While Tesla (NASDAQ:TSLA) and Elon Musk are at the top of our minds in the electric vehicle (EV) market, there are many other players worth watching out for. While investors are watching the race to make combustion engines obsolete, now is the right time to snap up the EV battery stocks that have the power to change your financial future. Battery companies are an integral part of the EV ecosystem and without them, it is hard to imagine a higher EV adoption. If you are not ready to buy an EV yet or invest in an EV stock, you might want to consider investing in the best battery stocks to become rich.
Lithium Americas (LAC)
As we move towards a greener future, we will require more lithium. Yet, even by today’s needs, it is a mineral that has a higher demand than supply. One company that owns some of the biggest assets of lithium is Lithium Americas (NYSE:LAC). It plays a significant role in EV charging infrastructure and has multiple catalysts working in its favor.
One of its top assets, the Thacker Pass mining site is expected to commence in 2026 and it could unlock value worth $5.7 billion. It owns one of the hottest commodities today and even the government is in talks to lend $1 billion to the company to help fund the project. It could be the largest ever loan given to a mining company through the loan program of the U.S. Energy Department.
Besides the Thacker Pass project, it has two other projects that are in development, Sal de la Puna and Pastos Grandes. These are in the pre-feasibility and feasibility stages respectively. LAC stock has dropped 14% in the past month and this drop is a solid chance to buy. Keep in mind you will have to hold on to the stock until the Thacker Pass begins cash flow generation. That is when I believe you will be able to see solid gains.
BYD Co. (BYDDF)
Next up on my list is BYD (OTCMKTS:BYDDF). A Chinese company, it is the biggest Tesla competitor and the second-largest battery maker in the world. In the recent quarter, it was very close to Tesla in delivery numbers. It saw a 75% rise in retail sales year-over-year and a 28.6% rise in revenue in the first six months of the year.
The battery maker makes batteries which are highly efficient and have several advantages over lithium-ion batteries. They can be produced at a lower cost and even Tesla is using some of these batteries in its cars. Already ruling the EV industry, BYD is ready with a sub-brand that aims to offer SUVs, off-road vehicles and sports cars. Its delivery numbers show that the company is offering exactly what the consumers need and the demand for its cars is only rising. It is one of the best battery stocks to invest in right now.
BYD Co. has a global presence and is expanding into France, Japan and Australia this year. What makes this stock a must-buy is the fact that despite being a Chinese EV maker, the company already has a stronghold across multiple countries. Hence, it will not suffer as much as the other EV companies because of strict Chinese regulations. BYD Co. is firing on all cylinders and if it continues with the same momentum, 2024 could be an even bigger year.
QuantumScape (QS)
Battery maker QuantumScape (NYSE:QS) is working on lithium technology that can replace the existing lithium-ion batteries. These batteries will certainly rely on lithium but they come with a faster charge time and a higher efficiency.
If all goes well, this is one technology that can change the industry. While the technology is innovative, it is not on the market yet. This is what makes the business risky. QuantumScape has no revenue currently and it is using money to develop the batteries which has led to continuous losses. The company did deliver prototypes in December 2022 but commercial production is yet to begin. This is also an opportunity for you to be an early-stage investor in the business.
The stock is up 15% year-to-date. If you can hold the stock for the next few years, I think it will show significant gains. Several macroeconomic factors like high interest rates, and low consumer spending are working against the company right now. It is likely that we could see this reflected in the quarterly numbers. However, if you have the ability to handle some risk in your portfolio, now is the time to buy into QS stock. It is going to be a bumpy road ahead but it could be worthwhile long-term.
On the date of publication, Vandita Jadeja 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.
