The Top 10 EV Battery Stocks To Invest In
Traditional cars run on fuel, something that’s controversial, to say the least. Whether gas or diesel, there’s no denying that the amount of CO2 produced by cars daily has left a serious impact on the environment. Moreover, with growing gas prices thanks to the ever-changing political atmosphere, traditional cars are quickly becoming luxury items.
Those are some of the main reasons why nations all over the world are making a push toward electric vehicles (EV), incentivizing the creation of cheaper, faster models for mass production.
Any investor worth his or her salt would know that capitalizing on the stocks of this emerging industry early on can pay dividends in the future. This logic also extends to the production of the batteries on which EVs run.
With analysts projecting the global EV battery market to grow at a CAGR of 28.1% from $27.3 billion in 2021 to $154.9 billion in 2028, it’s wise to buy the stock now while they’re relatively cheap and reap the rewards later on at the boom.
So, to help you with this, here is a list of the top 10 EV battery stocks to invest in this year:
1. Panasonic Corporation (OTC: PCRFY)
Market cap: $20.33 Billion
Who in this great wide world has not heard of Panasonic? The Japanese electronics giant not
only produces a lot of the household electronics we enjoy today, but it is also one of the world’s leading producers of EV batteries. The company is the notable supplier of EV batteries to Tesla, the world’s largest producer of luxury electric cars as of late. On the horizon, the company hopes to produce cheaper models of battery that will allow Tesla to drive down the cost of EVs.
On top of that, the Panasonic Corporation owns 49% of a joint venture with the Toyota Motor Corporation which develops lithium-ion prismatic batteries.
All these moving parts paved the way for a very fruitful 2022 for the company. Panasonic saw a 28% year-over-year increase in revenue in its automotive segment by the end of the second quarter of fiscal 2022. This is likely driven by a recovery in automotive products and higher sales of automotive batteries in response to rising demand.
Related: Top 10 Lithium Stocks
2. Contemporary Amperex Technology Co., Limited (SHE: 300750)
Market cap: $1.03 Trillion
With control of 26% of the global EV battery market, it’s almost a no-brainer to invest in the stocks of this company. The Chinese company produces and markets its battering to some of the biggest global automakers including Tesla, Inc., Volkswagen AG, and Bayerische Motoren Werke Aktiengesellschaft.
Other than supplying batteries to cars for the general public, the company also produces batteries for electric light trucks, forklifts, garbage trucks, and minivans.
In 2022, Contemporary Amperex Technology reported net profits of 3.27 billion yuan and a revenue increase of 130.7% year-on-year in the third quarter.
3. Solid Power Inc. (NASDAQ: SLDP)
Market cap: $1.09 Billion
On the heels of a merger with Decarbonization Plus Acquisition Corp III, the Colorado-based solid-state battery maker saw share gains of 14% at the end of 2021. This, along with support from companies like Ford Motor Company, Bayerische Motoren Werke Aktiengesellschaft, and Volta Energy Technologies, means this young company is well-positioned to grow rapidly in the years to come.
Much of the interest around the company centers on its development of low-cost all-solid-state battery cell technology that gives EVs longer battery life.
4. Lithium Americas Corp. (NYSE: LAC)
Market cap: 3.53 Billion Canadian Dollars
This Canada-based company deals with the mining and exploration of lithium, a key component of EV batteries. This makes it one of the most sought-after investments for those interested in the growing EV market.
The company has started expanding its lithium operations in Argentina, where its Cauchari-Olaroz project is set to begin production this year with a capacity of 40,000 tonnes per year. Such promising developments have allowed the stock of this company to go up 75% over the last six months.
5. Romeo Power, Inc. (NYSE: RMO)
Market cap: $83.61 Million
This company is a California-based manufacturer of lithium-ion battery modules and packs for commercial EVs. The company also provides engineering solutions to electric vehicle manufacturers and one of its major clients of this company is the Washington-based truck maker PACCAR Inc.
