Battery Stocks : The auto industry is shifting to electric. Each major carmaker has been making or has already begun offering electric cars (EVs). Tesla (NASDAQ:TSLA) is an leader in the field. Today, Ford (NYSE:F), General Motors (NYSE:GM), Volkswagen (OTC:VWAGY), Daimler (ETR:DAI) and other car manufacturers are moving forward by implementing plans to take advantage of the rising demand of consumers for electric vehicles.
GM is planning to sell 400 000 EVs by 2023. Ford estimates that 50 percent of its sales will be EVs before the year’s end. Volkswagen’s strategy is more ambitious. It plans to achieve 70 percent of EV sales in Europe and 55 percent of sales in U.S. by 2030. Even with the uncertainty of the conflict in Ukraine the Mercedes-Benz manufacturer Daimler will keep with its EUR40 billion investments in electric cars for the next decade. Daimler plans to make the entire range of new vehicles to be entirely electric in 2025.
Making a direct investment in the stocks of electric vehicles is a way to make money from this massive change. Another option is to invest in companies that manufacture battery, one of among the most crucial and expensive component in electric vehicle. If the number of electric vehicles produced grows in the coming decade then the demand for electric vehicle batteries will also increase.
Major battery producers are investing to help meet the growing EV batteries demand. In addition, start-ups in battery technology (some among them planning to go to the public market through SPAC consolidations) are creating new kinds of energy storage that could change the way we use batteries. It’s a great moment to look into investing in EV batteries.
Best battery stocks of electric vehicles
These are the best EV battery stocks that investors should consider:
| COMPANY | MARKET CAPITALIZATION | DESCRIPTION |
|---|---|---|
| BYD (OTC:BYDD.F) | $72 billion | Vertically integrated manufacturer of EVs and their components, including batteries. |
| Albemarle (NYSE:ALB) | $30 billion | A leading manufacturer of lithium-based batteries. |
| Panasonic (OTC:PCRFY) | $16 billion | A Japanese conglomerate that supplies batteries to Tesla. |
| QuantumScape (NYSE:QS) | $3.4 billion | An early stage company that develops batteries that are made of solid-state. |
| Microvast (NASDAQ:MVST) | $655 million | Designer, developer and producer batteries made of lithium-ion. |
| FREYR (NYSE:FREY) | $1.4 billion | Another company in the early stages of development creating battery factories. |
| Solid Power (NASDAQ:SLDP) | $872 million | A company is developing solid-state battery technology. |
BYD
BYD is an integrated electric vehicle business based in China and is among the most valuable automotive manufacturers. It produces and sells battery-powered hybrid vehicles buses, trucks and monorails. Additionally, it manufactures the batteries, semiconductors as well as other components for its EVs.
One of the factors that make BYD distinguish itself in the EV sector is the fact the fact that Warren Buffett is a major shareholder. His Berkshire Hathaway (NYSE:BRK.A)(NYSE:BRK.B) first bought shares of the battery and EV company in 2008. Buffett reduced Berkshire’s stake in BYD in the month of September 2022, but owned 18.9 percent of the shares in circulation which was valued at more than $5.3 billion at the time.
Albemarle
Albemarle is among the world’s leading makers of lithium — which is an essential ingredient in the majority of electric vehicles. It is the company is a mining, base and mineral materials company has focused its efforts on lithium in recent years.
To meet the increasing demand for battery-grade lithium Albemarle is working hard to develop a variety of plans to meet the growing demand for lithium in Chile, Australia, and China. In conjunction with the rising cost of lithium itself, the increase in capacity for production has caused Albemarle to increase its financial forecast multiple times over the last year. Albemarle is forecasting growth in revenue between 115% and 125 percent and EBITDA growth of 270%-300 percentage for the fiscal year 2022.
Panasonic
Japanese company Panasonic is a major manufacturer of electric vehicle batteries. It has been a supplier and partner of Tesla for several years. The two companies initially agreed to a supply deal in 2009. In spite of Panasonic not being the sole supplier of Tesla’s battery however, they continue to manufacture a large amount of battery packs for the electric automaker through the “gigafactory” joint venture.
Panasonic has co-located the North American battery production facility in Nevada along with Tesla’s gigantic Gigafactory 1. It expanded it in 2021, by constructing an additional production line. In 2022, it announced plans to construct a second manufacturing facility in Kansas and is now looking into the possibility of a second manufacturing facility within the U.S. The company is also expanding production capacity to its Japanese factory for EV batteries. The company produces a variety of EV batteries and is putting in new production equipment in order to meet the demand of Tesla for bigger batteries.
