Global X Lithium & Battery Tech ETF

LIT

Market cap $1.61B

Global X Lithium & Battery Tech ETF (LIT) is rated Sell due to an excessive 20% portfolio weight in Rio Tinto (RIO), which dilutes lithium exposure. LIT's portfolio evolution now heavily favors RIO, whose core earnings remain iron ore-driven, making the ETF less representative of lithium and battery growth. Consensus estimates do not yet reflect the recent doubling in lithium carbonate prices, suggesting potential upside for miners if prices hold, but RIO remains a laggard.

While investors fixated on artificial intelligence throughout 2025, the battery supply chain quietly delivered exceptional returns, powering everything from electric vehicles to grid storage.

Global X Lithium & Battery Tech ETF has surged 60% YTD, driven in part by tariff and trade war headlines. Much of LIT's rally appears sentiment-driven rather than based on underlying profitability or improved fundamentals of its constituents. I also have some concerns about how well the ETF's portfolio mix will capture value created by the lithium sector going forward.

Global X Lithium & Battery Tech ETF surged 59% in 2025, outperforming major benchmarks, but now faces valuation and technical headwinds. LIT's concentrated portfolio, high volatility, and elevated expense ratio warrant cautious position sizing and disciplined trading tactics. Valuation is less compelling with a 23.2x P/E and just 5.1% long-term earnings growth, resulting in an unattractive PEG ratio.

When it comes to getting electric vehicles (EV) exposure, the most recognized name within domestic borders is certainly Tesla. However, BYD Company is a name that more investors should be familiar with, and one of the top ETFs with exposure to BYD is the Amplify Lithium & Battery Technology ETF (BATT).

By 2030, global trends will be dominated by AI, electrification, renewable energy, and demographic shifts (retired baby boomers), shaping investment opportunities and risks. Equity markets, especially US and AI-related stocks, are currently overvalued; investors should prepare a shopping list for quality ETFs and stocks to buy after downturns. Top ETFs span global, US, Asia, India, renewables, EVs, aging demographics, lithium, gold, and silver, balancing growth and defensive themes.

Artificial intelligence (AI), cloud computing, and machine learning are just a few of the obvious tech innovations dominating the majority of investor attention spans these days. Along with the companies focused on these technologies, attention also diverts to those integral to meeting hardware demands, like semiconductor firms.

The global electric vehicle market remains highly competitive, with China as the dominant region and the U.S. seeing a temporary Q3 boost from expiring tax credits. BYD Company Limited leads in global EV sales but saw a rare year-over-year decline in Q3, mainly due to intense competition in China, though exports are surging. Xiaomi is emerging as a standout, rapidly scaling EV sales and maintaining strong momentum despite being a newcomer and not an EV pure-play.

Lithium-themed ETFs touched 52-week highs last week, prompting questions on if the rally is driven more by political tailwinds than commodity fundamentals.

LIT surges 78.9% from its low to a 52-week high as lithium demand fuel momentum in battery metal miners.