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[ad_1] Due partially to the latest rally by Tesla (NASDAQ: TSLA), the Global X Lithium & Battery Tech ETF (NYSEArca: LIT) is getting a lift. Up virtually 9% over the previous week, LIT is proving to be one of many best-performing thematic funds this yr.LIT tracks the Solactive International Lithium Index. One of many oldest thematic ETFs, LIT is designed to supply publicity to “the full lithium cycle, from mining and refining the metal, through battery production,” according to Global X.“Recent comments from China’s minister for industry and information technology that subsidies for electric car purchases would not be cut further this summer, sparking expectations of a rebound in electric car sales this year after sales of electric cars and hybrids fell 4% last year to 1.2M,” notes Seeking Alpha.Tesla makes for an apparent catalyst for lithium demand and for LIT itself, however there’s extra to the story and that’s excellent news for buyers contemplating the lithium ETF.“Lithium producers are rallying this week, as buyers guess on a rebound in electrical automobile gross sales in China after authorities assurances its subsidies for consumers wouldn't be lower additional,” experiences Searching for Alpha, citing the Monetary Occasions.China looms massive within the lithium market. Lithium costs will weigh closely on China’s demand for the commodity. At present, market analysts are cautious of lessening demand so provide will play a key function in what lithium costs do transferring ahead.Leap For LITWith the recognition of electrical autos spurring demand for car choices from carmakers like Tesla, the lithium business has taken a brand new flip. Extra makes use of will likely be discovered for lithium because the transfer to vitality dependence from fossil fuels continues to extend demand for effectivity. Nonetheless, lithium miners have confronted some struggles.At present, electrical autos characterize a small share of latest vehicles bought around the globe and vehicles on the highway, however that share is predicted to extend in a giant method over the following a number of years.International automotive business observers consider electrical autos will attain comparable worth factors to conventional inside combustion engine autos someday within the subsequent a number of years, making it extra compelling for drivers to make the swap to electrical autos.EV adoptions are more likely to speed up because of EVs turning into extra economical than gas-powered vehicles and because of pro-climate regulatory modifications pushing to ban gas-powered vehicles.For extra on thematic ETFs, please go to our Thematic Investing Channel.The opinions and forecasts expressed herein are solely these of Tom Lydon, and should not really come to go. Data on this website shouldn't be used or construed as a proposal to promote, a solicitation of a proposal to purchase, or a suggestion for any product. [ad_2] Source link