The Trump administration’s latest $500 million push into critical minerals could put several ETFs on investors’ radar.
The reason is where the money is going: seven companies developing domestic lithium, cobalt, battery-material and recycling projects. Lilac Solutions and Jervois each received $100 million, while Nth Cycle was backed for a battery-metal recycling project.
The Department of Energy (DOE) is targeting processing, refining and recycling — areas that have historically been bottlenecks in the U.S. battery supply chain. For investors, the spending highlights the companies and industries that could benefit as Washington seeks to build a more secure domestic supply of critical minerals.
The Broadest Critical-Minerals Play
The Sprott Critical Materials ETF (NASDAQ:SETM) may be the most direct diversified expression of that policy theme.
SETM holds companies involved in critical materials including lithium, copper, uranium, nickel, cobalt and rare earths. The fund had about $596.6 million in net assets and a 0.65% expense ratio.
Its holdings also show why it isn’t simply a lithium ETF. Freeport-McMoRan Inc. (NYSE:FCX), Kazatomprom (OTC:NATKY), Cameco Corporation (NYSE:CCJ), and Albemarle Corp (NYSE:ALB) are among its largest positions.
That makes SETM particularly relevant if Washington’s strategy evolves from battery materials into a broader U.S. critical-minerals security trade.
The Cleaner Lithium-to-Battery Bet
For investors who want to stay closer to the battery supply chain, the Global X Lithium & Battery Tech ETF (NYSE:LIT) is arguably the cleaner vehicle.
LIT explicitly covers the lithium cycle, including mining, refining and battery production. The fund has about $1.5 billion in net assets.
That matters because the latest federal grants are aimed precisely at strengthening the middle of that chain, not merely increasing raw-material production.
But LIT is also a broader global bet, meaning investors aren’t getting a pure U.S. reshoring trade.
The Strategic-Minerals Angle
The VanEck Rare Earth and Strategic Metals ETF (NYSE:REMX) provides another way to play the administration’s push to reduce dependence on foreign supply chains.
REMX’s biggest holdings include Albemarle, Pilbara Minerals (OTC:PILBF), MP Materials Corp (NYSE:MP) and Lynas Rare Earths (OTC:LYSDY).
That gives investors exposure to lithium and rare earths simultaneously, an important distinction as Washington increasingly treats critical minerals as a national-security issue, rather than simply an EV-demand story.
The ETF takeaway
For investors looking for a broad critical-minerals reshoring play, SETM offers the widest basket. LIT is more targeted toward the lithium-to-battery chain, while REMX provides greater exposure to rare earths and strategic metals.
The bigger opportunity may be that Washington is increasingly investing in the processing layer of the supply chain, potentially turning critical minerals from an EV theme into a much broader U.S. industrial and national-security investment story.
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