7 Millionaire-Maker Battery Stocks to Hold Through Thick and Thin

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  • Energize your portfolio with these best long-term battery stocks to buy
  • Albemarle (ALB): Dominates the lithium supply chain; with strategic partnerships positioning, it forecasted 20% to 30% growth in lithium sales through 2027.
  • Piedmont Lithium (PLL): Poised to be a lithium powerhouse with endeavors in North Carolina and Tennessee, aiming for an annual production of 60,000 metric tons of lithium hydroxide.
  • Lithium Americas (LAC): Owns assets with a $5.7 billion potential value, pointing to massive resource availability.
  • Keep reading for the best long-term battery stocks to buy!
Best Long-Term Battery Stocks - 7 Millionaire-Maker Battery Stocks to Hold Through Thick and Thin

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As the automotive industry shifts gears towards electrification, the spotlight is firmly on the best long-term battery stocks.

This transition has effectively generated considerable wealth, especially in battery stocks, and magnetizes investors globally. The automotive titans, once skeptical, are now passionately embracing electrification, recognizing the ground-breaking potential of EVs and the fast-evolving consumer preferences.

Hence, with an electric buzz across the EV supply chain and its bountiful opportunities, wagering on best long-term battery stocks could prove lucrative.

So, if you’re scouting for best long-term battery stocks to hold or contemplating a battery investment for the long run, the road ahead looks promising.

With projections suggesting that by 2030, a staggering 40% of new car sales will be EVs, it’s clear that the sector is poised for massive long-term expansion ahead.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
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Albemarle (NYSE:ALB) is one of the titans in the lithium space, and it’s not by mere chance. I

t boasts a key partnership with Ford Motor (NYSE:F), where it will supply over 100,000 metric tons of top-tier battery-grade lithium hydroxide starting in 2026. Exxon Mobil (NYSE:XOM) is reportedly in talks with ALB for its lithium venture, targeting 100,000 tons per year.

Tapping into the burgeoning EV landscape, Albemarle’s foresight positions it impressively in harnessing the sector’s tailwinds. The firm expects robust lithium sales growth at a CAGR of 20% to 30% through 2027 as a testament to its growth trajectory.

A glance at its recent performance reaffirms the bullish sentiment. Albemarle posted blow-out earnings in its second quarter, where its net income jumped to $650 million, a substantial leap from the prior year.

The 60% sales bump to $2.37 billion year-over-year indicates the firm’s meteoric rise. The company now sees net sales growth of 40% to 55%, with adjusted EBITDA projected to soar by 10% to 25% year-over-year.

Piedmont Lithium (PLL)

Person holding cellphone with logo of US mining company Piedmont Lithium Inc. (PLL) on screen in front of business webpage. Focus on phone display. Unmodified photo.
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Piedmont Lithium (NASDAQ:PLL) is a gem in the rough, with a recent correction offering a tantalizing window for investors looking to tap into potential windfalls.

The firm recently announced its first commercial shipment of spodumene concentrate from Quebec, a venture in which it holds a solid 25% stake. However, the enthusiasm doesn’t end there.

The company is aggressively channeling efforts to harness the potential of its North Carolina mine, projected to emerge as one of the region’s top lithium-producing behemoths. Coupled with that, it’s laying the foundations for a lithium hydroxide production hub in Tennessee.

Together, these ventures are poised to churn out a staggering 60,000 metric tons of lithium hydroxide each year.

With Piedmont having full ownership of these assets, valued at a combined net present value of a whopping $5 billion, and the addition of Carolina Lithium to the roster, the company’s revenue and cash flow trajectory in the coming half-decade look nothing short of stellar.

Lithium Americas (LAC)

smartphone with logo of Canadian company Lithium Americas Corp on screen
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Despite the recent downtrend, Lithium Americas (NYSE:LAC) is on the cusp of an exciting future.

The company’s Thacker Pass project is where the magic begins for LAC, with the mine boasting an impressive after-tax net present value of $5.7 billion. Throw in its Argentinian, Cauchari-Olaroz asset into the mix, and LAC becomes one of the most lucrative long-term lithium and battery plays trading at a hefty bargain.

