One theme that has experienced ebbs and flows over the years is electric vehicle investing.
Investing in electric vehicle (EV) related shares on the ASX began gaining traction in the late 2010s. This was driven largely by global momentum from companies like Tesla Inc (NASDAQ: TSLA). It was also influenced by increasing demand for battery minerals such as lithium.
By the early 2020s, ASX investors were heavily backing lithium producers and battery supply chain companies. This turned EV exposure into a prominent growth theme.
Recent oil price surges have once again reignited debate over the growth potential of lithium producers and EV companies.
A new report from Global X suggests the moment has arrived for the electric economy – spanning electric vehicles (EVs), lithium, clean energy, and energy storage systems (ESS).
EVs and battery technology appear to have finally crossed the threshold of no return, with the next phase of growth set to unfold at a materially faster pace than in recent years.
Image source: Getty Images
The perfect storm
According to Global X, the arrival of an energy crisis in the form of the Iran War may prove to be the catalyst that re-ignites the fire under EV adoption.
The report said that cost parity has been the key inflection point for EV adoption.
The logic is straightforward: as EVs become just as cheap to buy and own as petrol vehicles, their superior technology and day-to-day performance should be enough to drive widespread switching.
However, we believe this is most likely not sufficient. What this framework overlooks is the stickiness of ingrained consumer behaviour, including a natural scepticism toward new technologies. For example, according to our analysis, the average all-in cost of an EV in 2025 was already approximately $875 cheaper than that of a comparable petrol vehicle over a typical 10-year ownership period.
Global X said that as of April 2026, the first signs of the EV re-acceleration are already appearing in sales figures and export numbers.
Australia saw EVs take its highest share of sales ever in March, and in a more global metric, Chinese EV exports for March jumped more than 170% year-over-year.
EV adoption accelerating
Global X argues that the world is moving along a path of deglobalisation.
As a result, commodities, including energy, are becoming more politicised and increasingly vulnerable to disruption.
The Iran War has merely exposed these vulnerabilities and may act as a catalyst for countries to address and better manage risks in the future.
For most nation states without reliable domestic access to energy resources, the rational response is to accelerate investment in renewable infrastructure such as wind and solar. Central to this buildout are Energy Storage Systems (ESS), which not only store excess generation but also smooth out the inherent intermittency of renewable supply.
Global X Battery Tech & Lithium ETF (ASX: ACDC)
These catalysts are contributing to the outperformance of the Global X Battery Tech and Lithium ETF.
In 2026 alone, the fund has rocketed nearly 20% higher.
Over the last 12 months, it is up 120%.
The fund offers investors exposure to global companies developing electro-chemical storage technology and mining companies producing battery-grade lithium.
Global X believes this alignment of consumer economics and national strategy is defining a new day for EV investment. While the pace of change may not be linear, the direction of travel appears increasingly set.
The electric economy is no longer reliant on favourable conditions to grow. It is being pulled forward by necessity.
