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.

Related: Rising Electric Car Demand Powers Lithium ETF

With the economy recovery maturing, the materials sector, which is closely tied to the prices of raw materials, have traditionally done well as inflation rises and late-cycle economic expansions help support demand. With more lithium battery factories coming online, production of the metal could triple over the next five years.

“Over the long term, lithium producers should be able to meet heightened demand as they ramp up production. According to the US Geological Survey, world reserves of lithium top 47 million tons, while consumption of lithium was just 37,800 tons in 2016, implying plenty of availability of the natural resource,” according to Global X.

For more information on the materials space, visit our basic materials category.