, already a fast-growing exchange traded fund (
) provider, has made its biggest impression on the market yet by
. It's the first product that gives investors a way to get exposure
to this rare but increasingly popular metal.
Global X Lithium (NYSEArca: 10 New ETFs Worth a Look.]
Del Ama points out that lithium is being used in just about
everything that powers our lives these days: cell phones, laptops,
digital cameras, hybrid and electric vehicles. Lithium is also a
major component in
, storing up power produced by wind and the sun for later use.
Battery use is a large part of the lithium market, at 25%. Del
Ama says this number is expected to grow to 40% of the market over
the next 10 years. "That's a tremendous amount of growth. There's a
lot of lithium around the world that hasn't even been exploited,"
del Ama says. Even in areas where lithium has been found, such as
Bolivia, it hasn't yet been processed.
There are still some questions about the lithium market.
Although it's plentiful now, del Ama says there's some question as
to how much of that has been processed. The existing amount "should
be sufficient to meet demand over the next decade or so," he says.
After that, the supply could become challenged.
The fund itself is about evenly split between lithium producers
and battery producers, with the heaviest weights given to the
lithium industry's largest producers, who make up 44% of the fund's
assets. The United States is the largest country weighting at 49%.
, the world's largest producer of lithium, is 20% of the fund.
Japan, Canada, France and Australia all have smaller
Visit our commodity page to read all stories about