ExxonMobil is pivoting to the electric vehicle market with a focus on lithium mining. This highlights the growth potential of this sector, opening opportunities in ETFs like the Sprott Lithium Miners ETF (LITP).
There has been a global transition to alternative energy sources. So it’s no surprise that large oil players are making moves toward the critical minerals space. Lithium is an essential component for developing batteries for use in EVs. ExxonMobil is positioning itself to be a global leader in this market.
“Lithium is essential to the energy transition, and ExxonMobil has a leading role to play in paving the way for electrification,” said Dan Ammann, president of ExxonMobil Low Carbon Solutions, in a company release. “This landmark project applies decades of ExxonMobil expertise to unlock vast supplies of North American lithium with far fewer environmental impacts than traditional mining operations.”
The release said ExxonMobil procured vast acreage of land in the southern region of Arkansas. The element is abundant in supply there. This will also help the U.S. become self-reliant on critical minerals like lithium. It will also create revenue sources as other countries demand more of this element for their own respective EV markets.
“South Arkansas is our state’s all-around energy capital, producing oil, natural gas, and now thanks to investments like ExxonMobil’s and their combination of skills and scale, lithium,” said Arkansas Governor Sarah Huckabee Sanders. “My administration supports an all-of-the-above energy strategy that guarantees good, high-paying jobs for Arkansans. Wnd we’ll continue to cut taxes and slash red tape to make that happen.”
Capitalize on Lithium Growth
ExxonMobil’s foray into the this mining market underscores incredible growth opportunities. As such, LITP offers investors exposure to lithium mining in the convenience of one ETF as opposed to various single stock holdings.
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 industry, which includes producers, developers, and explorers.
As of October 31, the fund features 48 holdings, offering investors broad exposure to the industry’s ancillary services. Top holdings, which comprise over 30% of the fund’s assets, include Sociedad Quimica y Minera de Chile SA, Pilbara Minerals, and Albemarle Corp.
For more news, information, and analysis, visit the Gold/Silver/Critical Materials Channel.