Forever battery stocks should be a part of your portfolio. After all, solid-state batteries, or the “forever battery,” could be a game-changer.
According to InvestorPlace contributor Luke Lango,
“…they represent one of the most promising technological breakthroughs on the 2020s. Solid-state batteries could be the key to making our phones sustain power for days… enabling our smartwatches to fully charge in seconds… and, yes, allowing electric cars to drive for thousands of miles without needing to recharge.”
The liquid electrolyte solution in conventional batteries is compressed into a solid, hence the name, solid-state. Down the road, this potential alternative to lithium-ion batteries could help improve vehicle range, speed up charging times, and cut the risk of a potential fire.
Granted, you can’t drive a solid-state battery EV just yet, but major automakers are ready to test them. Nissan (OTCMKTS:NSANY), for example, is projecting the use of solid-state batteries in its EVs by 2028. BMW reportedly wants to test solid-state batteries, too. Even Toyota (NYSE:TM) – which reportedly has 1,300 patents related to solid-state batteries, has plans to launch a hybrid in 2025.
And if the “forever battery” finds success, you may even find them in trains, planes, trucks, and just about everywhere. Again, if successful, it could be a massive game-changer for industries and perhaps even for your portfolio.
QuantumScape (NYSE:QS) could be one of the most exciting forever battery stocks on the market. At the moment, QS trades at just $7.30 a share. But if it holds the potential that Luke Lango says it has, it could double, if not triple, with patience.
“Just last quarter, the company started shipping prototypes to auto makers, and early indications are that they’re working. In other words, QuantumScape appears to have ‘cracked the code.’ It seems it’s made a solid-state that will work in a car. Within a few years, QuantumScape should be commercializing those next-gen EV batteries – and printing billions of dollars in profits,” he says.
Even better, the company’s battery could give EVs a driving range of 400 miles and reduce the time needed to charge a battery to just 15 minutes. That’s a game-changer.
Solid Power (SLDP)
Forever battery stocks like Solid Power (NASDAQ:SLDP) are headed higher, too. For one, the U.S. Department of Energy just awarded the company over $5 million to develop its technology, “which could significantly help lower the price of EV batteries,” according to Electrek.com.
Also, just last year, the company said it would co-develop its solid-state technology with BMW (OTCMKTS:BMWYY), which should help accelerate the project. Even better, it initiated an EV cell pilot line. The company will be delivering EV cells to automotive partners in the first half of 2023 for testing.
Better, Needham analyst Chris Pierce sees a bright future ahead for SLDP. “We view SLDP as a well-funded call option on the future of solid state batteries in electric vehicles,” Pierce wrote. “The potential advantages of solid state battery technology over current Lithium-ion battery technology are readily apparent,” he said. The analyst also has a buy rating with a $5 price target.
iShares Self Driving EV and Tech ETF (IDRV)
One of the best ways to diversify at a low cost is with an ETF, such as the iShares Self Driving EV and Tech ETF (NYSEARCA:IDRV). With an expense ratio of 0.47%, the IDRV ETF gives me access to 59 EV-related stocks, such as Li Auto (NASDAQ:LI), Aptiv (NYSE:APTV), BYD Ltd. (OTCMKTS:BYDDF), Tesla (NASDAQ:TSLA), Samsung (OTCMKTS:SSNLF), Ganfeng Lithium (OTCMKTS:GNENF), QuantumScape, ChargePoint Holdings (NYSE:CHPT), and dozens more. IDRV tracks growth and innovation in and around electric vehicles, battery technologies, and autonomous driving technologies.
Global X Lithium & Battery Tech ETF (LIT)
Or, if you’re looking for broader exposure to the battery market, you can always pick up the Global X Lithium & Battery Tech ETF (NYSEARCA:LIT), which invests in the full lithium cycle. Some of the ETF’s top holdings include Albemarle (NYSE:ALB), BYD Co., Tesla, LG Chem Ltd. (OTCMKTS:LGCLF), Livent Corporation (NYSE:LTHM), and dozens more, offering solid diversification among top lithium and battery tech names.
It also holds QuantumScape, which “is on a mission to transform energy storage with solid-state lithium-metal battery technology. The company’s next-generation batteries are designed to enable greater energy density, faster charging and enhanced safety to support the transition away from legacy energy sources toward a lower carbon future.”
By 2025, Nissan plans to have a pilot solid-state battery plant up and running, according to AutoCar.co.uk. It then wants to have completed engineering on the technology by 2026 and potential mass production by 2028. Even more exciting, the company works with scientists and the University of Oxford to develop the technology. The company also noted that its solid-state technology was all “solid-state,” removing all liquid elements.
David Moss, Nissan’s senior vice president for research and development in Europe, said: “We think we have something quite special and are in a group leading the technology. We want to get the cost down [compared with lithium ion batteries] by 50%, to double the energy density and to offer three times the charging speed,” as quoted by Autoblog.
BMW is trying to speed up the development of solid-state batteries by manufacturing prototype cells in its partnership with Solid Power. The automaker expects to start producing cells in the first half of the year, with a goal of testing in a vehicle before 2025.
Under the terms of the agreement, BMW will have access to Solid Power’s battery research and development, cell design, and manufacturing expertise. “By gaining a license to Solid Power’s research and development, cell design, and manufacturing practices, BMW Group intends to duplicate Solid Power’s pilot production line at its own facility in Germany in order to produce prototype batteries cells of its own,” as noted by Electrek.co.
On the date of publication, Ian Cooper did not have (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Consumer Discretionary, Automotive, Battery, Electric Vehicles, Industrial, Lithium, Energy, Renewable Energy, Technology