Top Lithium ETFs in Canada 2026

Lithium remains a critical commodity heading into 2026, driven by its essential role in electric vehicle batteries, energy storage, and consumer electronics. Global demand has more than tripled since 2018, and while lithium prices pulled back in 2023 and 2024, long-term forecasts still point to strong growth as EV adoption and battery capacity continue to expand.

For investors who want exposure to this trend without the risks of picking individual lithium stocks, lithium exchange-traded fund (ETF) offer a diversified and more balanced approach. These funds provide exposure to miners, developers, and refiners across the supply chain, helping reduce volatility in a historically cyclical market.

While Canada has relatively few homegrown lithium ETFs, several options still allow investors to participate in the sector. Below we’ll break down the risks and rewards of these hot commodity funds and introduce some lithium ETFs you might want to choose from.

What is a lithium ETF?

A lithium ETF is an investment that tracks (or seeks to surpass) the performance of a basket of lithium companies.

Many lithium ETFs are passive, meaning the fund manager seeks to replicate, but not beat, an index of lithium companies. Others you’ll find are actively managed, meaning the fund manager has chosen a segment of the lithium industry and intends to outperform it.

The underlying stocks in lithium ETFs are often mining companies. These companies are engaged in the procuring and production of various substances into a useable lithium metal, since lithium is not found naturally. These companies have numerous risks and operating costs, which make investing in them individually not for the faint of heart.

Lithium is a major ingredient in lithium-ion batteries, which has made it a hot, hot commodity. Numerous companies rely on lithium to manufacture products, including those that rely on semiconductors (such as gaming, smartphone, and computer companies) and need storage for renewable energy (such as electric vehicle, solar panel, and wind turbine companies).

Lithium prices, like those for other raw materials and metals, can experience wild swings, based entirely on supply and demand. This makes lithium stocks particularly volatile. The benefit of a lithium ETF, then, is that it can bring some stability to your investment by exposing you to a wide range of lithium companies.

Top lithium ETFs in Canada

Buying lithium ETFs in Canada can be a challenge. After all, few such ETFs exist worldwide and only one is a TSX native.

That said, Canadian investors have access to a handful of lithium ETFs. Below, we’ll briefly describe three you might want to consider.

Note: Lithium ETFs, like other exchange-traded funds, have management expense ratios (MERs). This fee is the cost of owning the ETF and it’s expressed as an annual percentage. For instance, if your ETF has a MER of .40%, then it would cost you roughly $40 per year if you invested $10,000.

1. Horizons Global Lithium Producers Index ETF 

Horizons Global Lithium Producers Index ETF (TSX: HLIT) remains Canada’s only pure-play lithium ETF listed on the TSX, offering diversified exposure to global lithium mining and production companies. The fund tracks an index of established and emerging lithium producers, giving investors broad access to the upstream side of the lithium supply chain.

Geographically, HLIT continues to be heavily weighted toward Australia, which accounts for just over half of the portfolio, reflecting the country’s dominance in hard-rock lithium production. The United States represents just under one-fifth of assets, followed by meaningful exposure to Chile, China, and Canada. The ETF’s largest holdings still include major global players such as Sociedad Química y Minera, Pilbara Minerals, and IGO Limited, alongside other diversified lithium producers.

After a sharp correction in lithium prices through 2023 and 2024, HLIT has remained volatile, with prices swinging widely as investors reassess near-term oversupply versus long-term EV-driven demand. As of late 2025, the ETF was trading around $20, offers a low-single-digit distribution yield (around 1.7%), and had experienced a wide 52-week trading range. For Canadian investors, HLIT remains a straightforward way to gain diversified exposure to lithium producers while avoiding the single-stock risk inherent in this cyclical commodity market.

2. Global X Lithium & Battery Tech ETF

Global X Lithium & Battery Tech ETF (NYSE: LIT) is widely regarded as the world’s first lithium-focused ETF and remains one of the largest and most liquid options in the space. Unlike pure lithium mining funds, LIT provides broader exposure across the entire battery supply chain, including lithium miners, chemical refiners, and battery manufacturers.

The ETF holds major global players such as Albemarle, along with battery and component leaders involved in lithium-ion technology used in electric vehicles, energy storage systems, and consumer electronics. This structure gives investors exposure not only to lithium prices, but also to downstream battery demand and technological adoption trends.

After the pullback in lithium and EV-related stocks during 2023 and 2024, LIT has rebounded sharply, reflecting renewed optimism around battery demand and long-term electrification trends. As of late 2025, the ETF trades in the mid-$60 range, up meaningfully from its prior lows, manages more than $1.46 billion in net assets, and carries a 0.75% expense ratio. For Canadian investors comfortable holding U.S.-listed ETFs, LIT offers diversified exposure across lithium producers and battery technology companies, helping reduce reliance on any single part of the value chain while capturing the sector’s recovery.

3. Amplify Lithium & Battery Technology ETF

After a difficult stretch for lithium and EV-related stocks in 2023 and 2024, the Amplify Lithium & Battery Technology ETF (NYSE: BATT) has also participated in the sector’s recovery. As of late 2025, the ETF is trading above its early-2025 levels, reflecting renewed investor interest in battery demand and electrification trends. BATT continues to offer broad exposure across the lithium value chain, from miners and refiners to EV and battery manufacturers such as Tesla and LG, making it a diversified option for investors who want lithium exposure beyond pure producers.

RELATED: Top Canadian Technology ETFs

Pros of investing in lithium ETFs

• Exposure to a hot commodity. Lithium is a much-needed metal for battery production. Unless someone figures out a new battery composition that doesn’t require lithium, the lithium market could have enough demand to sustain itself for decades ahead.

• No need to choose individual lithium stocks. That’s part of the anxiety of investing, right? So many choices, so little time to analyze companies. A lithium ETF bypasses the choices, allowing you to invest in numerous companies with one share.

• Possible hedge against volatility. The built-in diversification could help protect the value of your investment during troubling times. 

Cons of investing in lithium ETFs

• Potentially less return on investment than stocks. For investors who crave higher returns, lithium ETFs may grow at an uncomfortably slow pace. Picking winning lithium stocks could give you a good return on investment.

• Trading fees and MERs. Because ETFs trade like stocks, you’ll pay a trading commission when you buy and sell them. Likewise, you’ll pay your fund manager the MER every year.

• Low or no dividend. Very few lithium ETFs pay a dividend to shareholders. Of those that do pay dividends, the dividend yield is often insignificant when you factor in the MER.

• There are still investing risks. Make no mistake, you can lose money on a lithium ETF. Though they have less price volatility than lithium stocks, lithium ETFs can produce negative returns if the entire lithium industry performs poorly.

Are lithium ETFs right for you?

Lithium ETFs are ideal if you’re a moderately conservative investor and want decent exposure to a large part of the lithium market. It might be fitting for the moderately conservative, though likely too risky for conservative investors and not rewarding enough for those who want higher returns.

It’s important to consider management expense ratios and trading commissions when buying ETFs. You might also want to look at the year-to-date return and various assets (in this case, lithium companies) under management.

For those who want higher returns, you might want to consider investing in individual lithium stocks. Our guide on lithium stocks could help you identify some great lithium companies to start with.