Should you invest in a lithium battery ETF?

An ETF focused on lithium battery tech will provide diversification across the industry, from lithium mining companies to battery manufacturers to EV automakers that integrate the tech into a vehicle. Since lithium batteries used in larger applications are still undergoing rapid development, there are few choices for ETF pure plays in the industry.

Who owns a lithium fund?

Half the funds are allocated to lithium mining companies, with top lithium producer Albemarle (ALB 0.16%) being the largest holding. A major collection of battery manufacturers based in China and South Korea also dominates the portfolio (Yunnan Energy, Samsung, Panasonic, and LG Chem, to name a few).

Are lithium-ion batteries gaining ground in the automotive industry?

Lithium-ion batteries are already in widespread use, thanks to smartphones and tablets. Now the technology is gaining ground in the automotive industry. Even as lithium prices have fallen dramatically in the last two years, electric vehicles (EVs) are booming as automakers apply batteries to their vehicle lineups.

What's going on with a lithium project in 2024?

It's amidst a $1.6 billion capital expenditure plan for 2024, which includes the acquisition of a lithium project via a joint venture in Australia, the acquisition of a plant in China, lithium carbonate and lithium hydroxide capacity expansions in Chile, and nitrates and iodine capacity expansions. It's not all green lights, however.

What is a battery supply chain fund?

This fund tracks the performance of firms involved in the battery supply chain, from mining of metals for battery making to battery manufacturing. The companies followed specialize in providing electro-chemical storage technology.

What happened to lithium demand in 2022?

During 2022, the demand for lithium exceeded its supply, a trend that continued from 2021. Interestingly, even with a 180% production increase since 2017, there remained a gap. In 2022, roughly 60% of lithium demand, 30% of cobalt demand, and 10% of nickel demand were attributed to electric vehicle batteries.