As electric vehicles continue to charge into the automotive mainframe, the buzz around battery stocks to buy is growing louder. With the battery industry set to dazzle, savvy investors are sitting up and taking notice.
The shift is palpable as the battery stocks to buy benefit as companies ramp up production as they race to meet a surge in demand. According to the International Energy Agency, the U.S. saw vehicle battery demand spike by a whopping 65% in 2022.
McKinsey & Company forecasts the demand for lithium-ion batteries alone to grow over 30% annually by 2030.
A global regulatory shift toward sustainability and a rising appetite fuels this surge for greener energy, making the search for the best battery stocks to buy worth undertaking.
So, if you’re looking to energize your portfolio, it’s time to plug into these dynamic picks, setting the energy stage ablaze.
Lithium Americas Corp. (LAC)
While Lithium Americas Corp. (NYSE:LAC) may have witnessed a considerable 30% dip in value over the past year, savvy investors would do well to look beyond this turbulence.
The company’s high-quality assets should unlock long-term value complemented by its recent shareholder-approved split of its U.S. and Argentina operations.
Peel back the layers, and the Thacker Pass project shines brilliantly, touting a post-tax valuation of $5.7 billion. With projections pointing to a commanding EBITDA at a mind-boggling $2 billion over four decades, Lithium Americas’ future certainly appears electric.
Fast forward a bit, and once Thacker Pass kick starts its robust cash flow generation, the position it grants Lithium Americas in the market is hard to rival. This is one of the best battery stocks to buy for the long term.
Analysts seem to concur, as they rally behind LAC stock with a consensus “Strong Buy” rating, predicting a potential leap of 85.3% from its current price.
Panasonic Holdings (PCRFY)
Panasonic Holdings (OTCMKTS:PCRFY) is a veteran in the battery stock realm, a powerhouse with a trajectory worth watching and among the most reliable battery stocks to buy.
PCRFY stock is on an uptrend, as seasoned and budding investors alike are likely to find it a compelling prospect, even at current valuations.
Dig a little deeper, and Panasonic’s commitment to EV battery capacity becomes evident. With an operational plant in Nevada and another one slated for Kansas, the company’s ambitious plans will propel its annual battery capacity to 80GWh.
However, Panasonic isn’t merely expanding; it’s innovating at a rapid pace. By 2030, it intends to boost battery energy density by 20%, promising sleeker and more potent batteries.
A legacy that spans over four decades, Panasonic’s integration of its supply chain reveals its mastery over battery production.
What’s even more enticing is that the potential upside of PCRFY stock comes with an attractive price tag, as it currently trades at 0.47 times forward sales.
Albemarle (NYSE:ALB) is another excellent battery stock bet trading at a forward P/E ratio of 6.3 times. Delving deeper into its business, Albemarle wants to increase annual lithium sales volume 20% to 30% in the coming years.
Once lithium takes off, anticipate stronger EBITDA margins and impressive free cash flows.
Flaunting a stellar net sales growth of 129% and 60% for the first quarter and second quarter, respectively, it’s clear the company’s prowess extends beyond mere words.
The company clinched a substantial $90 million grant from the U.S. Department of Defense, a move likely to amplify lithium production at its Kings Mountain mine.
By 2026, this mine will serve as the powerhouse behind over 1.2 million EVs annually. Pair this with Albemarle’s recent guidance boost and a consistent 28-year dividend growth track record, and you’re looking at an incredibly attractive bet.
Sigma Lithium Corporation (SGML)
Sigma Lithium Corporation (NASDAQ:SGML) is a resilient player in the lithium sphere, offering tremendous long-term potential for those willing to stomach the risk.
Venturing into the lithium mining space with its Grota do Cirilo mine in Brazil, Sigma started its pursuit back in 2012. Fast forward to 2021, after securing adequate funding, the firm’s blueprint transformed into tangible construction.
Though still in its pre-revenue phase, Sigma is charting a grand vision with an ambitious goal to churn out 130,000 tons of lithium concentrate by 2023.
A significant off-take agreement with LG is recently completed, and preliminary talks with Mitsui & Co. suggest more partnerships on the horizon.
Even amid the ebb and flow of lithium prices, Sigma’s shares have surged by a noteworthy 22%. With the EV fervor showing no signs of cooling down, the thirst for lithium is anticipated to remain high.
Solid Power (SLDP)
While Solid Power’s (NASDAQ:SLDP) stock performance of late may have left investors deflated recently, a deeper dive reveals a landscape of long-term promise.
The stock’s downtrend may seem disheartening at first glance, but the underlying narrative suggests this could be a buying opportunity.
Naturally, the anticipation of solid-state battery commercialization by 2026 infuses an element of waiting into the mix, but it could potentially result in massive returns for those who are patient.
BMW’s licensing of its groundbreaking technology for parallel R&D adds another feather to its credibility cap.
A financial snapshot of Q2 2023 shows a robust cash balance of $443 million, alleviating any immediate dilution fears. Solid Power is gearing up to deliver its A-sample EV cells to these automotive giants for validation tests.
BYD Co. (BYDDF)
Warren Buffett-endorsed BYD Co. (OTCMKTS:BYDDF) is more than just a blip on the Chinese EV radar. As the reigning champion of EV sales in China, BYD has also carved a niche in the EV battery ecosystem, with its foot firmly on the production and supply accelerator.
BYD beat LG Energy Solutions to hold the coveted title of the world’s second-largest EV battery producer. A testament to this achievement is the widespread acclaim for their Blade Batteries, lauded for resilience, safety, and peak performance.
Also, we are seeing BYD fanning its wings, announcing a colossal $1 billion foray into India, setting the stage for EV and battery manufacturing.
The company’s prowess in battery manufacturing underscores its formidable position in China’s blossoming EV landscape. As BYD blazes its trail, backed by stellar growth figures and promising ventures, it seems poised to redefine the battery-driven future.
Livent Corporation (LTHM)
Livent Corporation (NYSE:LTHM) has made its mark in the specialty chemicals space and continues to grow on the back of its thriving lithium segment. Its financial scoreboard is impressive. The company delivered second quarter sales of $235.8 million.
In an exhilarating venture, Livent is joining forces with Sakuu Corporation to spearhead a project on 3D printable lithium-ion batteries.
If it pans out, the battery manufacturing blueprint could be up for a radical overhaul. Topping this off, its $10.6 billion fusion with Allkem Limited could be a game-changer, ensuring a steady influx of prime lithium ore.
With lithium prices poised on the cusp of a rally, Livent emerges as a luminary in the niche. Also, it seems the financial punditry agrees, with Tiprank’s analysts stamping a “Moderate Buy” rating on the stock, hinting at a potential 81% uptick from its current price.
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.