Sprott Asset Management LP announced the launch of the Sprott Nickel Miners ETF, the only U.S.-listed exchange-traded fund focused on nickel mining companies that provide key minerals needed for the clean energy transition.
NIKL is the latest addition to Sprott's line of energy transition-focused ETFs, following the launch of four key mineral ETFs in early February.
"Nickel is an important component of rechargeable batteries for hybrid and electric vehicles [EVs] as well as clean energy storage," John Ciampaglia, CEO of Sprott Asset Management, said in a media release.
"Automakers have started adding more nickel to electric vehicle batteries to increase their range," Ciampaglia said. "Demand for this key mineral used in electric vehicles and battery storage could increase nearly 20 times by 2040 compared to 2020. We believe nickel producers are well positioned to benefit from the significant investment required to fund the energy transition."
The Sprott Nickel Miners ETF seeks to provide investment results that are broadly in line with the total return performance of the Nasdaq Sprott Nickel Miners Index (NSNIKL) before fees and expenses. The index is designed to track the performance of selected global securities in the nickel industry, including nickel producers, developers and explorers.
The new ETF joins Sprott's portfolio of Energy Transition funds, which focus on investment opportunities in the production, transmission and storage of key minerals needed for clean energy. The suite now has seven funds in total.
