BlackRock launches fund for energy storage stocks

New York-based investment powerhouse BlackRock has acknowledged the potential of energy storage by unveiling an ETF focused on storage and hydrogen-related shares.

ETFs are collections of stock, often themed, which are grouped for investors to subscribe to in order to avoid the risk involved in purchasing shares in individual companies.

BlackRock’s new iShares Energy Storage and Hydrogen fund will itself track the Stoxx Global Energy Storage and Hydrogen index, administered by Deutsche Börse Group majority-owned Stoxx, which specializes in grouped funds.

With the BlackRock ETF listed on the Euronext Amsterdam exchange – and costing 0.5% of the figure invested, per year, to join – the US-based investment house said the biggest three companies in the Stoxx index its ETF will track are Chinese battery giant CATL; US-based industrial gas and chemicals supplier Air Products & Chemicals, Inc; and Japanese chemicals business Asahi Kasei Corp. Those stocks comprised 8.2%, 7.7%, and 7% of the Stoxx index at launch of the Blackrock ETF, the US-based investor announced yesterday.

Reporting the launch of the BlackRock product, ETF-related financial website etf.com stated CATL could help keep the price of critical battery material lithium depressed after announcing on Monday – alongside Chinese lithium ferro-phosphate cathode material supplier Lopal Tech Co. – that it would resume lithium refining after a five-month hiatus.