Lithium is well known for manufacturing rechargeable batteries and other industrial uses. This is mainly because of its excessive low density preferred by electric cars, Smartphones, digital cameras, and laptop production. For this reason, the valuable metal has steadily become popular in the market.
As trends and environmental standards embrace energy efficiency, there is a great need for safer and cost-effective products. The mounting demand undeniably instigates the use of lithium products because of their higher voltage capacity, energy density, and reduced self-discharge levels.
In addition, there is the explosion of lithium stocks that engage organizations involved in the processing and mining of the metal. While most people speculate whether the industry is productive enough, investing in the best lithium ETF is not a bad idea at all. This topic will take you through an imperative process on how you can make a kill with Lithium investing.
How to Invest in Lithium
It is the dream of every investor to make an extra coin out of it. Enthusiastic individuals can consider Exchange Traded Funds (ETF) and lithium stocks. An EFT is a security sold on a stock exchange that monitors commodity, index, and sector. Often, they contain several investments like bonds, stocks, and commodities. If you have to choose between stocks and EFTs, it is worth noting that the former has several concentrated risks.
On the other hand, EFTs offers diversification and broad exposure. Nonetheless, for experienced lithium investors, buying lithium stocks act as a valuable alternative venture. All in all, experts advocate that individuals can get better results if they invest in focused ETFs or trade with startup firms using low-cost lithium. Another ideal option is to invest in reputable lithium manufacturers who run low-cost operations.
Although ETFs behave similarly with stock investments, they gain their value from concentrating in several related companies. In other words, it translates into investing in numerous slices of Lithium through ETF instead of settling with a particular company with stocks.
However, ETFs can be more susceptible to market downturns popular with batteries and lithium companies. As a result, they may not offer the broad diversification or cynical properties expected. Here are some of the top best Lithium ETFs you should consider.
The Global X Lithium & Battery Tech ETF
This ETF invests in a variety of organizations making lithium batteries or producing Lithium. In the process, they provide much-needed exposure to battery and lithium markets. Most of them have a market value of approximately 50 dollars per share, with the most investment in Asian companies. At the moment, Albemarle stands out among the fund’s best holdings.
Other prominent brands include Tesla, LG Chem, BYD, Samsung SDI, Ganfeng Lithium, Sumwoda Electronic, etc. This option is suitable for individuals eager to achieve intensive exposure in the lithium world compared to other ETFs.
ETFs Battery Tech and Lithium ACDC
In contrast with the previous option, investment here involves companies creating batteries and the mining firms that manufacture commodities needed for the process. Over 50% of the stock in this range is in Asia, while the rest splits between the US and Europe.
Some of the best holdings include Tesla, LG Chem, Mineral Resources, BYD, Galaxy Resources, Pilbara Minerals, Renault, and Solar Edge Technologies.
Top Best Lithium Associated Company
Before investing in Lithium, it is crucial to pinpoint prominent lithium companies. Mainly, this involved brands that mine, produce and refine the commodity.
1. Albemarle Corp
Thanks to the company’s capacity to scale, Albemarle is the most favored lithium partner globally. Situated in Charlotte, North Carolina, the geographical location is perfect for the company’s access to the worldwide lithium market. Also, the company operates on a minimal operating resource which makes it stand out amongst others.
2. Galaxy Resources
The Australian-based company produces Lithium from a hard-rock venture known as Mount Cattlin. Currently, the famous brand has two other upcoming projects in Chile (Sal De Vida Catamarca brine) and Canada (James Bay Hard Rock).
3. Livent Corp
Compared to other lithium companies, Livent is more established and likely to earn you some good money. A 2020 report about a long-term coalition with Tesla prompted a 50% growth by the end of the year. As Livent Corp continues to supply Tesla with higher quantities of Lithium, the future looks promising for interested investors.
4. Lithium Americas
Currently, the Canadian-based firm has two developing lithium projects in the US (Thacker Pass hard-rock) and Argentina (Cauchari-Olaroz brine). The firm is listed in New York and Toronto, with the US project taking pride in its capacity of holding the most considerable quantity of Lithium in America.
5. Pilbara Minerals
The Australian-based company also runs the Pilgangoora project, famous for tantalum and Lithium. The hard-rock project hopes to produce over one million pounds of tantalum and 1.2 million tonnes of spodumene if things go as planned.
A worthwhile investment should fit in your long-term strategies and should not affect your risk lenience. More participants consider the investment worth a trial with a predictable demand for electric vehicles and other lithium uses. Yet, there is much need for extensive analysis for individuals to understand Lithium’s market value and how to trade wisely.