The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT) was a story exchange traded fund in 2017, surging more than 59% on its way to one of the best performances by any non-leveraged ETF. It is possible a sequel is in store for the lithium ETF in 2018.
As the U.S. sees a growing shift toward larger batteries on increasing electric vehicle demand, the industry will have to raise production from 68 gigawatt-hour of lithium-ion cells last year to 1,165 GWh over the next decade, brokerage Berenberg projected.
“Emerging technologies can make for volatile investments, and Tesla’s up-and-down 2017 illustrates that. Overall, analysts expect continued expansion for lithium power. Demand for lithium started rising with the growth of portable electronics,” reports Investor’s Business Daily.
As more countries plan for electric vehicles to diminish their reliance on gasoline-powered vehicles, bullish investors are betting that the world will experience one of its biggest shifts in commodities demand since the 19th century when petroleum replaced whale oil as lighting fuel.
Sales of electric and hybrid vehicles increased 50% in the first 10 months of 2017, compared to the same period year-over-year. Electric and hybrid vehicle sales are also projected to rise to 31.5 million units in 2013, compared to 1.2 million units in 2017, according to the Jefferies Group.