Lithium isn’t your typical source of fuel. Its unique properties and use across many industries has made the lithium exchange traded fund (ETF) appealing to institutional investors in particular.

Institutional investors are raising their eyebrows at lithium, which received its own ETF in August. Frances Denmark for Insitutional Investor reports that large investor interest was so strong that the fund lured in almost $25 million in its first six weeks of trading, the fastest of any Global X ETF. [Minor Metals ETFs Generates Major Interest.]

Chanel De Bruyn for Mining Weekly reports that a South African company sees big things in lithium’s future. As a result, Obtala Resources has acquired a controlling stake in two lithium exploration projects. [Lithium ETF Is In Demand.]

The market for lithium has been growing about 4% to 5% a year, driven largely by electric vehicles and industrial-scale batteries.

  • Global X Lithium (NYSEArca: LIT) holds 20 companies; half are involved in mining and production, the other half are battery makers. It’s up 10.1% in the last month.

Tisha Guerrero contributed to this article.

The opinions and forecasts expressed herein are solely those of Tom Lydon, and may not actually come to pass. Information on this site should not be used or construed as an offer to sell, a solicitation of an offer to buy, or a recommendation for any product.