Bullish on lithium and batteries? 4 ASX shares this fund manager loves

Here's Regal Investment Fund's take on the renewables sector.

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ASX shares in the renewables and green metals space have been big winners this year as investors flock into the theme of environmental, social and governance (or ESG) investing.

As reported by Livewire, chief investment officer and founder of Regal Investment Fund (ASX: RF1) Phil King spoke at the company's investor briefing last week. At the event, King highlighted two major themes he reckons are worthy of backing: a mining bull market and the rising interest in green metals, especially batteries.

King and the team at Regal pointed to four ASX shares playing to these themes that the company currently holds. These include S&P/ASX 200 Index (ASX: XJO) constituents through to newly listed initial public offerings (IPOs).

Envirosuite investor holds a tech device while sitting on a ledge looking out to trees through a window

Image source: Getty Images

4 ASX shares for renewables exposure

1. Chalice Mining Ltd (ASX: CHN)

The Chalice share price has boomed an extraordinary 2,500% since the company began its extensive drilling program at its Julimar Nickel-Copper-Platinum Group Element (PGE) project in Western Australia.

Chalice believes it's positioned to emerge as a "world-class, strategic deposit of critical, 'green metals' in a world-class jurisdiction" that is "highly leveraged to battery and hydrogen technology adoption", according to its Diggers and Dealers Mining Forum 2021 presentation.

The team at Regal share the same view, saying:

… we believe [Chalice] has discovered a new tier-one green metals province, remarkably, only 60 kilometres east of Perth, which has the potential to become the most significant polymetallic discovery in Australia.

2. Novonix Ltd (ASX: NVX)

Up until last week, the Novonix share price had managed to boom 450% year to date.

Regal described the company as one that is "engaged in a diverse range of battery-related technologies and is a global leader in producing high-quality synthetic graphite for battery anodes".

3. PPK Group Limited (ASX: PPK)

The PPK share price has fallen off a cliff in recent weeks, losing more than a third in value since mid-September.

The trending PPK share price came to a grinding halt when the company announced a joint venture to manufacture anti-viral and anti-bacterial face masks on 23 September.

Whilst PPK's diversified business is spread across batteries, ballistic armour, dental products and mining technology, Regal pointed out that:

[PPK] has made significant progress this year in research and development. PPK's subsidiary Li-S Energy … is developing lithium-sulphur batteries … a competing technology to the well accepted lithium-ion batteries.

4. Li-S Energy Ltd (ASX: LIS)

Li-S Energy made its ASX debut on 28 September, surging as high as $3.05 on open compared to its listing price of just 85 cents.

The company is a spin-off of PPK Group, attempting to disrupt the battery market with a more efficient, safer, faster-charging and environmentally friendly lithium-sulphur battery.

Motley Fool contributor Kerry Sun has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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