I’ve pounded the table about the EV megatrend for a while. We’re already in the transition from internal combustion engine (ICE) vehicles to EVs, and it promises to reshape the global economy, notes Sean Brodrick, editor of Wealth Megatrends.

On Nov. 10, EV-maker Rivian (RIVN) made its Wall Street debut. And it wasn’t just any debut ... it was the biggest initial public offering (IPO) since Facebook. In the next few years, we’ll see incredible opportunities. Soon, you won’t be able to afford NOT to own an EV. And right now, you can’t afford to NOT invest in the megatrend.

The latest piece of that bullish puzzle is the $1.2 trillion infrastructure bill recently passed by Congress. It has money to build bridges, roads and electrical lines. But it also allocates billions of dollars to bolster EV use and affordability.

So, which EV maker should you buy? Tesla (TSLA)? Newcomer Rivian? Volkswagen (VWAGY), which is pouring money into EV and battery research faster than anybody? Ford or GM, both of which are quickly shifting to EVs?

It’s hard to pick a winner: We saw 3,000 individual automakers come and go during the internal combustion engine era in America. If I was going to recommend investing in EVs specifically, I would choose an exchange-traded fund.

There are two good ones: the Global X Autonomous & Electric Vehicles ETF (DRIV) and the KraneShares Electric Vehicles and Future Mobility ETF (KARS). Of these, I prefer KARS with its total expense ratio of 0.70% and holdings that include Telsa, Ford, GM, Daimler AG (DMLRY), Chinese EV maker NIO (NIO) and more.

But I’m not recommending an EV stock. I believe the better way to play the EV megatrend is through lithium. Because no matter the manufacturer, all EVs have one thing in common: a lithium battery.

Demand for lithium in various energy applications is expected to increase 7% to 35% annually over the next five years, with use in EVs and other transportation leading the way. Grid storage should grow at a fast pace, but the current installed base is small and contributes a minimal amount to near-term lithium consumption ... for now.

Lithium is an extremely useful metal. Credit Suisse Group recently said lithium demand might triple by 2025 from 2020 levels and that supply would be stretched to meet that demand. A great way to play this trend is the Global X Lithium & Battery Tech ETF (LIT).

The ETF has an expense ratio of 0.75%. Its top holdings include lithium miner Albemarle (ALB), Tesla, TDK (TTDKY), Chinese EV and battery maker BYD (BYDDY), Contemporary Amperex Technology (a Chinese company that’s the world’s biggest battery maker), Gangeng Lithium (GNENF) and many more.

The ETF gives you exposure to the lithium spectrum, from mining to battery making to EV manufacturers. LIT has a dividend yield of 0.62%. That’s not a lot, but that annual payout is projected to grow 79.32% per year over the next three years. So, it’s a dividend grower, too. LIT keeps breaking out, consolidating, then breaking out again. My target over the next year is $130. It could go higher.

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