In an era where we are in a technological evolution and constant development of alternative energy generation, battery companies play a fundamental role within the whole sector and the development of humanity. Lithium is a mineral that plays a fundamental role in the sustainability of our society and most battery companies know how to make the most of it. Every moment we will meet new companies that operate within this sector and without a doubt this represents a great opportunity as investors when it comes to obtaining substantial returns, since it is a growing sector we can take advantage of new technological and innovative developments that these companies seek to run day after day. Here I bring you 3 strong buy battery stocks that are worth taking into account.
Lithium Americas (LAC)
Lithium Americas Corp. (NYSE:LAC) is a mining company focused primarily on the production of lithium, a crucial component used in the batteries of electric vehicles and other electronic devices. Its main projects include the Cauchari-Olaroz lithium project in Argentina and the Thacker Pass lithium project in Nevada (USA).
As demand for electric vehicles grows worldwide, companies such as LAC have become attractive investment options due to their involvement in lithium production. LAC’s recent completion of mechanical construction at the Cauchari-Olaroz project is a positive indicator, as the company targets its first lithium production in June 2023 and plans to ramp up production to 40,000 tons of battery-grade lithium carbonate in the first quarter of 2024.
In its latest financial report for the first quarter of 2023, it disclosed a quarterly loss per share of $0.04 (basic), which is an important financial metric for investors to consider when assessing the company’s profitability. Despite the loss, the company received a boost in the value of its U.S.-listed shares, which rose 3.6% to C$31 after the U.S. Department of the Interior removed a major obstacle to its Thacker Pass mining project.
The Department’s conclusion that nearly all of the deposit contains lithium used in electric vehicle batteries bolstered investor sentiment, leading to the stock’s best day in nearly two weeks. Prior to this update, the stock was already up 17.1% year-to-date, indicating growing investor confidence in the company’s prospects.
Sigma Lithium (SGML)
Meet Sigma Lithium Corporation (NASDAQ:SGML), a remarkable company with a clear focus on mining and producing lithium, the essential mineral-powering electric vehicles and energy storage systems. What sets them apart and appeals to investors is their unwavering dedication to sustainable and eco-friendly practices. Not only do they deliver top-notch, high-purity lithium, but they also take pride in their groundbreaking “Triple Zero Green Lithium” that’s not only carbon neutral but also free from harmful chemicals and toxic waste.
Choosing to invest in Sigma Lithium is a smart move in the battery sector, and here’s why, with the world embracing electric vehicles and renewable energy solutions, the demand for lithium is on the rise, which puts the company in a promising position for the future. Moreover, their focus on environmental responsibility and adherence to ESG considerations make them a favorite among investors who care about sustainability.
Speaking of their recent financial performance as of September 30, 2022, has reported impressive total assets of $197.56 million, marking a significant increase compared to the previous year. They hit a milestone by delivering 30,000 tons of lithium, dividing it into the groundbreaking Triple Zero Green Lithium and Triple Zero Green By-Products, thereby strengthening their foothold in the market.
Exciting news reveals that Sigma Lithium is pushing forward with its production plan, currently operating at around 75% of its capacity. They’ve achieved peak recoveries of 60% and are confidently moving towards their goal of a 65% recovery rate. Notably, they’ve been securing premium prices for their products, a positive sign that boosts their revenues and profitability.
QuantumScape (QS)
QuantumScape Corporation (NYSE:QS) is an amazing company dedicated to developing next-generation solid lithium-metal batteries for electric vehicles and other applications! Their innovative technology promises safer batteries with higher energy capacity, which could completely change the electric vehicle market and improve the user experience.
It recently released its financial results for the quarter ending in June. It missed by reporting an adjusted loss of 26 cents per share, against an initial estimates that called for a loss of 20 cents per share. This may explain why analysts’ average earnings forecasts had declined slightly over the past three months.
More importantly, in the last 30 days prior to the report, there were no negative revisions to earnings estimates, suggesting some stability in the company’s projections. It also performed well in the market, up 17.1% in the quarter and up an impressive 65.1% year-to-date (as of writing)!
As of this writing, Gabriel Osorio-Mazzilli did not hold (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.
