The search for battery stocks to buy is on. With the Biden Administration increasingly pushing the development of new battery technologies and electric vehicles, the surge in investment in this sector will likely be unparalleled for some time.
Indeed, the electrification of U.S. roads will require massive investments in infrastructure. Whether we’re talking about charging stations around the country or battery storage, it’s clear that more EVs on the road will stress the country’s existing battery supply chain.
For investors, this poses an intriguing opportunity. Many think we’re headed into a recession right now. With supply chains still dislocated, it’s unclear how many commoditized parts of the market will respond in a lower-demand scenario. Thus, many investors will likely turn to areas of the economy less likely to be impacted by macro headwinds.
Given Biden’s support for the EV and battery sectors via his Inflation Reduction Act, this is likely to be a space that investors will want to watch. Among the top battery stocks to buy are these three companies I think are worth a look at these lower levels.
| QS | QuantumScape | $7.83 |
| SLDP | Solid Power | $5.08 |
| LAC | Lithium Americas | $25.34 |
QuantumScape (QS)
A leader in innovation in the battery space, QuantumScape (NYSE:QS) is among the top battery stocks to buy for many investors. This is a company on the cutting edge of the battery technology space, working on what’s known as solid-state batteries.
The whole idea around solid-state batteries is relatively simple. Traditional batteries have what’s known as a battery electrolyte solution inside. This solution helps to pass ions between the cathode and anode of the battery. Solid-state batteries look to remove this electrolyte solution, resulting in a denser, more energy-efficient battery.
These batteries, which have been produced in lab settings but have yet to be commercialized, promise faster charging times and can hold more charge. Basically, on nearly every metric, they’re better. Accordingly, for the electrified future, this is the sort of technology many want to invest in.
Right now, QuantumScape is among the leaders in R&D in this space. And while there’s another solid-state battery player on this list, this technology is worth exploring.
Solid Power (SLDP)
Another more speculative bet on this list of battery stocks to buy is Solid Power (NASDAQ:SLDP). With a market capitalization under $1 billion at the time of writing, this is a company many may view as more of a startup than an established company.
In many ways, Solid Power’s business model is similar to QuantumScape. This is a company looking to commercialize solid-state batteries. Accordingly, one may wonder why this stock is worth a look if QuantumScape is leading the pack.
Well, Solid Power’s backers are impressive. The company touts Ford (NYSE:F) and BMW (OTCMKTS:BMWYY) as the companies that have invested in its technology. Additionally, the company also recently completed its pilot production line. As a result, Solid Power is a fair and strong competitor to QuantumScape.
Solid Powers aims to start to churn out revenues by the end of the year. The company currently has a capacity of 30 metric tons. However, it plans on generating 6,000 metric tons of batteries by 2024. This means the company could be powering 100,000 EVs in 2024 alone.
With such commitments, investors are likely to be driven toward this stock. Accordingly, this is a stock with the potential to boom, especially given this bullish political backdrop for the sector right now.
Lithium Americas (LAC)
A Canada-based lithium mining company, Lithium Americas (NYSE:LAC), may not be the first choice for many investors in terms of battery stocks to buy. That said, this is a company with significant U.S. exposure via its Nevada mine and another mine in Argentina.
As demand for batteries surges over time, lithium (a key component in lithium-ion batteries) will likely continue to increase. Furthermore, domestic U.S. lithium production will likely become increasingly important, given the current geopolitical landscape.
Lithium mining is likely to remain in focus for this reason, whether it’s the Biden Administration or another administration down the road. Accordingly, from a geopolitical standpoint, Lithium America’s Thacker Pass in Nevada will play a significant role in shaping the domestic battery supply chain for years and decades into the future. This is the largest lithium resource in the U.S., making this mine’s growth prospects among the best in the sector.
On the date of publication, Chris MacDonald 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.
