As the automotive industry has become increasingly powered by electricity, it’s caused lithium prices to push exponentially higher over the past couple of years.
One way to play the move is via the Global X Lithium & Battery Tech ETF (LIT) as prices continue to rise. LIT seeks to provide investment results that correspond generally to the price and yield performance of the Solactive Global Lithium Index, which is designed to measure the broad-based equity market performance of global companies involved in the lithium industry.
“Lithium-ion batteries have powered consumer electronics and the smartphone revolution for years,” a Canary Media article said. “But now that electric vehicles are starting to take significant market share from gas-powered cars, battery demand has shifted into even higher gear.”
“As this chart shows, prices of lithium carbonate, the commodity that puts the lithium in lithium-ion batteries, have shot to the moon this year,” the article added further. “It’s impossible to look at that trajectory without wondering what will become of the movement to shift transportation and a growing portion of the electrical grid to run on batteries.”
An EV Option to Capture the Trend
More growth in electric vehicles also opens up opportunity for the Global X Autonomous & Electric Vehicles ETF (DRIV). DRIV seeks to invest in companies involved in the development of autonomous vehicle technology, electric vehicles (“EVs”), and EV components and materials, including companies involved in the development of autonomous vehicle software and hardware, as well as companies that produce EVs, EV components such as lithium batteries, and critical EV materials such as lithium and cobalt.
DRIV seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Autonomous & Electric Vehicles Index. The fund offers:
- High growth potential: While global EV registrations increased by more than 40% in 2020, EVs were still less than 5% of new cars sold, highlighting substantial room for further adoption.
- Advancing clean technologies: EVs produce zero direct emissions, meaning that broader adoption could result in reduced greenhouse gas emissions and improved urban air quality. Further advances in autonomous driving could also enhance roadway safety.
- Unconstrained approach: This theme is bigger than any single company. DRIV invests accordingly, with global exposure across multiple sectors and industries.
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