EV Charging Infrastructure ETF Monthly Report | December

29 December 2023

EV Charging Infrastructure ETF Key Takeaways | December

On December 1, NIO (9866.HK) announced that a total of 15,959 vehicles were delivered in November, amounting to 12.6% year-over-year. Overall, NIO delivered a total of 142,026 new vehicles year-to-date in 2023, which represents an increase of 33.1%, bringing the cumulative total of NIO deliveries to 431,582.

ENECHANGE Ltd. (4169.T) and Daito Trust Construction Co. announced their collaboration to promote the installation of EV charging ports in new condominiums. With the Japanese government’s goal to achieve a 100% ratio of EVs in new passenger car sales by 2035, a target of deploying 100,000 to 200,000 charging ports for condominiums has been set. The close collaboration will help to progress the goals for EV charging infrastructure in Japan.

At the beginning of November, ChargePoint Holdings Inc (CHPT.N) announced that their Express Plus Power Link 2000 will enable the launch of the fastest charging network in North America with the Mercedes-Benz HPC NA network. The Power Link system is capable of delivering charging speeds of up to 500kW and therefore will set a new standard within the EV charging industry. It will further boost the availability of fast, reliable, public DC charging infrastructure.

ChargePoint Holdings Inc (CHPT.N) ramps up the production of Tesla-compatible NACS EV connector chargers for AC and DC charging solutions. This further contributes to ChargePoint’s commitment to delivering a seamless charging experience for all EV makes and models. It will be the first company within the charging industry to ship a native DC connector that is compatible with Tesla vehicles.

On November 9, Blink Charging Co. (BLNK.OQ), a leading manufacturer, owner, operator, and provider of EV charging equipment and services announced a record third quarter for 2023 with 152% of revenue growth amounting to $43.4 million and a 167% increase in gross profit. The results reflect a continuation of the momentum and growth, accelerated by strong demand for charging equipment and services, as well as an increase in network fees.

Shoals Technologies Group (SHLS.OQ), a leading provider of electrical balance of system (“EBOS”) solutions for solar, battery storage, and electric vehicle charging infrastructure reported their results for the third quarter of 2023. They announced a record quarterly revenue of $134.2 million, with a 48% YoY. The company expects to further enhance production efficiency with attractive margins to serve growing demand in the next years. 

On November 13, Altus Power Inc. (AMPS.N), offering on-site solar generation for Electric Vehicle charging, published its third quarter 2023 financial results. Revenues have increased to $45.1 million, which amounts to 48% year-over-year. Moreover, recent business highlights included that approximately 75MW of new assets will finish construction by the end of 2023 as well as the introduction of Altus IQ, the industry’s first AI-powered comprehensive carbon accounting platform for businesses. 

On December 5, Evgo (EVGO.OQ), General Motors, and Pilot Travel Centers LLC announced they are partnering up to deploy accessible chargers, with 100 fast charging stations until the end of 2023. About 200 locations will be targeted in 2024, opening up a reliable coast-to-coast EV charging network. The charging locations will make long distance travel more reliable, with centrally-located fast chargers monitored and available around the clock. By the end of 2023, it is expected that at least 25 Pilot and Flying J travel centers will feature EV fast charging.

 

Sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance. When you invest in ETFs, your capital is at risk.

Macro Outlook

The European Parliament is adopting new rules for more EV charging stations. They are part of the “Fit for 55 in 2030 package” which aims at reducing greenhouse gas emissions by at least 55% by 2030, compared to 1990 levels. It was negotiated that EV charging points for cars with a minimum 400kW output will have to be deployed at least every 60km along the main routes (core TEN-T network) by 2026.

Ireland introduced the first Electric Vehicle Charging Infrastructure Strategy with the aim to set a foundation for EV charging that is more publicly available. It is part of the Climate Action Plan (CAP23) that sets the objective of one in three private cars being electric by 2030. The expectation is that 80 percent of charging will take place at home, but the missing 20% have to be accounted for with reliable public charging infrastructure. The strategy includes the deployment of chargers every 60km across Ireland’s motorways. The implementation plan is subject to review on an annual basis.

India is seeking bids for an $960 million incentive program to support the production of EV batteries. Winning bidders are required to set up advanced chemistry battery plants with an output of 20-gigawatt hours. Companies that might act as investors for instance include Korea’s LG Energy Solution Ltd. and local Mahindra & Mahindra Ltd.

A summit with  representatives from the automotive industry and members of government was held in Germany in late November. The focus of the meeting was to promote electromobility, especially the production of affordable EVs and the expansion of EV charging infrastructure. Participants emphasized that semiconductor and battery production capacities have to be build up. Moreover, the automotive industry has a clear commitment to invest in charging infrastructure itself, to further accelerate EV adoption.

The Chinese non-tesla EV Supercharging program is going full-scale with hundreds of sites available for other EVs. Since the program launched in April, the number of non-Tesla supercharging sites has increased to over 350 (April 2023: 10). Opening the network is relatively easy on China because all EVs are compatible with the local GB/T standards – Tesla and non-Tesla vehicles.

 

All sources available upon request. Please note that all performance figures are showing net data. Past performance is not indicative of future performance. When you invest in ETFs, your capital is at risk.

 

EV Charging Infrastructure ETF Performance
 
As of 30/11/2023

 

1M

3M

6M

YTD

12M

SI

Electric Vehicle Charging Infrastructure UCITS ETF

21.36%

-33.40%

-43.98%

-49.37%

-58.71%

-73.58%

Solactive Electric Vehicle Charging Infrastructure Index

21.41%

-33.33%

-43.71%

-48.90%

-58.28%

-73.17%

 


 Please note that all performance figures are showing net data.
 Source: Bloomberg / HANetf. Data as of 30/11/2023

Performance before inception is based on back-tested data. Backtesting is the process of evaluating an investment strategy by applying it to historical data to simulate what the performance of such a strategy would have been. Back-tested data does not represent actual performance and should not be interpreted as an indication of actual or future performance. Past performance for the index is in USD. Past performance is not an indicator for future results and should not be the sole factor of consideration when selecting a product. Investors should read the prospectus of the Issuer (“Prospectus”) before investing and should refer to the section of the Prospectus entitled ‘Risk Factors’ for further details of risks associated with an investment in this product. When you invest in ETFs and ETCs your capital is at risk.

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