Editor’s note: “3 Quantum Glass Battery Stocks That Could Surge” was previously published in July 2020. It has since been updated to include the most relevant information available.
Quantum glass batteries, often referred to simply as “glass batteries,” represent the next frontier in electric vehicles. Called the “forever battery” and the “holy grail,” glass batteries are expected to solve the two most pressing problems that have kept electric vehicles from being widely adopted by the public – limited battery life and slow charging times. For investors, there are quantum glass battery stocks to watch.
The glass battery is a type of solid-state battery. It uses glass electrolyte and lithium or sodium metal electrodes. The battery was invented by John Goodenough, a Nobel Prize winning scientist and professor at the University of Texas at Austin.
He contributed to the development of the lithium-ion battery widely used in electric vehicles today. Glass batteries are believed to last much longer than standard lithium-ion batteries. And the time needed to recharge them is expected to take a few minutes rather than several hours.
Tesla (NASDAQ:TSLA), the world’s leading electric vehicle manufacturer, is reported to be exploring the technology as it strives to develop what Chief Executive Officer Elon Musk calls a “million mile battery.”
At its Battery Day event this September, Musk talked about Tesla’s plans to make the battery and what it means for the industry. Solving the battery life problem will bring the cost of electric cars to $100 per kilowatt hour, which makes them less expensive to run than internal combustion engine cars. Cars plugged into the grid still have an electric expense.
Here are three quantum glass battery stocks (other than Tesla) that could surge as quantum glass batteries become a reality and propel the electric vehicle market forward:
Quantum Glass Battery Stocks: Panasonic (PCRFY)
Panasonic’s share price has been beat up in recent years, falling from its 2018 price around $16 to below $10 today. The company, which has been around since 1918, may seem like an old name when it comes to batteries. But Panasonic is taking steps to be at the forefront of the current revolution with batteries and electric vehicles.
Case in point, Panasonic entered into a three year deal with Tesla to manufacture and supply 2170 lithium-ion battery cells to Tesla’s Gigafactory located in Nevada. Panasonic’s deal with Tesla runs until March 31, 2023, and Panasonic has made clear that it hopes to extend the strategic relationship.
Discussions are underway between the two companies to further expand the production of batteries and power trains at the Nevada facility.
Tesla isn’t the only company Panasonic is working with on batteries for electric vehicles. The company has also partnered with Toyota to manufacture electric vehicle batteries.
The goal is to raise the battery capacity 50 times higher than what is currently available in Toyota gas/electric hybrid vehicles. Mazda, Subaru and Honda also have agreements in place to use Panasonic batteries in their upcoming electric vehicles. There are currently three “buy” ratings, 11 “hold” ratings and one “sell” rating on Panasonic stock.
Next we come to Albemarle, which is the world leader in lithium mining and accounts for 21% of global lithium production with brine recovery fields and chemical processing plants in Chile and Nevada.
Lithium is the central ingredient in the lithium-ion batteries that power electric vehicles, and are likely to continue to do so even with the development of glass batteries. As demand for lithium rises and prices for the commodity increase, Albemarle’s earnings and its stock price are likely to follow suit.
Investors should note that, like most commodity stocks, ALB experiences extreme price moves. In the past five years, ALB stock has fluctuated from a low of $42,00 per share to as high as $140.78 a share. The stock is currently trading at about $87 after bottoming at $52.70 in early March.
Patient investors should be rewarded in coming years as the company forecasts that lithium demand will increase 25% each year through 2030 as more automakers develop fully electric vehicles. The company also just announced a dividend of 39 cents per share, which equates to an annualized dividend of $1.54.
The dividend is payable to shareholders on Oct. 1. Albemarle has increased its dividend every year for the last 16 years, for a total increase of 635%. Among analysts who cover Albemarle, there are currently five “buy,” 12 “hold” and three “sell” ratings on the company’s stock.
Samsung may not be the first name that comes to mind when one thinks of batteries for electric vehicles.
The South Korean electronics manufacturer has announced some major breakthroughs with batteries. In March of this year, the company said it developed solid-state batteries that can enable an electric vehicle to travel 500 miles on a single charge, and can be recharged more than 1,000 times.
Essentially, Samsung created electric vehicle batteries that can last 500,000 miles. This was heralded as a major breakthrough for the emerging EV market.
While it still might be several years before solid-state and glass batteries are widely used, Samsung has partnered with automaker Hyundai (OTCMKTS:HYMTF)) to continue developing long-range vehicle batteries. Samsung could become a major player in next level quantum glass batteries.
Shares of Samsung have been on a run since falling along with the broader market in March. But at $53,800 Korean Won (KRW), the stock is still off its 52-week high of $62,800 KRW. Other parts of the company’s business that will buoy the stock price include cell phones, semiconductors, televisions and printers. Batteries are clearly a focus for Samsung’s research and development division and the company could see a big revenue boost from electric vehicle batteries in coming years.
Joel Baglole has been a business journalist for 20 years. He spent five years as a staff reporter at The Wall Street Journal, and has also written for The Washington Post and Toronto Star newspapers, as well as financial websites such as The Motley Fool and Investopedia. As of this writing, Joel Baglole did not hold shares in any of the aforementioned companies.