LIT ETF

Cleaner energy investments, particularly in EVs powered by lithium-ion batteries, are gaining traction, making the lithium industry important to know for investors. Global X Lithium & Battery Tech ETF is down 12% YTD and over 53% since 2021, due to falling lithium demand and prices. Lithium market volatility and oversupply, coupled with potential policy changes, suggest holding off on investments until demand stabilizes.

I am bullish on the LIT Global X Lithium & Battery Tech ETF and have initiated a long position. Despite potential market corrections, lithium's short-term tailwinds make it a compelling investment. Consensus is shifting towards a structural recovery for lithium, reinforcing my Buy rating for LIT.

Guillermo Trias, CEO of Tidal Financial, radiates energy and a seemingly ridiculous level of enthusiasm for everything he does — especially regarding ETFs. It might even be fair to label him the Energizer Bunny of the ETF world.

CATL and Arcadium recently announced plans to take lithium mines offline. China's deteriorating economic prospects risk negatively impacting lithium consumption. A global lithium supply glut shows no signs of abating in the months ahead in my view.

The Global X Lithium & Battery Tech ETF (NYSEARCA: LIT ) shed more than 10% of its value in the past month, naturally leading to a drawdown in battery stocks. Many might argue that the recent capitulation of battery stocks is a sign of things to come.

Opportunity Arises Following the Crash

The VanEck Rare Earth/Strategic Metals ETF has seen a 38.7% decrease in value since July 2023, primarily due to a bearish trend. The REMX ETF is heavily focused on lithium rather than rare earth metals, essentially making it more of a lithium ETF. With the drop in lithium prices, there could be a promising opportunity for REMX if it falls below $55 per share.

The transformation from internal combustion engine to battery electric vehicles is inevitable. BEV demand has slowed on price resistance, charging, and maintenance infrastructure. Part of the learning curve for new technologies.

A recovery of the metal's market isn't yet in sight, but one will have to come eventually.