Investors may have room for optimism in the coming year and one key reason is the strides being made in battery technology, which is key to unlocking the potential of renewable energy. Batteries will be essential as we move towards a low-carbon economy, powering electric vehicles and storing energy generated by wind and solar farms.
While important changes like the opening up of investment opportunities in China’s financial sector and the possible impact of the Biden administration are all exciting developments for investors, it is batteries that are poised to change the world. Two recent events have caught the eye of investors: Tesla’s admission to the S&P 500* and the UK’s plan to ban the sale of new cars fuelled solely by petrol or diesel from 2030.
Aanand Venkatramanan, Head of ETF Investment Strategies at Legal & General Investment Management says: “Epitomised by the rise of Tesla, a company that we believe should be recognised as much for its battery innovation as its car design, these welcome steps illustrate how investors can focus on batteries principally as an element of the electric-vehicle revolution.”