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How to Invest in Lithium UK

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Over the past decades, lithium has become an essential commodity and in-demand product for technology firms and electric vehicle manufacturers. This is because lithium is an important component of batteries for mobile phones, laptops, and any other digital device.

In this article we’ll analyze lithium’s historical price performance, and some brokers that give users access to Lithium assets in the UK.

Lithium Investment Platforms

At the time of writing, there’s only one major exchange that is expected to launch lithium future contracts in the near future – The London Metal Exchange.

Below we review some popular UK brokers and investment apps that offer you a selection of lithium financial assets.

1. eToro

eToro commodity brokereToro, which was founded in 2006 and has grown to become the largest social trading network in the world, is offering users to buy and sell more than 3000 shares from 17 different stock exchanges. Notably, eToro is a CFD platform, meaning the process of buying assets via this platform is different than traditional brokerage firms. At eToro, you do not own the shares but simply can speculate on the price of the asset. This allows you to trade financial assets without any fixed trading commissions and get leverage trading. 

eToro is mostly known for its social trading tools and the unique interface that is more similar to other well-known social applications rather than a trading platform. As such, the learning process is simpler and the user-friendly platform simply shortens the learning curve. From the eToro dashboard, users get access to shares, ETFs, FX currency pairs, commodities, stock indices, and cryptocurrencies. In addition, eToro offers CopyPortfolios, which allow you to invest in a basket of different assets based in a certain sector region, or market.

eToro platform

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As we mentioned above, eToro also offers in-house managed investment funds called CopyPortfolio for those who want to diversify their portfolio. These are basically a collection of stocks, ETFs, and commodities that enable a user to invest directly in a managed portfolio. This is one of the features offered by eToro though you’ll have to meet a minimum deposit requirement of $5000 to use this service.

eToro copyportfolios

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2. Plus500

plus500 logoPlus500 is another UK stock brokerage firm offering investors to buy shares, including lithium-related products. With Plus500, you get access to more than 2000 stock CFDs from all major exchanges around the globe.

Among the stocks that Plus500 offers, you’ll be able to buy various lithium-related stocks like QuantumScape, which is a San Jose-based company specializing in the production of lithium-ion batteries for electric cars. Additionally, the broker offers the most well-known lithium ETF – the Global X Lithium & Battery Tech.

QuantumScape Plus500

Much like eToro, Plus500 is regulated by the FCA and thus, is allowing users to leverage their stock and ETF positions with up to 5:1. Also, Plus500 does not charge fixed fees for trading shares or any other financial instrument for that matter. Instead, the broker charges a spread and overnight fee only.

Plus platfom lithium

The minimum deposit to start investing in lithium via Plus500 is $100 (or currency equivalent). The broker also offers a paper trading account for potential users that want to test the platform before risking real capital.

Research Lithium Investment

Now that you have chosen a platform to utilize your trading activity, it’s time to make in-depth research about lithium and the ways in which you can invest in this material. In general, you need to see the big picture before you invest in Lithium and realize that this is not an ordinary investment.

Ways to Invest in Lithium

There are two primary ways in which you can get exposure to lithium – by investing in lithium production and mining public traded companies and ETFs that collect various stocks of lithium firms.

Lithium Stocks

In recent years, Lithium stocks have been soaring due to the increasing demand for electronic devices and electric cars.

Here are some popular lithium stocks to watch based on trading volumes:

  • QuantumScape (NYSE: QS) 
  • Albemarle Corporation (NYSE:ALB)
  • EnerSys (NYSE: ENS)
  • Energizer Holdings, Inc (NYSE: ENR)
  • Sociedad Química y Minera (NYSE: SQM)
  • Livent Corporation (NYSE: LTHM)
  • FMC Corporation (NYSE: FMC)

Lithium ETFs

Another option to invest in lithium is through exchange-traded funds (ETFs). Below, we have listed some popular lithium and battery tech Exchange Traded Funds you can invest in.

  • The Global X Lithium & Battery Tech ETF (NASDAQ: LIT)
  • ETFS Battery Tech & Lithium ETF (ASX: ACDC.AX)
  • Amplify Lithium & Battery Technology ETF (NASDAQ: BATT)

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Conclusion

in this guide on how to invest in lithium UK, we have covered the most crucial things you need to know about this material. We came to the conclusion that lithium, much like water, could be the new gold in the upcoming decades, particularly given the fact that electric vehicles from Tesla (TSLA), Nio, Ford Motors, and others are going to be a huge industry in the near future.

If you are looking for a way to invest in lithium, you’ll have to find an online trading platform that gives you access to shares of lithium producers and miners.

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FAQs

Can I invest in lithium as a commodity?

Tom Chen author check sign Pro Investor

Tom is an experienced financial analyst and a former grains derivatives day trader specializing in futures, commodities, forex, and cryptocurrency. He has over 10 years of experience in the Finance industry spanning across a day trader position at Futures First, and a web content editor and writer at FXEmpire. Tom is an expert in the areas of day trading and technical analysis as it applies to futures, cryptocurrencies, forex, and stocks. Tom’s primary interests include economics, trading, social-economic systems, technology, and politics. He has a B.A. in Economics and Management, a Journalism Feature Writing certificate from the London School of Journalism. Tom has written for various websites, such as FX Empire, The Motley Fool, InsideBitcoins, Yahoo Finance, and Learnbonds.

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