The growth prospects of lithium mining is apparent in one Chinese miner’s big bet in Argentina. Tibet Summit Resources will invest $1.7 billion in two lithium projects in Latin America’s third largest economy.
According to Mining.com, said projects “in the Arizaro and Diablillos salt flats in Salta province are expected to produce 50,000-100,000 tonnes of lithium, the ministry noted in a statement, without elaborating or saying when they would come online.” The investment should be a boon for Argentina’s economy, particularly when it comes to job creation.
In response, Argentina is more than willing to offer its lithium-rich resources. An Investing.com article listed Argentina as the fourth largest lithium producer in the world.
“We want a mining industry that takes advantage of our resources and generates added value and employment,” said Economy Minister Sergio Massa in the statement.
It’s a move that capitalizes on the growing demand for electric vehicles (EVs) as countries look to reduce their carbon emissions. Lithium is an essential element in order to create rechargeable batteries to power EVs.
China, in particular, is looking to expand its EV manufacturing by capturing more of the global EV market share. Taking lithium mining’s growth prospects into account, Tibet Resources’ investment in Argentina is a sign of the times.
Of course, this paves the way for investors to capitalize on lithium-focused exchange traded funds (ETFs). In particular, those that focus on mining.
Capture Lithium Mining Growth
Given Tibet Resources’ big bet on lithium mining, it speaks to the opportunities in the space, especially given the world’s transition to critical minerals like lithium. As mentioned, it’s an ideal opportunity for investors looking to add the growth factor to their portfolios.
One way is via the Sprott Lithium Miners ETF (LITP). Speaking to the fund’s diversification features is its holding across a variety of countries, including Australia, Canada, and the United States.
LITP seeks to provide investment results corresponding to the total return performance of the Nasdaq Sprott Lithium Miners Index. That index is designed to track the performance of a selection of global securities in the lithium industry. This includes producers, developers, and explorers. The fund features 44 holdings as of May 23, offering investors broad exposure to the industry’s ancillary services.
For more news, information, and analysis, visit the Gold/Silver/Critical Materials Channel.