Keep an eye on the Global X Lithium ETF (LIT).
Over the last few days, the LIT ETF found double bottom support at $62.37. From here, we’d like to see the ETF refill its bearish gap around $68 a share.
All because the lithium boom shows no signs of cooling off. After all, if the world wants to meet its climate goals, it needs as much lithium as possible. According a new report published by Bloomberg NEF on investment in the energy transition, annual spending on passenger EVs hit $388 billion in 2022, up 53% from the year before.
It’s part of the reason auto companies, like General Motors are investing millions to secure lithium supply. In fact, the company just announced plans to invest $650 million into Lithium Americas to secure supply. All because “Automakers are starting to realize that the only way to guarantee lithium supplies is to own or have a controlling stake in the source,” added CNBC.