The next great power boom isn’t happening in oil fields. It’s happening inside giant boxes filled with batteries. Battery energy storage systems (BESS) are large, controllable banks of batteries, inverters, and controls – and the Amplify Lithium & Battery Technology ETF (BATT) can help you capitalize on demand for them, says Sean Brodrick, editor at Weiss Rating Daily.
BESS store electricity and release it later, typically for 1-4 hours at full power. They are becoming a core grid asset because they solve the mismatch between variable renewables and demand while also providing fast grid services and customer-side bill management.
Battery storage is rapidly becoming one of the most important pieces of infrastructure in the modern electric grid, right alongside power plants, pipelines, and transmission lines. The reason is simple: Renewable energy doesn’t run on demand. The sun sets. The wind fades. But electricity demand never stops.
Analysts estimate the global BESS market could more than double to roughly $106 billion by 2030, with a compound annual growth rate of around 16%.
The best way to play this trend is to buy individual BESS names. That’s what we’re doing. But the second-best way to play this trend is with an ETF that provides exposure to battery storage systems.
BATT is a portfolio of global companies generating material revenue from lithium battery technology across three segments: battery storage solutions, battery metals and materials, and electric vehicles. BATT carries an expense ratio of 0.59%. It has approximately $126 million in assets under management and holds 59 individual equities.
After a war scare in May, BATT is now flying again.
Recommended Action: Buy BATT.
