3 Battery Stocks to Buy and Hold for Staggering Returns


  • With the accelerating EV demand, these best battery stocks are worth wagering on for the long-haul.
  • Albemarle (ALB): UBS believes it is one of the “best growth opportunities in chemicals.”
  • Amplify Lithium & Battery Technology ETF (BATT): With an expense ratio of 0.6%, investors can essentially wager on a  100 stocks in the battery tech sphere.
  • Lithium Americas (LAC): Has two of the biggest assets in the lithium mining space.
Best battery stocks - 3 Battery Stocks to Buy and Hold for Staggering Returns

Source: Shutterstock

As the electric vehicle revolution surges ahead, the best battery stocks are under the spotlight.

These companies will power the future, in line with the proliferation of EV demand. The International Energy Agency predicts roughly one in five cars globally will be electric this year. This shift should supercharge the EV battery market.

In fact, Fortune Business Insights suggests that the global EV battery market is projected to leap from $37.9 billion in 2021 to a whopping $98.9 billion by 2029.

Consequently, investors seeking high-return battery stocks should take note. The best-performing battery stocks are not just about meeting the needs of the EV sector.

These businesses are addressing infrastructural needs across a range of industries. Therefore, battery stocks offer a level of predictability appealing to many investors.

Hence, the massive total addressable market suggests that the best battery stocks may have a long shelf life. These stocks offer investors an incredible opportunity to power up their portfolios.

ALB Albemarle $203.99
BATT Amplify Lithium & Battery Technology ETF $12.15
LAC Lithium Americas  $21.17

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
Source: IgorGolovniov/Shutterstock.com

Albemarle (NYSE:ALB) has established its presence as the world’s largest lithium producer for EV batteries.

Lithium prices rose strongly last year, which resulted in a landmark year for its business.

Despite its robust performance in 2022, ALB stock has shed more than 20% of its value in the past six months, revving up its engines for a potential comeback.

Albemarle is shifting gears and forging partnerships with automotive heavyweights. It recently signed a deal with automotive titan Ford to supply battery-grade lithium.

This agreement will effectively empower Ford to ramp up its EV production, driving up demand for lithium. The company is investing heavily in its future, pouring $1.3 billion into a new lithium hydroxide plant in South Carolina.

The facility could produce 50,000 metric tons of battery-grade lithium annually, powering up to 2.4 million EVs each year.

Wall Street analysts are noting these developments. BS upgraded ALB stock to a “buy” rating, dubbing it as one of the “best growth opportunity in chemicals.”

Amplify Lithium & Battery Technology ETF (BATT)

Blocks that spell out ETF in front of jar with money and change.
Source: SHUN_J / Shutterstock

Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) is arguably the least risky way to play the burgeoning lithium mining space. Investing in the BATT ETF allows investors access to various EV, battery, and technology securities.

With investments in over 100 stocks, and an expense ratio of just 0.6%, this ETF is a must-buy for long-term investors in the sector.

As lithium prices snap back from their lows in April, the BATT ETF is also gaining momentum. Over the years, it’s been a relatively impressive wealth compounder offering a 50% gain in the past three years.

It yields almost 4% and offers two consecutive years of dividend payments, which is way ahead of industry averages. Therefore, it’s an ideal time for investors looking to energize their portfolios with a stake in the BATT ETF.

Lithium Americas (LAC

smartphone with logo of Canadian company Lithium Americas Corp on screen
Source: Wirestock Creators / Shutterstock.com

Lithium Americas (NYSE:LAC) has burst onto the scene, quickly becoming a key player in lithium, emerging as a significantly undervalued stock worth considering.

It may kick-start production and remain on the brink of unlocking substantial value. For instance, the Thacker Pass mine boasts an after-tax net present value of $4.95 billion, potentially generating millions in new revenues for the firm.

Adding to the allure, Lithium Americas holds a 44.8% stake in the Cauchari-Olaroz asset in Argentina. This asset, with a lifespan of 40 years, could deliver an average annual EBITDA of $308 million.

Lithium Americas has agreed to split its Argentine and North American units into two separate entities. Hence, with these developments on the horizon, Lithium Americas is certainly one of the best stocks to watch in the battery space.

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.

Article printed from InvestorPlace Media, https://investorplace.com/2023/05/3-battery-stocks-to-buy-and-hold-for-staggering-returns/.

©2024 InvestorPlace Media, LLC