by Ian Cooper

Electric vehicle sales are only set to accelerate.

In fact, according to the International Energy Agency (IEA), sales may be on course to hit all-time highs this year. As noted by CNBC, “The IEA said global sales had doubled in 2021 to represent nearly 9% of the car market. Looking forward, 2022 was ‘expected to see another all-time high for electric vehicle sales, lifting them to 13% of total light duty vehicle sales globally.’”

Better, the IEA said EV sales hit 6.6 million in 2021. And that in the first quarter of 2022, sales were already up to two million, a 75% increase year over year. Not only is that great news for electric vehicle stocks, like Tesla (TSLA) and Nio (NIO), it’s even better news for lithium stocks. After all, lithium is one of the most needed elements of an EV.

Unfortunately, there’s more demand for lithium than supply.

Start pulling in more than a part time job. In about 5-10 min a day you can make more than most sidehustles. Click here to check it out for just $1.

And that’s why lithium prices may not come down for quite some time.

“Lithium carbonate prices in China, the benchmark in the fast-growing market, stand at about $71,000 a metric ton, according to price-assessment firm Benchmark Mineral Intelligence. That is almost four times as high as a year ago and just below the record set this March in yuan terms,” says The Wall Street Journal.

Here are a few ways to trade that news.

Global X Lithium ETF (LIT)

One of my favorite ways to trade any hot sector is with an ETF, such as the Global X Lithium ETF (LIT). Not only does this ETF offer great diversification, it does so at less cost. 

With an expense ratio of 0.75%, the LIT ETF offers exposure to stocks, such as Albemarle (ALB), BYD Co. (BYD), LG Chem (LG), Tesla (TSLA), Livent Corp. (LTHM), Lithium Americas Corp. (LAC), Quantumscape Corp. (QS), and Piedmont Lithium (PLL) to name a few. 

Amplify Advanced Battery Metals and Materials ETF (BATT)

Another solid ETF to consider is the Amplify Advanced Battery Metals and Materials ETF (BATT). 

With an expense ratio of 0.59%, BATT offers exposure to companies involved in battery storage, battery metals and materials, and electric vehicles. Some of its top holdings including Tesla, Glencore PLC, Nio Inc., Li Auto Inc., and LG Chemical to name a few. 

Lithium Americas (LAC)

From current prices, I’d like to see Lithium Americas rally back to about $32, long-term. Helping, construction activities at Lithium Americas Caucharí Olaroz remain on track to achieve first production by mid-2022 on the initial 40,000 tonnes per annum operation. At its Thacker Pass mine, results of a Feasibility Study on the first phase of Thacker Pass (for at least 30,000-35,000 tpa of lithium carbonate) are expected by year end.