Frequently Asked Questions (FAQs)

The Sprott Lithium Miners ETF is listed on Nasdaq^® under the symbol “LITP.” Investors can purchase LITP in a brokerage account or by contacting their financial advisor.

The Sprott Lithium Miners ETF (LITP) seeks to provide investment results that, before fees and expenses, correspond generally to the total return performance of the Nasdaq Sprott Lithium Miners™ Index.

Eligibility Requirements

• Be a security listed on an approved exchange (China A-Shares are not eligible).
• The security’s issuer must be classified by Sprott as a lithium producer, developer or explorer.
• Have an intensity score³ of at least 25%.
• Have a free-float market capitalization of at least $40 million or $25 million for existing constituents.
• The security must have been publicly traded on an eligible exchange for at least three full calendar months prior to the reconstitution reference date.
• Have a three-month average daily traded value of at least $100,000 or $50,000 for existing constituents.

Constituent Weighting Process

• The index is a modified theme-adjusted free-float market capitalization-weighted index.
• A theme-adjusted free-float market capitalization is calculated for each constituent.
• Free-float market capitalization is used to weight companies with an intensity score greater than or equal to 50%.
• Companies with an intensity score of 25% to less than 50% are given an adjusted market capitalization by multiplying their intensity score by their free-float market capitalization, and the company’s weight in the index is determined by its adjusted market capitalization.
• For stocks without revenue, or for which revenue is an inappropriate characteristic, the intensity score is given at 50%.
• Constituents’ initial weights are determined by dividing each constituent’s theme-adjusted free-float market value by the aggregate theme-adjusted free-float market value of all constituents
• Initial weights are adjusted to meet the following constraints:
  • No constituent weight may be less than 0.30%.
  • For each stock in the top five by initial weight, the maximum weight is set to 9.75%.
  • For each constituent not in the top five, weight may not exceed 4.75%.
  • In the event the sum of securities’ weights with intensity scores between 25% and 50% exceeds 15%, the sum of these securities’ weights is set at 15%, with the excess redistributed pro rata among other eligible constituents.

Index Rebalancing

• The index is reconstituted semi-annually in June and December, effective at the market open on the first trading day following the third Friday.
• Effective September 21, 2026 onwards, the index is rebalanced quarterly in March, June, September and December, effective at the market open on the first trading day following the third Friday.

Investors that seek pure-play access to lithium through companies that are upstream in the supply chain. Lithium miners may be well positioned to benefit from increased investment in the energy storage sector.

“Pure play" means that the companies in an ETF derive a significant portion of their revenue or assets from the targeted commodity or industry, rather than being diversified businesses with only incidental exposure. Pure-play investing helps ensure investors have meaningful exposure to the commodity or theme they are targeting, rather than owning diversified companies whose performance is driven by unrelated businesses. More focused exposure may allow the portfolio to better reflect the underlying investment thesis and more closely track a particular material or theme.

Upstream companies are generally the miners, developers and producers of lithium. These companies sit at the beginning of the supply chain and provide the raw materials needed by downstream manufacturers.

If demand for lithium increases, the companies extracting and producing it may be among the first beneficiaries of increased spending and investment throughout the supply chain.

Sprott focuses on those upstream producers rather than end-users of the material.

Demand for Lithium Is Increasing. Fueled by EV adoption and clean energy storage, demand growth for lithium-ion batteries is expected to reach an annual rate of 19% for the rest of the decade⁴.

Global Electric Vehicle Adoption. Lithium-ion batteries charge quickly, are long lasting and have high energy density, which allows for more power in a lighter package and makes these batteries essential for use in EVs. Electric vehicles are the largest consumers of lithium, and accordingly, clean energy demand for this critical mineral may increase 13 times by 2050, relative to 2024⁴. Lithium is also used in batteries across the spectrum of electronics and energy storage.

Battery Energy Storage Systems (BESS). As electricity demand grows and renewable energy, electrification, AI and data centers continue to expand, battery energy storage systems (BESS) are becoming increasingly important for maintaining grid reliability and supporting renewable energy integration.

Supply Risks. Lithium supply risks support the long-term case for lithium and lithium miners. Concentrated production, processing bottlenecks and rising demand could make securing future lithium supply increasingly challenging.

Strategic Importance. Lithium miners, producers and explorers have received increased investments from Western governments and automakers that are securing onshore sources of materials to optimize the battery supply chain.

Critical materials are naturally occurring metals and minerals that are essential to the generation, transmission and storage of energy. Sprott focuses on uranium, silver and rare earths as energy generation materials; copper as an energy transmission material; and lithium, nickel, manganese, cobalt and graphite as the battery materials crucial to energy storage.

Currently, Investors have Limited Choices

LITP is the only ETF providing pure-play exposure to lithium miners that supply a critical material essential to energy storage.

Investing in Individual Companies that Mine Lithium Poses Challenges

Many mining companies are domiciled in foreign countries, have small market capitalizations, are volatile and may have limited liquidity, making individual equity investing more challenging for some investors. The Sprott Lithium Miners ETF offers investors a convenient vehicle to access miners that supply this critical material along with company diversification.

Existing Commodity Funds have Limited Exposure to Lithium Miners

Most ETFs focused on the lithium sector provide exposure to companies that are end users of lithium, such as electric vehicle manufacturers, or companies that only devote a small portion of their revenue/operations to this critical material. What sets LITP apart is the index's comprehensive selection process, which identifies pure-play upstream companies that may be well positioned to benefit from increased investment in this critical material.

Sprott Asset Management USA, Inc. is the investment adviser to the Sprott Lithium Miners ETF. ALPS Advisors, Inc. is the sub-adviser, and ALPS Fund Services, Inc. serves as the administrator. ALPS Distributors, Inc. is the Distributor for the Sprott Lithium Miners ETF and is a registered broker-dealer and FINRA Member. Additionally, State Street Bank and Trust Company serves as the custodian and transfer agent.

The Sprott Lithium Miners ETF expects to declare and distribute all its net investment income, if any, to shareholders as dividends at least annually and on a pro-rata basis. The Fund may distribute such income dividends and capital gains more frequently, if necessary, to reduce or eliminate federal excise or income taxes on the Fund.

Please reach out to your Sprott representative at 888.622.1813 or criticalmaterials@sprott.com for additional questions.

¹Based on Morningstar’s universe of Natural Resources Sector Equity ETFs as of 6/30/2026.

² The term “pure-play” relates directly to the exposure that the Fund has to the total universe of investable, publicly listed securities in the investment strategy.

³The intensity score for stocks with revenue and for which revenue is deemed to be an appropriate characteristic is the percentage of their revenue attributable to the aforementioned strategy of the index.

⁴Source: “Global Critical Minerals Outlook 2025”, International Energy Agency (IEA), May 2025. Data shown for Net Zero Emissions Scenario.