Sprott expands energy transition fund suite with launch of nickel ETF

Horizonte Minerals Brazil nickel projectHorizonte Minerals' Araguaia nickel mine in Brazil is the longest-lived project recently completed. (Image courtesy of Horizonte Minerals.)

Sprott Asset Management LP has announced the launch of Sprott Nickel Miners ETF (NASDAQ: NIKL), the only U.S.-listed exchange-traded fund focused on nickel mining companies.

NIKL represents the latest addition to Sprott’s suite of energy transition-focused ETFs following its launch of four critical minerals ETFs in early February.

“Nickel is a vital component in the rechargeable batteries used for hybrid and electric vehicles [EVs] and clean energy storage,” said John Ciampaglia, CEO of Sprott Asset Management, in a release.

“Automakers have begun adding more nickel to EV batteries to increase their drivable range. Demand for this critical mineral for use in EVs and battery storage may increase nearly 20 times by 2040, relative 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, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Nickel Miners Index (NSNIKL). The index is designed to track the performance of a selection of global securities in the nickel industry, including nickel producers, developers and explorers.

This new ETF joins Sprott’s energy transition fund suite, which is focused on the investment opportunity of the critical minerals needed to generate, transmit and store cleaner energy. The suite now comprises a total of seven funds.

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