For investors seeking momentum, iShares Lithium Miners and Producers ETF (ILIT Quick QuoteILIT - Free Report) is probably on the radar. The fund just hit a 52-week high and is up 151.5% from its 52-week low price of $6.46/share.

But are more gains in store for this ETF? Let’s take a quick look at the fund and the near-term outlook on it to get a better idea of where it might be headed:

ILIT in Focus

The underlying STOXX Global Lithium Miners and Producers Index comprises of U.S. and non-U.S. equities of companies primarily engaged in lithium ore mining and lithium compounds manufacturing. The product charges 47 bps in annual fees and yields 2.19% annually (see: all materials ETFs here).

Why the Move?

Rising global demand for electric vehicles and energy storage is driving the space. China commands over half of the world’s lithium refining capacity, putting Western economies in a vulnerable position. The U.S. government is striving to reduce dependency.  Also, Beijing indicated that it would double EV charging capacity to 180 gigawatts by 2027, boosting lithium-rich energy storage systems, as quoted on Trading Economics.

More Gains Ahead?

ILIT might continue its strong performance given a positive weighted alpha of 106.47 (as per Barchart.com).