ETF Securities has said it has no plans to add an index-tracking lithium product to its range, despite market whispers to the contrary.

Scott Thompson, co-head of European sales at ETF Securities, said people were talking about the metal as a separate asset class, but it would not be reacting with a product launch.

He said, ‘It’s something that is talked about although it’s such a small market that you can’t put [any] significant investment into it. For the time being, we don’t see a huge demand from our client base.’

He said interest in the products was being raised by institutional investors, highlighting the growing demand for industrial metals ETCs’.

The ETP provider already has a wide range of products tracking industrial & precious metals, as well as other commodities.

Lithium is a core element for the batteries powering smart phones, PC tablets and the hugely popular iPods and iPads.

US ETP provider Global X Funds launched the first such fund on to the New York Stock Exchange last year with the Global X Lithium ETF and as at 17 March 2011 had net assets of US $174 million.

The product tracks the Solactive Global Lithium index made up of lithium-related equities such as lithium battery producing and mining and refining companies, such as Sociedad Química y Minera de Chile, FMC Corporation, and Avalon Rare Metals.

South American countries are among the biggest producers of the lithium ore concentrate, with the United States the biggest importer of the metal.

According to iShares, investment in Lithium exchange-traded products reached $100 million during 2010 - the first period available for comparison.

Information provider Research and Markets said lithium prices had tripled over the past decade, but had fallen off in recent months.