Play the Emergence of Lithium With These ETFs

Elon Musk's tagged lithium as "the new oil" last summer. The very phrase emphasized its importance of lithium in the global supply chain and the burgeoning electric vehicle market. As an essential component of rechargeable batteries found in everyday devices, lithium's demand continues to soar, making it a promising investment opportunity.

Due to high-density energy storage, the metal is used in rechargeable batteries for electric cars, smartphones, laptops, and other electronic devices.EVs and battery storage have already displaced consumer electronics to become the largest consumer of lithium and are set to take over from stainless steel as the largest end user of nickel by 2040, per IEA.

Overview of the Lithium Market

China, Australia and Chile are the primary lithium producers, with China holding an 80% market share in lithium-ion batteries. Recognizing the need for battery-grade lithium, Elon Musk stressed the importance of increased production to sustain the growth of electric vehicles.