Government Subsidies Should Boost These Critical Mineral ETFs

The government plays a pivotal role in providing the necessary funding to help kick-start and maintain projects for critical minerals mining. This is imperative as the world becomes more heavily reliant on alternative energy sources.

Realizing this, the government recently did just that with an influx of investment capital into two of the largest companies when it comes to lithium and nickel mining.

“Albemarle Corp. and Talon Metals Corp. are getting about $110 million in new US government funding to support the expansion of domestic mining of lithium and nickel, two metals critical to the nation’s energy transition,” Bloomberg reported.

Both lithium and nickel are especially crucial in the development of electric vehicles (EVs). More countries are turning to EVs to reduce emissions. Thus, nickel and lithium demand will rise exponentially in the coming years.

“Albemarle, the world’s largest lithium producer, will get $90 million to help support the miner’s planned reopening of its Kings Mountain, North Carolina lithium mine,” the report added. “Nickel miner Talon Metals will get $20.6 million to advance exploration of its Tamarack Intrusive Complex in Minnesota.”

2 Critical Minerals ETF Opportunities

With the cooperation and funding assistance of the federal government, this can feed into opportunities for exchange traded funds (ETFs) that provide exposure to nickel and lithium miners. Furthermore, two funds from Sprott can provide exposure to the aforementioned mining companies and much more.

Albemarle is one of the top holdings in the Sprott Lithium Miners ETF (LITP). The fund seeks to provide investment results corresponding to the total return performance of the Nasdaq Sprott Lithium Miners Index. The index endeavors to track the performance of a selection of global securities in the lithium industry, including producers, developers, and explorers.

For nickel, ETF investors can opt for the Sprott Nickel Miners ETF (NIKL), which includes exposure to Talon Metals Corp. The fund offers a unique option to investors, given that it’s the only ETF to provide focused exposure to the nickel miners that supply a critical mineral for the batteries that store clean energy and support the electric vehicle revolution.

NIKL seeks to provide investment results that track the total return performance of the Nasdaq Sprott Nickel Miners Index (NSNIKL). The index, in particular, aims to track the performance of a selection of global securities in the nickel industry, including nickel producers, developers, and explorers.

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