Solid-State Batteries and ESS Drive Gains... SOL Secondary Battery ETF Tops 3-Month Returns

[Financial News] As the rally in the semiconductor sector, which led the stock market in the first half of the year, lost momentum, secondary battery-related exchange-traded funds (ETFs) climbed into the top ranks for returns. Rising demand for energy storage systems (ESS) and expectations for the commercialization of all-solid-state batteries are converging, with funds investing in next-generation battery companies also posting standout results.
According to the Korea Exchange on the 19th, as of the 16th, Shinhan Asset Management's SOL All-Solid-State Battery & Silicon Anode ETF had returned 22.76% over the past three months, ranking first among domestically listed equity ETFs, excluding leveraged and inverse ETFs.
In the secondary battery sector, ESS has recently emerged as a new growth driver that could offset slowing electric vehicle demand. As the expansion of AI data centers and renewable energy increases demand for power storage, battery companies are also broadening their business areas.
LG Energy Solution recorded preliminary operating profit of 756 billion won for the third quarter of this year, exceeding market expectations. The expansion of its ESS business in North America and the conversion of production facilities are cited as factors behind the improved results.
Expectations for the commercialization of all-solid-state batteries are also supporting investor sentiment. Samsung SDI Co., Ltd. is pursuing technology development and collaboration with customers, with mass production targeted for 2027. The government also plans to pursue about 400 billion won in research and development support for next-generation batteries over five years starting in 2027.
The SOL All-Solid-State Battery & Silicon Anode ETF invests in companies in the sector, including Samsung SDI Co., Ltd. and LG Energy Solution, as well as EcoPro BM, Isu Specialty Chemical, Lotte Energy Materials, and Daejoo Electronic Materials.
Kim Jeong-hyeon, head of Shinhan Asset Management's ETF Business Group, said, “The secondary battery industry is securing a new demand base through ESS, and its growth drivers are diversifying as the commercialization of next-generation technologies such as all-solid-state batteries and silicon anode materials comes into view. Going forward, an earnings recovery through ESS and competitiveness in next-generation technologies will be key factors determining corporate value.”
[email protected] Bae Hangeul Reporter