Where most investors might be looking at stocks of companies making EV batteries for consumer cars, one sector that’s overlooked is the construction business. It is obvious though that EVs can make a big impact here as well.
Romeo Power has thrived in this sector of the economy, reporting 20% gains on their shares following solid Q3 earnings. In the third quarter of 2021, the company’s revenue grew 747% year-over-year to $5.76 million and beat revenue estimates by $2.6 million.
And although the company still has a long way to go to be considered a sustainable option for investors, there’s no better company to bet on for the electric future of the construction industry.
6. FREYR Battery (NYSE: FREY)
Market cap: $809.79 Million
This company is a Norwegian EV company that commercializes environmentally friendly and low-cost battery cells for electric vehicles, buses, marine vessels, and trucks. And to diversify its portfolio, the company also offers energy storage systems.
The company has recently begun construction of the Customer Qualification Plant (CQP) and the first battery cell production line in Mo I Rana, Norway. The plant is scheduled to launch in the second half of 2022.
In August of last year, the company was finally listed on the New York Stock Exchange and quickly raised an estimated $850 million. By the beginning of 2022, the company was in discussions with an additional 85 prospective customers.
7. Microvast Holdings, Inc. (NASDAQ: MVST)
Market cap: $754.83 Million
As important battery manufacturers are, the companies that charge those batteries are just as important. This Texas-based company makes fast-charging battery systems for everything from passenger and commercial electric vehicles to heavy-duty trucks and railways. In addition, the company also produces energy storage systems and battery backup units for data centers.
In November of last year, the company came into possession of a 75,000-square feet facility that will become its battery prototyping headquarters.
Microvast Holdings benefited greatly from the rise in demand for EVs, reporting revenue increases of 20% year-over-year. That’s an additional $36.9 million in the third quarter of 2021 which was likely fueled by higher sales of battery products to new and current customers.
8. QuantumScape Corporation (NYSE: QS)
Market cap: $3.76 Billion
Another company that produces solid-state lithium-metal batteries, this Californian startup is backed by automobile-making giants like Volkswagen AG.
Although there’s a lot the company still has to do to prove itself to investors, it's attracting a lot of attention from customers. Several hedge funds have taken a bullish stance on the shares of this company with the total value of these stakes being $197 million.
If you feel like taking a chance on a company that’s up-and-coming, then this is as good a chance as any.
9. NIO Inc. (NYSE: NIO)
Market cap: $28.78 Billion
One of the pioneers of the EV industry, the Shanghai-based company was the first to offer battery-as-a-service to EV owners. Since its introduction of the NIO Power Swap Station 2.0, a drive stop where EV owners can get a fresh battery pack installed in about five minutes, the EV manufacturer has now deployed a total of 517 battery swap stations across China.
NIO Inc. intends to build 4,000 battery swap stations in China by 2025, with 1,000 of them deployed internationally, further hastening the conversion of many markets towards electric-powered vehicles.
The company’s revenue grew by 116.6% year-over-year, and its gross margin in the third quarter of 2021 grew to 20.3% from 12.9% in 2020.
10. Albemarle Corporation (NYSE: ALB)
Market cap: $26.38 Billion
Although the company does not manufacture EV batteries, the North Carolina-based company is one of the biggest lithium suppliers in the world. This means that it's at the very heart and pulse of the EV industry. With operations in Chile, Australia, and the US, Albemarle has expanded production in China following an acquisition of a Chinese lithium converter firm.
The factory manufactures battery-grade lithium carbonate and lithium hydroxide, with an annual capacity of 25,000 metric tons of lithium carbonate equivalent.
An increase in demand, coupled with rising lithium prices, has allowed this company to report revenue growth of 35% year-on-year by the end of 2021.
And that was our list of the top 10 EV battery stocks to invest in this year. And even though there are no guarantees in the stock market, it's safe to assume that the EV battery industry is likely to grow exponentially in the coming years.
If you play your cards right and practice your due diligence, then you can land yourself electric, renewable, and eco-friendly profits for many years to come.