While investors fixated on artificial intelligence throughout 2025, the battery supply chain quietly delivered exceptional returns, powering everything from electric vehicles to grid storage.
A Supply Chain Play, Not Just an EV Bet
Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) returned 66% year-to-date in 2025, nearly tripling the Nasdaq-100’s 22% gain. This performance came from diversified exposure across the entire battery ecosystem: lithium miners, copper producers, battery component manufacturers, and select EV companies.
Top holdings reveal this strategy. Mining giant BHP Group leads at 7.25%, followed by Contemporary Amperex Technology (CATL) at 6.72%, Tesla at 6.35%, and BYD at 4.79%. Copper miner Freeport-McMoRan and lithium producer Albemarle round out the approach. This structure captures the picks-and-shovels opportunity rather than betting on which automaker wins.
Performance dispersion within BATT’s holdings tells the story. While Tesla gained 18% year-to-date, Albemarle surged 78% and Freeport-McMoRan jumped 41%. Battery materials and components dramatically outperformed finished vehicles, validating BATT’s supply chain focus.
Who Benefits From This Exposure
BATT serves investors seeking thematic exposure to electrification without individual stock volatility. The 0.59% expense ratio is reasonable for a specialized strategy, and quarterly rebalancing maintains exposure to evolving battery technology. With $90.8 million in assets under management, the fund remains nimble enough to access smaller opportunities while maintaining adequate liquidity.
The ETF’s return engine relies on two drivers: rising demand for battery materials as EV adoption accelerates, and the commodity supercycle benefiting lithium and copper producers. The fund’s 74% international exposure, particularly to Asian battery manufacturers like CATL and Samsung SDI, captures growth in the world’s largest EV markets.
The Risks Investors Accept
BATT’s concentrated exposure to cyclical commodities introduces significant volatility. Lithium prices fluctuate dramatically based on supply-demand dynamics, and copper pricing responds to global economic conditions. The fund’s 73% portfolio turnover indicates active repositioning, generating potential tax consequences in taxable accounts.
The small asset base presents liquidity concerns during market stress. Heavy exposure to Chinese companies like BYD and CATL introduces geopolitical risk, particularly given ongoing trade tensions. Investors must accept that 2025’s exceptional performance followed years of modest returns, with the fund’s five-year return at just 11%.
Wrong Fit For These Portfolios
Conservative investors seeking stable income should avoid BATT. The 1.03% dividend yield barely registers, and the fund centers on capital appreciation through commodity and technology cycles. Retirees relying on portfolio distributions will find little value here.
Short-term traders may struggle with BATT’s volatility. The battery supply chain responds to long-term infrastructure buildout and policy decisions, not quarterly earnings beats.
Consider This Larger Alternative
The Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) offers similar exposure with meaningfully larger scale. LIT manages $1.53 billion in assets compared to BATT’s $90.8 million, providing superior liquidity and tighter bid-ask spreads. The fund’s 41 holdings include many core positions, led by Rio Tinto at 21% and Albemarle at 7%.
LIT’s primary advantage lies in its established track record since 2010 and substantially larger asset base, reducing liquidity risk during market volatility. The 0.75% expense ratio runs slightly higher than BATT’s 0.59%, but the difference becomes negligible given LIT’s superior trading characteristics and institutional acceptance.
BATT delivers targeted exposure to the battery supply chain with impressive 2025 returns, but investors must accept commodity volatility and geopolitical risk in exchange for participation in the electrification theme.
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