The battery industry has been experiencing rapid growth in recent years, with investors worldwide noticing. The demand for batteries is only rising as they become increasingly popular in electric vehicles (EVs), cloud computing, charging devices, and others. The booming EV sector will be the biggest growth driver for battery stocks as we advance.
According to Market Research Future, the EV battery market will be worth $192.29 billion by 2030, with an incredible growth rate of 33.7% from 2022 to 2030. The world’s battery economy will restructure age-old supply chains, making battery stocks one of the most lucrative investment options.
Billions are being spent on improving battery durability, power capabilities, portability, charge times, and safety. Moreover, EV batteries, in particular, come in different sizes and chemistries, which have a major impact on performance.
With that being said, let’s look at three needle-movers in the sector, which continue to perform impressively.
Battery Stocks To Buy: Nio (NIO)
Chinese EV giant Nio has been building battery charging and swap stations in its domestic market at a rampant pace.
Additionally, it plans to expand into Europe with its foray into the Norwegian market. Moreover, it operates it’s novel “battery-as-a-service” program, which has become highly popular in the Chinese market. Hence, its investments in batteries have complimented the rapid growth in its EV sales and will continue boosting NIO stock.
Nio has built over 500 swap stations so far, and there have been 5.3 million swaps already. Its battery-swap technology lets car owners get a fully charged battery in roughly three minutes. It will be working with Shell (NYSE:RDS-A, NYSE:RDS-B) to build new stations in Europe next year and install 100 new swapping stations in China within the next four years. Throw in its BaaS option, and you’re looking at a massive revenue contribution from its battery business which will only grow over time.
QuantumScape is one of the most promising EV battery stocks in the market. The company is developing solid-state batteries, which are considered the Holy Grail of EV batteries.
Though several companies are in this race, QuantumScape presents the most promising solution. It has had an incredible 2021, achieving its milestones ahead of schedule, making QS stock a spectacular bet for next year.
QuantumScape has made some unbelievable strides this year. Perhaps the most impressive was its 10-layer cell, which has exhibited a whopping 80% energy retention at 25° Celsius after 800 cycles. No other competitor has come close to achieving such a feat so far.
On top of that, it boasts a remarkable liquidity position of $1.3 billion, which is outstanding if we look at its $250 million cash burn rate this year. Therefore, it’s on course to commercialize solid-state batteries and solidify its position as an industry stalwart
Battery Stocks To Buy: Albemarle (ALB)
Albemarle is the largest lithium producer globally. Though it operates a diversified business, lithium represents 41% of its total revenues and the best growth prospects.
Naturally, the demand for its lithium products will grow in line with EV demand. Moreover, the company has invested heavily to expand its productive capacity in its mines in Chile and Australia.
The company looks set for strong long-term growth ahead, given its lofty goals for 2026. It expects to deliver sales between $6 billion to $7 billion, representing a massive bump from its 2021 revenues of roughly $3.2 billion.
Moreover, it also expects its EBITDA to fall between $2 billion to $3 billion, representing a three-fold increase from this year. Therefore, there is plenty to look forward to with Albemarle and its operations in the coming years.
On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.