The Global X Lithium ETF (NYSEArca: LIT) is up nearly 10% year-to-date and after some recent consolidation on its chart, the lithium exchange traded fund could be ready to deliver more upside.
LIT, the only equity-based ETF on the market dedicated to lithium miners and producers, tracks a diversified group of companies involved in the “full lithium cycle,” from mining and refining the metal through battery production. Lithium is utilized in batteries for their high charge density, or longer lasting life.
“Looking at this chart, you can see that LIT bottomed back in November. Then it broke out and went on a 20% tear to the upside. It calmed down and cooled its jets from January through March. And now, it’s taking off again,”according to ETF Daily News.
Lithium is “An essential component in the advancement of alternative energy is the ability to efficiently store power,” according to Global X. ” Renewable energy sources such as solar and wind require generated electricity to be stored because they provide power inconsistently throughout the day. Overhauling the transportation industry to run on electricity, rather than gasoline, requires enough energy storage to power vehicles for hundreds of miles. To meet these energy storage demands, advanced batteries are made from Lithium.”