For investors looking to capitalize on the jump in electric vehicle ownership, an exchange-traded fund that tracks battery and lithium companies fits the bill, according to Ned Davis Research. The firm favors the Global X Lithium & Battery Tech ETF, which offers broad exposure to companies involved in lithium mining and processing, as well as companies that make batteries for car companies. Ned Davis said rising gas prices make owning an electric vehicle more attractive, which should drive higher sales in the future. The national average for a gallon of regular gasoline hit a record high of $4.60 last week, up from $3,041 a year ago. “A key assumption for the EV vs. ICE analysis is that gasoline prices remain at this elevated level over a five-year period, and we have reason to believe prices could remain elevated for some time,” the firm wrote. in a note to customers. . Electric vehicle sales more than doubled during 2021 to 6.6 million vehicles, according to data from the International Energy Agency. Electric vehicles now account for nearly 9% of global car sales, which is nearly triple the 2019 share. Ned Davis said lithium and batteries are the company’s preferred way to gain exposure to the topic of electric vehicles. electric vehicles as they focus on the most important component of an EV. “While we don’t know which region or automaker will win the most, we do know that all electric vehicles require a battery,” said analysts at the firm led by Pat Tschosik. While the bottom is higher for May, it is still down more than 10% for 2022 amid a sell-off in the market. Tschosik said the ETF recently experienced its worst five-day outflow since November, leading him to believe capitulation could be here. The fund’s main holdings are Albemarle, SQM, BYD, Yunnan Energy and Eve Energy. Lithium prices have more than doubled this year after surging in 2021, but companies mining the metal have not seen the same kind of outperformance. But that could be changing. Albemarle and Livent are among the companies that said they are renegotiating contracts, which will give them more exposure to high spot prices. The former raised its guidance late Monday, saying it now expects 2022 net sales to total between $5.8 billion and $6.2 billion. This is the second time in a month that the company has raised its forecast. In early May, Albemarle said he expected sales to be between $5.2 billion and $5.6 billion, up from previous guidance of $4.2 billion to $4.5 billion. Of course, lithium prices that are too high could affect the demand for electric vehicles at some point. Ultimately, automakers will pass these higher costs on to consumers, which could affect the number of vehicles sold.