The electric vehicle charging industry is expected to generate solid growth in the coming years, fueled by worldwide government initiatives to replace internal combustion vehicles with EVs. So, we think investors that are looking to capitalize on the industry’s growth in a relatively less risky way could bet on popular EV charging ETFs—Global X Lithium & Battery Tech ETF (LIT) and Amplify Lithium & Battery Technology ETF (BATT). So, let’s take a closer look at these names.Electric vehicles (EVs) are expected to eventually dominate the automotive market, thanks to favorable government policies worldwide amid the growing climate change concerns. As a result, the demand for EV charging solutions is also expected to rise significantly.
President Biden’s bipartisan infrastructure plan includes significant spending for the EV charging industry. He would like to see 500,000 EV charging stations built by 2030. According to a Technavio report, the EV charging station market is expected to grow at a 31% CAGR between 2021 - 2025.
Because it’s challenging to select the best stock in the crowded EV charging space, investors looking to capitalize on the industry’s growth in a less risky way could bet on quality ETFs exposed to EV charging stocks. Examples are Global X Lithium & Battery Tech ETF (LIT) and Amplify Lithium & Battery Technology ETF (BATT), which are rated A (which translates to Strong Buy) in our proprietary POWR Ratings system. So, we think these ETFs are worth considering for one’s portfolio.