This considerable gap between demand for cell components and local supply signals growth opportunities in the battery component market. The global revenue pool of the core cell components is expected to continue growing by around 17 percent a year through 2030 (Exhibit 2).
Investors looking for more concentrated exposure to lithium producers can consider this ETF, traded on the Toronto Stock Exchange. It invests in companies mining and producing lithium, lithium compounds and lithium-related components.
According to a recent Transport & Environment (T&E) study, 100% of European demand for lithium-ion batteries will be produced in Europe by 2027, following an increase of several hundred GWh in production capacity there.
It invests in companies mining and producing lithium, lithium compounds and lithium-related components. The fund's biggest holding is Arcadium, at 17% of assets as of Nov. 8, followed by Pilbara Minerals Ltd. (OTC: PILBF), at 9.3% of assets.
The sheer magnitude of Chinese business ventures locking up critical minerals, particularly lithium supply, globally places U.S. lithium battery manufacturers at a disadvantage, especially as U.S.-based companies are held to more restrictive environmental standards.
This ETF, like its competitor Amplify Lithium & Battery Technology ETF (BATT), offers further diversification by including battery and EV exposure along with pure-play lithium stocks. LIT tracks the Solactive Global Lithium Index and includes Albermarle and EV players like Tesla Inc. (TSLA) and BYD Co. Ltd. (OTC: BYDDY).