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5 Best Lithium ETFs to Buy in Q1 2025
Demand for lithium has continued to surge thanks to its application in EVs and batteries. Investing in lithium ETFs is one of the easiest ways to ride its growing trend. Read on to learn about our investment analysts’ top lithium ETF picks for this year.
What are the top lithium ETFs to buy?
Copy link to sectionLithium demand has jumped sharply in the past few years as the transition to clean energy continued. Most analysts believe that this demand will continue soaring in the next decade as more people embrace EVs and other clean energy solutions.
Lithium price jumped sharply a few years ago as investors anticipated this demand to rise. Recently, however, the price has dropped as this elevated demand has led to an oversupply. As a result, most lithium ETFs have dropped in the past few years.
# | ETF symbol | ETF name | Learn more |
---|---|---|---|
1 | LIT | Global X Lithium and Battery Tech | Learn more > |
2 | BATT | Amplify Lithium and Battery Technology ETF | Learn more > |
3 | ILIT | iShares Lithium Miners and Producers | Learn more > |
4 | ARKQ | ARK Autonomous Tech. & Robotics ETF | Learn more > |
5 | QCLN | First Trust Nasdaq Clean Edge Smart Green Energy ETF | Learn more > |
1. Global X Lithium and Battery Tech (LIT)
Copy link to section- Assets: $1.28 billion
- Expense ratio: 0.75%
- Year of inception: 2010
- 5-year performance: 48%
- Dividend yield: 1.57%
The LIT ETF invests in a range of companies and is a top option for investors wanting exposure to the full lithium cycle. Its holdings cover all aspects of lithium, from miners to battery producers and everything in between. Founded in 2010, LIT seeks to track the performance of the Solactive Global Lithium index.
The Global X Lithium and Battery Tech ETF has over $1.2 billion under management and includes stocks from all over the world. However, the majority of the fund is invested in USA and Chinese-based companies where 60% of its holdings reside. It operates a tired weighting system meaning it allocates more money to companies it has the most confidence in.
The LIT ETF is a highly concentrated ETF, with the top ten biggest constituents accounting for over 52% of the fund. Albermale, a leading Australian company, accounts for almost 10% of the fund, which is risky, especially when things are not going on well.
The other top companies in the fund are TDK Corp. Tesla, Mineral Resources, EVE Energy, and BYD. Also, it has a stake in companies like Samsung, Pilbara Minerals, and Sociedad Quimica Minera De Chile.
In addition to concentration, the other issue is that this fund is quite expensive, with its expense ratio of 0.75%.
2. Amplify Lithium and Battery Technology ETF (BATT)
Copy link to section- Assets: $77.85 million
- Expense ratio: 0.59%
- Year of inception: 2018
- 5-year performance: -22.4%
- Dividend yield: 3.87%
BATT is a new fund and was only created back in 2018. Compared to the Global x above, it’s much smaller in size, with just 87 holdings and net assets of around $200 million. It tracks the performance of the EQM Lithium & Battery Technology Index and invests in stocks that generate revenue from the development, production and use of lithium battery technology.
Amplify’s fund invests in companies globally although has a heavy weighting towards the Asian lithium market. It invests in a variety of companies and includes a number of well-known electric vehicle manufacturers.
The Amplify Lithium & Battery Technology ETF is made of 97 companies and is fairly balanced as the top ten constituents account for just 38.7% of the fund. Some of the biggest names are BHP Group, Contemporary Amperex, Tesla, BYD, and TDK.
The main benefit of investing in this fund is that it is balanced, has a high dividend yield of almost 4%, and has a 3-year dividend growth rate of 116%. Also, some of its top companies are highly diversified across multiple metals.
3. iShares Lithium Miners and Producers (ILIT)
Copy link to section- Assets: $2.72 million
- Expense ratio: 0.47%
- Year of inception: 2023
- 5-year performance: N/A
- Dividend yield: 1.82%
The iShares Lithium Miners and Producers ETF (ILIT) is another small lithium ETF you can consider. It is a tiny fund started in 2023 and with $2.72 million in assets. It tracks the STOXX Global Lithium Miners and Producers Index.
The fund has 49 companies in its portfolio, including firms like Pilbara Minerals, Sociedad Quimica Y Minera De Chile, Arcadium Lithium, Albermale, and Sigma Lithium. It has also invested in Lithium Americas, which has discovered a big deposit in Nevada.
Most of its companies are from China, followed by United States, Australia, Chile, South Korea, and Canada.
