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Charles Sanders
Charles Sanders

Buy Lithium Etf \/\/FREE\\\\

Investing involves risk, including the possible loss of principal. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Emerging markets involve heightened risks related to the same factors as well as increased volatility and lower trading volume. Narrowly focused investments may be subject to higher volatility. There are additional risks associated with investing in lithium and the lithium mining industry. LIT is non-diversified.

buy lithium etf

According to the Imarc Group, the lithium battery market stood at $45 billion in 2022. Given the high demand for electric vehicles and computer batteries, the market is expected to skyrocket to $93.3 billion by 2028. That's a 13.8% compound annual growth rate for a sector that's just starting to scratch the surface of its market potential.

That scenario represents a quandary for investors, especially as demand for lithium batteries outstrips supply. How do you gauge the short- and long-term value of lithium batteries and what are the best ways to steer money into the sector?

For starters, there is no central market price with lithium. Say what you want about gold, silver or zinc, but there's a set price for each mineral for investors to use as a baseline in making any investment decisions.

Instead of having a regular, standardized market price, investors have to rely on lithium stock price movements or U.S. Securities and Exchange Commission documents on industry manufacturers for trends on sales, pricing and new mining developments.

Additionally, tracking Chinese markets where pricing standards are more pervasive can help draw a bead on lithium pricing trends. Investors can also check in on the Solactive Global Lithium Index, which monitors lithium producers and lithium buyers.

Much of the profit potential from lithium comes from the tight concentration of the product. By and large, a handful of global companies provide the world's lithium. That makes it tougher to avoid following the crowd and plow deep into the weeds to uncover hidden gems in the lithium market.

"Our outlook for the lithium market remains constructive over the medium to long term, though volatility in demand more recently has driven price softness to lithium markets," Bank of America analyst Steven Byrne said in a Jan. 11 research note. "We see current shares as pricing in too low of a lithium market price over the cycle, and thus rate shares 'buy' accordingly."

Albemarle Corp. (ALB). This lithium manufacturer is making red, white and blue waves in early 2023, inking big agreements with the U.S. Department of Energy to build a North Carolina lithium facility and a massive processing plant in Arizona. It's also announced plans to expand its extraction site in Nevada.

Widely known in lithium circles as the biggest worldwide lithium producer, Albemarle is expected to announce 600% or higher adjusted profit growth in the fourth quarter, just as the 2023 earnings season commences.

One fund that does mirror the Solactive Index is the Global X Lithium & Battery Tech ETF (LIT), which invests in a broad array of lithium products and services, such as mining, refining, distribution and sales.

Other lithium-linked funds also offer opportunity to investors. For example, Australia-based Global X Battery Tech & Lithium ETF (ACDC.AX) and Amplify Lithium & Battery Technology ETF (BATT) are amply stocked with companies in the lithium battery and EV markets. (Note: The Australian ETF is thinly traded and therefore less liquid than would be ideal, but has solid assets.)

Like most commodities, however, lithium prices have historically been highly volatile and usually send most risk-averse investors to the sidelines. If you do trade lithium on a futures exchange, you'll be engaging with savvy and experienced market traders, usually investment trading firms, commodity brokers, battery makers, auto manufacturers, hedge funds and other high-level investors.

It's also worth noting most futures market traders are trying to mitigate market risk and aren't attempting to speculate aggressively on stocks, bonds and commodities. That's a good mindset for anyone entering the lithium futures markets.

The future is being powered by lithium, a metal that is the key ingredient for making lightweight, power-dense batteries. Electric vehicles (EVs) depend on lithium batteries and EV sales are seeing massive annual growth, and analysts expect global EV sales to increase 57% in 2022 on a year-over-year basis.

Thanks to the rapidly climbing demand for EV batteries, lithium metal prices have gone through the roof. The price of lithium has quadrupled in the 12 months to September 2022 and would be even higher if the U.S. dollar had not soared in value.

There are a limited number of public companies that mine and refine lithium, plus a host of smaller startup operations that are in the early exploration or development stages of their resources. Forbes Advisor has identified eight lithium stocks that are worth looking at, including both more speculative startup names for well-established mining companies.

