In case you hadn’t noticed, the EV battery tech ETFs have been on fire lately. Take a look at the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) chart – it has gone parabolic over recent weeks. This is also evident in the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT).
In the age of thematic ETFs, one of the most important questions when a stock is uplisted off the OTC is about whether it might be ripe for inclusion in a popular ETF. We would raise this question now for KULR Technology Group Inc (NYSEAMERICAN:KULR).
KULR was recently uplisted onto the NYSE American exchange, which may qualify it for inclusion in several ETFs, such as those listed above, that have recently become extremely popular.
Both LIT and BATT focus on the EV space through the lens of lithium battery technology and its related conceptual domain.
KULR could be a fitting addition to one or both of these ETFs, among others, given the company’s recent strides to place itself at the heart of the narrative in the EV Battery space, along with companies like Albemarle Corporation (NYSE:ALB), Plug Power Inc (NASDAQ:PLUG), FuelCell Energy Inc (NASDAQ:FCEL), Tesla Inc (NASDAQ:TSLA), Nio Inc – ADR (NYSE:NIO), and Xpeng Inc – ADR (NYSE:XPEV), all of which are already in thematic ETFs related to the EV battery theme.
The Back Story on KULR
KULR Technology Group Inc (NYSEAMERICAN:KULR) is particularly interesting given its stellar background story and its IP partnership with NASA.
For a little background, KULR develops, manufactures and licenses next-generation carbon fiber thermal management technologies for batteries and electronic systems.
One might see it as something like a hedge for Lithium-Ion battery technology by removing downside risk for EV manufacturers through beneficially shifting the probability of negative battery events. That makes it a very interesting player in the space because it has a universally viable niche with almost no real competition.
The company offers lithium-ion battery thermal runaway shields; fiber thermal interface materials; phase change material heatsinks; HYDRA TRS battery storage bags; internal short circuit device; and CRUX cathodes.
KULR’s technologies are used in electric vehicles and autonomous driving systems, artificial intelligence and cloud computing, and energy storage and 5G communication technologies.
To add further strong legitimacy, the co-founder of a Warren Buffet backed company in the EV space, BYD Company ADR (OTCMKTS:BYDDY), currently serves on KULR’s official Board of Advisors.
The company is rooted in a 30-year history tied to carbon fiber thermal energy management technology for aerospace and defense applications. Its technology is trusted by NASA, with KULR parts on the Mars Rover 2020 Perseverance and the International Space Station.
Not many players in the EV battery technology space can boast on that level.
According to KULR CEO, Michael Mo, the company’s mission now is to take these space proven technologies to make the world of lithium batteries and electronics cooler, lighter, and safer.
All of the above may point to a ripening likelihood that KULR starts to run with multiple red-hot thematic herds, including EV stocks, Lithium stocks, and Battery stocks, which are really three different market groups, but all clearly tied together as part of a larger constellation of facets of the same emerging next-gen technology theme.
KULR Technology Group Inc (NYSEAMERICAN:KULR) executives rang the bell on the NYSE last week to mark the event of the stock stepping onto the major league playing field.
“It’s truly an honor to mark the beginning of our next chapter as a public company by ringing the NYSE closing bell,” said Mo. “We couldn’t be more excited about our prospects serving the world of e-mobility and energy storage at a time when the world is entering into an electrification revolution. We will continue to innovate with our space-proven technologies to make batteries and electronics cooler, lighter and safer”
Given the extreme retail investor interest in this particular constellation of investing themes, one can easily make the case that KULR could see interest and multiple expansion due to its membership in the club attached to that thematic universe.
After all, given the company’s pedigree on the IP side and its unique and potentially disruptive angle for EV battery technology, it’s hardly a stretch to include it as a core play in this genre.
One could even make a case that Cathy Wood’s Ark ETF universe might find a home for KULR in due time.
Conclusion: KULR just stepped onto the major league playing field as a bona fide player in one of the most popular speculative themes in the market right now – EV battery technology – during a period defined by surging retail investor participation for perhaps the first time since the late 1990’s.
This could translate into interest from individuals, but also from major institutional forces including thematic ETFs.