Amplify Lithium & Battery Technology ETF (BATT) 4th Quarter Commentary 2025

Amplify Lithium & Battery Technology ETF (BATT) seeks investment results that correspond generally to the EQM Lithium & Battery Technology Index. BATT is a portfolio of companies generating significant revenue from the development, production and use of lithium battery technology, including: 1) battery storage solutions, 2) battery metals & materials, and 3) electric vehicles (EV). 

BATT returned 8.85% on a net asset value (NAV) compared to its underlying benchmark, the EQM Lithium & Battery Technology Index at 8.98% for the fourth quarter (Q4) 2025. For the year, BATT gained 58.76% on a NAV basis compared to its underlying index, up 59.61%. View Standardized Performance

The performance data quoted represents past performance and does not guarantee future results. Investment return and principal value of an investment will fluctuate so that an investor’s shares, when sold or redeemed, may be worth more or less than the original cost. Current performance may be lower or higher than the performance quoted. For most recent month-end performance, visit AmplifyETFs.com/BATT. Brokerage commissions will reduce returns. NAV is the sum of all its assets less any liabilities, divided by the number of shares outstanding. The closing price is the last price at which the fund traded.

Battery materials continued their second half rally in the fourth quarter of 2025, experiencing a price rally driven by a combination of constrained supply, strong demand from electric vehicles and battery storage, and government policy moves.

Metal Prices Rise Due to Constrained Supply 

Lithium prices saw a boost in pricing due to Chinese leading battery manufacturer Contemporary Amperex Technology (CATL), curtailing operations at one of its largest mines in August.¹ Concern over the removed supply helped push lithium carbonate prices higher during the quarter, increasing from mid-October from US $10,417.37 to US$14,131.44, a 34% increase. Lithium exploration budgets were cut sharply during a low pricing environment, which resulted in production cuts and project delays in China and Australia. The market for cobalt also rebounded strongly in 2025 with prices almost doubling after export restrictions and quotas were implemented by the Democratic Republic of Congo, the world’s largest global producer, shifting the market from over- to undersupply.² Battery-grade manganese sulfate prices also stabilized after an early November dip, with rising production in China tempering further gains.³

Strong Battery Storage, Amid Continued EV Demand

Another trend favoring the rally in battery material stocks has been the rapid growth in battery energy storage systems (BESS), which grew 44% in 2025. Battery storage now accounts for nearly a quarter of all battery demand. The battery storage market is projected to balloon to US $43.4 billion by 2030, growing at a compound annual growth rate (CAGR) of 21.3%.⁴ BESS installations are rapidly expanding driven by renewable integration projects, grid stability needs, and lower battery costs. Global EV sales surged in 2025, but some of that was to get ahead of the U.S. end of EV incentives.⁵  Benchmark Mineral Intelligence (BMI) projects a 15.7% increase in global EV sales with growth in China accelerating to 21%, while slowing in Europe due to emission standard relaxation and in North America due to a slump in U.S. sales.⁶

Government Policy Actions

Chinese government policies, such as a cut in value VAT (value added tax rebates) export rebates for battery products, led companies to front-load exports and focus on short-term demand.⁷ The VAT export rebates will drop to 6% from 9% in April 2026 and eventually be eliminated entirely by Jan. 1, 2027. Similarly, the elimination of the U.S tax credits and subsequent sales surge has had a negative effect on already constrained, near-term supply.  

BATT’s top contributors to performance in Q4 2025 were Albermarle (+74.97%), Freeport McMoRan (+29.96%), and PLS Group (+68.50%).

Shares of U.S. lithium producer Albermarle have rallied on the rebound in lithium prices, improving demand from the electric vehicle and energy storage markets, and better-than-expected earnings results supported by cost-cutting initiatives and positive sentiment for sources of domestic production. Copper producer Freeport McMoRan is hitting new highs due to tight copper supply amid surging demand. The company is beating earnings expectations and there are several analyst upgrades on the stock. PLS Group is an Australian lithium producer focused on hard-rock spodumene which sells lithium concentrate primarily to the electric vehicle and energy storage markets, with customers across Asia and other major battery-manufacturing regions. Its business model is highly leveraged to lithium pricing, production volumes, and operating costs, so the stock has been a big beneficiary of the lithium price stabilization rally.

Key detractors from performance included Lucid Group (-55.56%) and NIO (-33.07%).

U.S. electric vehicle manufacturer Lucid Group has struggled against significant U.S. EV headwinds.  The EV maker is focused on the luxury EV segment and has been particularly hard-hit by the expiration of the EV tax credit.  Chinese EV auto manufacturer NIO along with other China EV names, have sold off as the European Commission is moving to set conditions for Chinese EV makers to swap tariffs for minimum price agreements. 

Visit the BATT fund page for more information, including fact sheets, index methodology, and regulatory documents.