ASX members included on lithium EFT

The EFT will allow investors tempted by lithium’s exciting prospects as an ingredient in electric car batteries to invest in a basket of 10 stocks covering the lithium value chain, from mining and refining through to lithium battery production.
On its inception, 51% of the index includes lithium battery manufacturers, while 49% consists of lithium mining and refining companies. The three largest components of the ETF are lithium producers SQM from Chile, and FMC Corporation and Rockwood Holdings from the US.
When processed, lithium has the capacity to store electric energy more efficiently than any other material, with the metal in demand for green energy products and the computer systems that control them for electric cars, solar, wind and water power.
Locally, Galaxy Resources, which is developing the Mt Cattlin Lithium Project, celebrated its inclusion.
The company’s managing director, Iggy Tan, said he was pleased Galaxy had been selected in the world's first lithium ETF. Galaxy is developing a hard rock spodumene mine at Ravensthorpe in Western Australia, with concentrate to be further processed at a downstream lithium processing facility in China.
“Galaxy's inclusion makes sense given the company's commitment to creating value further down the lithium supply chain,” Mr Tan said.
“We are now producing ore from our mine and making strong progress on the construction of our downstream processing facility which will produce lithium carbonate to sell as high grade feedstock for battery producers.”
Mr Tan said the first ETF was a positive development for the entire sector as it provides recognition of lithium's growing appeal as an investment opportunity.
“Global lithium carbonate production has recovered significantly since the Global Financial Crisis and is only going to increase further as the push towards 'green' transport solutions such as electric cars and E-bikes gains momentum,” he said.
Orocobre Limited, which is dual-listed on the Australian and Toronto stock exchanges, is developing the Salar de Olaroz lithium-potassium brine project in Argentina’s Puna region.
Managing director, Richard Seville said, “Orocobre's selection highlights our important position in the emerging lithium industry, and the promising outlook for lithium as a strategic commodity.”

Contact: charles.macdonald@informa.com.au