[Financial News] The ‘SOL Solid-State Battery & Silicon Anode ETF’ by Shinhan Asset Management is an ETF that invests in the value chain of solid-state batteries, known as the “dream battery” within the secondary battery industry. This product focuses on investing heavily in the value chain of silicon anode materials, which are key to improving driving range and charging speed, essential for the expansion of electric vehicle adoption.
According to Shinhan Asset Management on the 9th, the SOL Solid-State Battery & Silicon Anode ETF, established in early January, recorded a performance of 11.65% as of the 6th.
Kim Min-seong, ETF management team manager, stated, “This product is the only domestically listed ETF focusing on the next-generation battery value chain. In February, while the secondary battery industry index rose about 7.2%, the solid-state battery & silicon anode index increased by about 27%,” explaining that “the stocks with the greatest increase were material companies within the next-generation battery value chain, such as Daejoo Electronic Materials, Lake Materials, and Isu Specialty Chemicals.” However, he advised that it’s necessary to consider that estimating profits of related companies is currently difficult and volatility is high. For investors willing to endure volatility and invest a little faster, now is the right time.
As of the 5th, major stocks in which the fund has invested over 10% include Isu Specialty Chemicals (22.12%), Daejoo Electronic Materials (17.08%), Samsung SDI (15.23%), and Nanosys (11.82%).
Regarding future management plans, Manager Kim considered lithium sulfide supplying companies like Isu Specialty Chemicals and Lake Materials to be the most promising in the short term. Last month, the Hyundai Motor Group announced the construction of a pilot line for solid-state battery production, and LG Display also announced the acceleration of solid-state battery commercialization, which were highlighted positively. He mentioned, “As the competition for the commercialization of solid-state batteries among major cell manufacturers and automakers begins, the demand for lithium sulfide, an essential material for solid-state batteries, is expected to rise sharply.”
He particularly highlighted the anticipation for solid-state battery commercialization as a positive factor. However, the biggest issue for next-generation batteries, including solid-state batteries, is the ‘commercialization timing.’ If the anticipated commercialization timeline for major cell companies like Samsung SDI is accelerated, it is likely to be seen as a major favorable factor in the market. On the contrary, the biggest negative factor in managing this fund is the delay in the commercialization timeline.
Meanwhile, when investing in this fund, it was advised to take a long-term perspective as it may take some time for solid-state batteries to be commercialized. In fact, Samsung SDI, which is at the forefront in the field of solid-state batteries, aims for commercialization by 2027.
Manager Kim remarked, “Solid-state batteries are called the dream battery due to the high difficulty of commercialization, and their importance is increasing.” He explained, “Next-generation batteries are crucial not only for overcoming the ‘chasm’ in the electric vehicle market but also for expanding the robot market, including humanoids.” He added, “In the future, the humanoid robot market is expected to grow rapidly. The Hyundai Motor Group plans to expand its robotics business share to 20% in the long run,” and “investors who prefer investing in growth industries should take note from now on.”