In the late 2010s, there was a “gold rush” for lithium producing and exploration equities. Predictably, that bubble was burst for some of the smaller players before we moved into this new decade. That little episode should not turn investors away from the lithium and electric vehicle (EV) space right now.
MarketsAndMarkets projected that the global electric vehicle market would deliver a compound annual growth rate (CAGR) of 21% from 2022 through to 2030. Meanwhile, Spherical Insights recently valued the global lithium-ion battery market at US$65.9 billion in 2021. This market researcher projected that the market would deliver a CAGR of 19% from 2022 to 2030 until it rose to a US$273 billion valuation.
Readers who want to get in on the lithium-ion battery market should look to the Global X Lithium & Battery Tech ETF (NYSE:LIT). This exchange-traded fund seeks to provide investment results that correspond generally to the price and yield performance, Invest in the Rise of Electric Vehicles with This ETF before fees and expenses, of the Solactive Global Lithium Index. Shares of this ETF have climbed 3.6% month-over-month as of close on May 30. The ETF is up 6.1% so far in 2023.
The top holding in this fund is Albemarle Corp, a North Carolina-based American specialty chemicals manufacturing company that is the largest provide of lithium for electric vehicle batteries in the world. Other top holdings include Panasonic Holdings, TDK Corp, and Tesla. This ETF still has explosive potential in the middle of 2023.