Further sweetening the deal, the company got the green light from its shareholders to separate its North American and Argentinian assets, a maneuver set to unravel considerable long-term value.

The Thacker Pass project has inked an intriguing pact with industry titan General Motors. This alliance sees GM committing a hefty $650 million investment, disbursed in two stages. GM plans to source 100% of its lithium carbonate from Thacker Pass’s maiden phase ensuring the project jumps into production mode and making LAC among best long-term battery stocks out there.

BYD Co. (BYDDF)

Close-up of BYD (BYDDY) logo on red car, symbolizing BYDDY stock
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Warren Buffett-backed BYD Co. (OTCMKTS:BYDDF) isn’t just another name in the Chinese electric vehicle space; it’s a force to be reckoned with.

As the top-selling EV brand in China, BYD’s prowess isn’t confined to just its top-tier vehicles. It’s also a dominant player in the EV battery market, making massive strides in both production and supply.

With it recently eclipsing LG Energy Solutions to clinch the title of the world’s second-largest EV battery producer, the success of BYD’s Blade Batteries is undeniably evident. They have praised these batteries for their enhanced safety, durability, and robust performance, resonating well with EV manufacturers.

BYD unveiled plans for a $1 billion investment in India to manufacture EVs and batteries in India. BYD’s momentum is palpable, boasting sales of 1.25 million units in the first half of this year and a colossal 95% year-over-year bump.

Adding to the firm’s growing list of accolades, Goldman Sachs has stepped into the ring, giving BYD stock a bullish nod with a buy rating.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.
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Solid Power (NASDAQ:SLDP) is a force to be reckoned with in the buzzing realm of EVs, and Solid Power shines as a top contender. Despite SLDP stock’s 70% slide over the past year, savvy investors should perceive this as a golden buy-the-dip moment.

Solid-state batteries provide more than two to three times the energy density of a lithium battery. Beyond extending range, it flaunts a safer profile with minimized overheating risks while boasting a sturdier, longer-lasting design.

The cherry on top is the potential for rapid charging, akin to the time you’d spend at a petrol pump.

It revealed some positive results in the second quarter, kicking off electrolyte powder production and initiating large-scale EV cell manufacturing.

Moreover, its A-sample EV cell delivery is primed for 2023, potentially taking its stock to new heights this year.

Tesla (TSLA)

Tesla (TSLA) on stock market. Tesla financial success and profit.
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With its vanguard status in the EV realm, Tesla (NASDAQ:TSLA) continues to electrify the industry with considerable aplomb.

Not only is it shaping the EV landscape, but Tesla’s prowess also extends into its groundbreaking battery technology with its latest brainchild, the 4680-battery cell, harnessing a novel dry-coating method, making larger cells that could considerably lower the cost of its EVs.

While capacity constraints once clouded its production, the Inflation Reduction Act’s incentives continue to propel Tesla to ramp up its U.S. production.

The second quarter was a mixed bag for Tesla, and though it outperformed on revenue and diluted EPS, a dip in vehicle selling prices squeezed its operating margins.

This wrinkle has Wall Street raising eyebrows, nudging its shares down of late. But, for those with an optimistic lens, now might be a potentially auspicious moment to jump on the Tesla train.

EnerSys (ENS)

Electric car lithium battery pack and power connections. MMAT stock
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EnerSys (NYSE:ENS) is usually not the first name when considering EV batteries.

However, the firm boasts a robust portfolio in stored energy solutions, with its recent foray into lithium-ion battery development turning heads.

The firm is looking to team up with French heavyweight Verkor, a prime supplier to Renault, to develop a massive lithium-ion battery gigafactory in Texas.

Given Renault’s commendable record as the third top EV seller last year, with a staggering 228,000 EVs off the shelves, EnerSys is poised to seize a significant chunk of the EV battery market across the U.S. and Europe.

If its gigafactory project succeeds, its investors will likely witness EnerSys’s transformative shift to a more EV-centric blueprint. Its margins are improving at a healthy pace, providing it with the impetus to fund its game-changing projects ahead.

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/2023/08/7-millionaire-maker-battery-stocks-to-hold-through-thick-and-thin/.

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