Despite geopolitical tensions continuing the rally in gold and silver, lithium is performing well with both gaining nearly 30% YTD.
Driven by EV batteries and grid storage, the global lithium market is projected to grow at a compound annual growth rate of 14.5% through 2033.
LIT, ILIT, and BATT can provide exposure, each providing their own niche for investors looking to play the metal rally.
Interested in the Global X Lithium & Battery Tech ETF? Here are five stocks we like best.
After the rapid sell-off that began on January 29, gold and silver prices have rebounded. Recently, the impetus for raising the prices of these precious metals was the war between Iran and its allies, the United States and Israel, which began on Saturday, February 28.
But just as precious metals’ rally was last year — and it’s continued significantly this year — both gold and silver are being outperformed by an important industrial metal: lithium.
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Gold’s nearly 19% year-to-date (YTD) gain and silver’s nearly 17% YTD gain are impressive and continue to generate significant headlines. But so far in 2026, lithium has generated a nearly 30% YTD gain.
Here’s why the metal’s price is rising, and three ways investors looking for exposure can add it to their portfolios.
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More than 75% of the world’s supply is used for lithium-ion electric vehicle (EV) batteries and electronics, but the metal’s applications also include grid storage, heat-resistant materials, pharmaceuticals, and aerospace alloys, as well as thickening agents in lubricating oils.
According to industry consulting firm Grandview Research, the global lithium market is estimated to be worth more than $32 billion by 2025 and is forecast to grow at a compound annual growth rate (CAGR) of 14.5 percent from 2026 to 2033. By the end of this forecast period, the total market value is expected to be significant.
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And while EV adoption is only gradually catching on in the U.S., the U.S. lithium market — valued at $1.06 billion by 2023 — is expected to grow at a CAGR of 12.6% from 2030 to 2030, with major drivers for increased demand including lithium-ion batteries, consumables, and grid storage.
With $1.67 billion in assets under management (AUM), the Global X Lithium & Battery Tech ETF (NYSEARCA: LIT ) is the largest lithium exchange-traded fund (ETF) in the world.
The fund sees an average daily trading volume of nearly 456,000 shares, and had gained more than 16% this year before making a healthy comeback on February 25. Today, LIT shares are trading nearly 8% lower but are already rising again.
Among its top five holdings are Albemarle (NYSE: ALB ) — the world’s largest lithium producer — Sociedad Quimica y Minera de Chile (NYSE: SQM ), and British-Australian mining company Rio Tinto (NYSE: RIO ), the fund’s largest holding at nearly 23%.
While LIT’s focus is primarily mining, it also provides exposure to companies operating in the chemical, electronics, renewable energy, and EV markets. By geographic breakdown, 39% of ETF companies operate in the United States, while more than 29% are located in China, and another 11% call South Korea home.
The fund earns an average overall rating of Buy based on 103 analyst ratings issued over the past year covering the six companies in LIT’s portfolio.
With a focus on lithium miners and producers, the iShares Lithium Miners and Producers ETF (NASDAQ: ILIT ) also debuted on February 25 after gaining nearly 17% YTD. Like LIT, the fund has already started to taper back.
Considerably smaller than its peers, the ETF has $19.63 million in AUM and an average daily trading volume of just under 50,000 shares, which could present short-term traders with liquidity concerns. But for buy-and-hold investors with longer horizons, the fund can provide them with access to a basket of lithium miners and compound makers.
While less diversified than LIT, current short gains stood at just 1.86% – lower than LIT’s 2.26% and nearly 26% short gains over the past few months.
ILIT earns an aggregate rating of Hold based on 71 analyst ratings issued over the past year covering seven companies in the fund’s portfolio, which also includes market incumbents Albemarle and Sociedad Comica and Menera de Chile.
Before the reversal on Feb. 25, the Amplify Lithium & Battery Technology ETF (NYSEARCA: BATT )—a lithium fund shorting EV batteries—had gained more than 17% YTD. After returning around 9% in the likes of LIT and ILIT, the fund is back on the rise.
The ETF, which has $115.50 million in AUM and a daily trading volume of nearly 83,000 shares, owns lithium producers including Albumarl, which also offers EV manufacturers and EV battery technology. Its second-largest holding, for example, is Magnificent Seven member Tesla (NASDAQ: TSLA ) with a 7% weighting.
Current short interest of 1.67% is the lowest of all three lithium ETFs on this list and is down more than 47% from last month. Meanwhile, institutional inflows of nearly $6 million in the past year have resulted in outflows of only $731,000.
The article “Gold and silver rebound, but both metals outperform” was originally published by MarketBeat.
