worldwide and doubled battery sales last year through November, creating enough batteries for 3.3 million standard-sized EVs. In 2022, it grew its market share to 37.1%, up from 32.2% in 2021.

A recent report from SNE Research out of Korea also found that BYD, an EV manufacturer and China’s second-biggest battery cell producer, tripled its sales last year through November and now has 13.6% of the global battery market share. It surpassed LG in 2022, the former number two in battery manufacturing worldwide.

EV demand in China soared last year, doubling sales in 2022 to between 6.4-6.5 million units, although sales are anticipated to begin dropping off this year as government subsidies within China expire. That said, global EV demand is expected to pick up in the coming years and CATL is already looking to expand into European and North American markets, having just recently begun production in Germany, its first plant outside of China.

Capturing the Major Players in the EV Battery Market

The KraneShares Electric Vehicles and Future Mobility ETF (NYSE: KARS) offers a good solution for investors looking to capture the potential growth of major EV producers globally.

The fund takes not just a global approach to EV exposure but also invests along the entirety of the value chain, offering diversification for EV investors. KARS invests in battery manufacturers such as Contemporary Amperex Technology Co. (CATL) at a 4.76% weight and BYD at a 3.00% weight.

KARS measures the performance of the Bloomberg Electric Vehicles Index, which tracks the industry holistically, including exposure to electric vehicle manufacturers, electric vehicle components, batteries, hydrogen fuel cells, and the raw materials utilized in the synthesis of producing parts for electric vehicles.

KARS invests in many familiar car companies such as Tesla, Ford, and Mercedes-Benz, and major Chinese EV manufacturers such as Li Auto, Nio, and BYD. It also goes a step beyond and invests in the companies that contributed to the EV value chain, such as Samsung, LG, Panasonic, and Albemarle.

It has an expense ratio of 0.70%.

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