The storming issues regarding green energy and energy conservation have aroused a sizable wave in the NEV industry of various countries. KGI has thus joined hands with Wellington Management, one of the largest active asset management companies in the world, on releasing the KGI Future Mobility Fund, which was successfully declared on January 18th, and is expected to commence fundraising starting from March 1st.
Feng Shao-rong, Manager of the KGI Future Mobility Fund, mentioned that the Fifth Avenue of New York was mostly filled with carriages during the early 1900s before becoming congested with automobiles shortly after in 1913. The speed of evolution in transportation vehicles will double under the industrialization, technological advancement, and eco-friendly tendency of the global market.
According Feng, the acceleration on promoting NEV targets encouraged by the green issues of different countries will result in an increase in the overall percentage of NEVs sales to 50% in the US and around 50-70% in Japan by 2030. In addition, the EU will be looking to release a total of 30 million new NEVs, and China is expected to attain 100% electrification among new vehicles by 2035. The emergence of the new energy industry is not to be sniffed at.
Feng commented that future investments for the mobility realm will cover EVs, self-driving vehicles, and new future mobility themes, such as surpersonic airliners, flying cars, high-speed tunnels, smart grids, and even space travel. As EVs gradually ascend in market share, they are expected to occupy 70% of new global vehicle sales in 2040 under a growth of nearly 40 times, which will also stimulate increasing demand for batteries and energy storage.
Feng explained that it is still uncertain who will become the leader in EVs in the future, though a sizable expansion in the market demand for batteries is now an irreversible trend. The global EV battery market scale is estimated to grow from US$21 billion in 2020 to US$523 billion by 2040, which is an increase of nearly 25 fold. The demand for various renewable energy, equipment for charging infrastructures, and automotive electronic software will also unfold on a significant scale in the future, and Feng is optimistic towards the enormous potential growth dynamics in industry and supply chains when collocated with policies and subsidization as well as multiple infrastructures of various countries.
The KGI Future Mobility Fund will be issued in NTD, USD, RMB, and ZAR in order to conform to the needs of investors holding various currencies, as well as offer two options that are A accumulation and NA post-accumulation, which provide a flexible room for investors in fund applications. KGI recommends investors to take this opportunity to incorporate relevant future mobility topics in their asset allocations so as to aboard the evolution of investment.
(Cover photo source: shutterstock)