The company anticipates that lithium mining and refining operations will begin in Quebec in 2023 and Ghana in 2024, followed by Tennessee in 2025 and North Carolina in 2026. But some of these projections depend on tough local and national permitting reviews.

The list above encompasses all of the main public companies in the lithium space. There is a very limited roster of companies active in mining, processing, and refining lithium. Others not listed are either very small, have witnessed major stock price declines, or are in major financial distress.

Another decision is whether you want to invest in companies focused on the production of lithium itself, like lithium mining stocks, or companies that process lithium or manufacture products, like lithium battery makers and lithium recycling stocks.

A well-diversified portfolio would have a mix of different types of lithium investments. If you need help putting this together, consult with a financial advisor for their advice on which lithium stocks to buy.

Not long ago, in 2015, less than 30 percent of lithium demand was for batteries; the bulk of demand was split between ceramics and glasses (35 percent) and greases, metallurgical powders, polymers, and other industrial uses (35-plus percent). By 2030, batteries are expected to account for 95 percent of lithium demand, and total needs will grow annually by 25 to 26 percent to reach 3.3 million to 3.8 million metric tons LCE depending on the scenarios outlined in Exhibit 2.

Our current base-case analysis sees lithium demand of 3.3 million metric tons or a compounded 25 percent growth rate. Due to the short lead times associated with new lithium production, we only have visibility of 2.7 million metric tons of lithium supply in 2030.

The LIT fund invests in a range of companies and is a top option for investors wanting exposure to the full lithium cycle. Its holdings cover all aspects of lithium, from miners to battery producers and everything in between. Founded in 2010, LIT seeks to track the performance of the Solactive Global Lithium index.

LITs top ten holdings amount to over 50% of the fund. Some of the largest lithium stocks in the world are included in it. Its top two are miner/producer Albemarle and EV manufacturer, Tesla. Other notable companies include BYD, Samsung, and Quimica. Its exposure to the best lithium stocks has seen its price surge by more than 400% since 2020.

Since its inception in 2018 its price has experienced big swings. In its first 18 months of trading it lost 70% in value, however when the lithium bull run started in 2020, it was able to regain its losses. BATT may not be as large as other lithium ETFs however it gives investors a good option to play the lithium battery market, which is only expected to grow in the future.

There are very few ETFs that focus specifically on lithium. However there are many that include lithium companies as major holdings in their portfolios. Eclectic vehicle manufactures are a popular way to benefit from lithium prices as they use the commodity to power their cars.

The investment seeks to provide investment results that correspond generally to the price and yield performance, before fees and expenses, of the Solactive Global Lithium Index. The fund invests at least 80% of its total assets in the securities of the underlying index and in American Depositary Receipts ("ADRs") and Global Depositary Receipts ("GDRs") based on the securities in the underlying index. The underlying index is designed to measure broad-based equity market performance of global companies involved in the lithium industry. The fund is non-diversified.

The Global X Lithium & Battery Tech ETF (NYSEARCA:LIT) is an equity index ETF focusing on lithium companies, a key beneficiary of the burgeoning EV industry. LIT offers investors a simple way to profit from increased EV industry growth, and is a buy.

The green energy transition and the fast acceptance of electric vehicles have boosted the global lithium consumption. The usage is expected to expand fivefold by end of this decade, according to BloombergNEF.

The underlying EQM Lithium & Battery Technology Index seeks to provide exposure to global companies deriving material revenues associated with the development, production and use of lithium battery technology. Tesla (7.94%), Contemporary Amper (6.92%) and BHP Group LTD (5.57%) are the top three stocks of the fund. China (29.46%), United States (20.51%) and Australia (12.10%) hold top three spots when it comes to geographical segmentation. The fund charges 59 bps in fees.

Like hydrogen, lithium is energy dense and can store fuel at times of peak supply for later release. Lithium stocks are involved either in the production of lithium-ion batteries (LIBs), or in the mining and refining of lithium ore. Lithium batteries are mainly used for electric vehicles and distributed energy storage, and are beginning to be adopted for large-scale grid-storage installations and as backup power for data centers. 041b061a72


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