One of my favorite ways to trade any hot sector is with an ETF, such as the Global X Lithium ETF. Not only does this ETF offer great diversification, it does so at less cost. At $60 a share, with an expense ratio of 0.75%, the LIT ETF offers exposure to stocks, such as Albemarle, BYD Co., LG Chem, Tesla, Livent Corp., Lithium Americas, and Quantumscape Corp.

The lithium story is only set to accelerate.

In fact, according to Bloomberg, “Availability and costs of crucial battery materials like lithium, cobalt and nickel have been key concerns for years among EV makers trying to build out their electric lineups. The issue has gained more urgency in recent months due to rising competition to strike supply pacts with miners and project developers and by wild swings in raw material costs. The spot value of lithium consumption alone surged to about $35 billion in 2022, from $3 billion in 2020.”