With the transition to clean energy running in full gear, the minerals and metals powering the EV battery supply chain are in focus.

While the lithium sector has remained popular with investors, Nickel plays a crucial role as a key element in the rechargeable batteries utilized in hybrid and electric vehicles, as well as clean energy storage solutions. Increasing the nickel content in electric vehicle batteries extends their range.

Sprott Nickel Miners ETF (NASDAQ:NIKL) tracks 28 nickel mining companies and corresponds to the total return performance of the Nasdaq-listed Sprott Nickel Miners Index. NIKL is the only pure-play ETF focusing on nickel miners, who will be critical in supplying the mineral, which is essential to EV batteries and clean energy infrastructure.

The three largest holdings within NIKL are Nickel Industries Ltd, weighted at 12.56%, Vale SA (NYSE:VALE), weighted at 10.33% and IGO Ltd, which is weighted at 10.32%.

Vale, which supplies nickel to Tesla, Inc (NASDAQ:TSLA) and General Motors Company (NYSE:GM), plans to sell a 10% stake in its base metals business. On July 20, RBC Capital analyst Tyler Broda reiterated an Outperform rating on Vale and maintained a price target of $15 after increasing the price target from $13 in June.

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The NIKL Chart: NIKL was dropping about 1.4% on Thursday, continuing in a downtrend that began after the ETF reached an all-time high of $23.19 on July 13. Within its downtrend, NIKL has made a series of lower highs and lower lows, with the most recent lower high formed on Wednesday at $21.91 and the most recent confirmed lower low printed at the $21.67 mark on Monday.