4. ARK Autonomous Tech. & Robotics ETF (ARKQ)
Copy link to section- Assets: $799 million
- Expense ratio: 0.0.75%
- Year of inception: 2014
- 5-year performance: 63
- Dividend yield: N/A
ARKQ is another ETF that is not directly focused on lithium but does give exposure to it through many of its holdings. The fund invests in a number of different sectors and includes some of the world’s top electric vehicle businesses. Tesla, BYD, Nio, and Niu technologies are its four biggest lithium based investments.
Alongside the EV market, it invests in robotics, 3D printing, energy, and space, offering investors easy access to a wide range of growth industries. While it spreads its investments globally, the majority of the fund belongs to US based companies. Its top ten holdings amount to over 50% of its total, with its largest investment, Tesla making up 10% of the fund.
Since its inception in 2014 its performance has been solid and in early 2021 it reached its all time high. Although ARKQ doesn’t offer a pure play lithium investment, its diverse portfolio offers a lot of opportunity in high growth markets. Many of its investments rely on lithium batteries and the fund offers an indirect way to invest in the commodity.
5. First Trust Nasdaq Clean Edge Smart Green Energy ETF (NASDAQ: QCLN)
Copy link to section- Assets: $692 million
- Expense ratio: 0.59%
- Year of inception: 2007
- 5-year performance: 61%
- Dividend yield: 0.84%
Final spot on our list goes to the First Trust Nasdaq Clean Edge Smart Green Energy ETF. It’s another fund that does not track lithium companies only, but rather the wider clean energy sector. Around 20% of the fund invests in the automobile industry, which in QCLNs case, means the electric vehicle market.
Through the ETFs investments in many of the world’s leading EV manufacturers, investors gain access to lithium. Infact, its two top holdings give a lot of exposure to lithium. Its largest investment is Tesla, followed by lithium company Albemarle corporation. Other notable lithium investments include, Nio and xPeng, both of which are included in its top ten.
Its performance replicates that of the clean energy industry, which in recent years has seen a surge in popularity. From 2020 to 2021 the fund grew by 400% before giving back some gains in 2022 and it has never recovered.
Where to buy the best lithium ETFs
Copy link to sectionYou can buy the best ETFs lithium through an online broker. Our investment experts have selected some of the top platforms around offering ETFs which you can find in the table below. Just click on any of the links to get started in a few minutes.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
What is a lithium ETF?
Copy link to sectionIt’s an exchange traded fund that invests in companies that generate large portions of their revenues from lithium. Exchange traded funds are available to buy on the stock market and you’re able to buy shares in them through a stock broker. Each fund usually tracks the performance of a specific industry or index.
There are very few ETFs that focus specifically on lithium. However there are many that include lithium companies as major holdings in their portfolios. Eclectic vehicle manufactures are a popular way to benefit from lithium prices as they use the commodity to power their cars.
Are lithium ETFs a good investment?
Copy link to sectionYes they can be, especially if recent history is anything to go by. The price of lithium has surged in recent years and that’s largely due to its use in batteries. The popularity of electric vehicles has also benefited the price of lithium. The EV market is expected to continue growing as traditional car makers move into the space.
By 2027 the lithium market is expected to grow to $4.93 billion, up from $3.39 in 2020 and investing in ETFs that focus on it, is one of the easiest ways to ride its anticipated growth. If you do decide to buy a lithium ETF you’ll need to register with an online broker. It’s also a good idea to keep up to date with the latest news which you can do on the links below and keep up to date with the best lithium ETFs of the 2025.
Methodology: How we choose the best lithium ETFs
Copy link to sectionAt Invezz, we are dedicated to helping investors make informed decisions by providing authoritative, accessible, and engaging advice and recommendations. Our curated section of the best Exchange-Traded Funds (ETFs) is carefully selected by our team of experienced market analysts and reviewed by a sub-editor. This methodology outlines the rigorous process we follow to ensure our ETF recommendations are up-to-date, reliable, and insightful.
- Analyst research & recommendations: Our seasoned market analysts use their in-depth sector knowledge to identify ETFs with strong potential, ensuring they meet high standards of performance, liquidity, and market potential.
- ETF evaluation: We evaluate ETFs based on their underlying assets, historical performance, expense ratios, and tracking accuracy, alongside macroeconomic factors and sector trends.
- Fund performance reports: We assess ETFs through the latest performance reports, analyzing key metrics like returns, volatility, expense ratios, and assets under management (AUM).
- Sector analysis and external recommendations: Our detailed sector analysis, combined with recommendations from reputable sources like Barron’s and Zacks, provides an additional layer of validation for our selections.
- Quarterly review & refresh: We update our curated ETF list quarterly, re-evaluating each ETF based on the latest reports, industry developments, and market conditions to ensure our recommendations reflect the most current information available.