Tesla’s story is well known to everyone, but Chinese billionaires are starting new companies in the sector, with a target of 5 Mln electric cars by 2020. To give an idea of the enormous potential in China, during 2016 in Germany 25’000 electric vehicles have been sold compared to 500’000 in China. In order to reach this impressive goal, China has to ensure any lithium production by acquairing lithium miners. Even if the sector is hot, by analysing the ETF Global X LITHIUM (LIT US), the market is not investing in pure lithium producers, therefore KTS is of the opinion that still exists certain inefficiencies in the market.