In the financial markets currently the battery sector is gaining great momentum, in recent years we have seen an increase in demand for this great tool today. Not only are they being used for electric vehicles but also for many other tools that we use in our daily lives. This has led to the rise of battery stocks to make you rich.
There are companies that are doing an incredible job of research and development to make these batteries more effective and efficient, even though many of them are presenting very innovative solutions.
Here I bring you 3 battery stocks to make you rich, let’s analyze them briefly.
Amplify Lithium & Battery Technology ETF (BATT)
Amplify Lithium & Battery Technology ETF (NYSE:BATT), is an investment vehicle that allows individuals to participate in the growing global opportunity presented by the lithium-ion battery market. This ETF is gaining attention and is considered a promising addition to the investment portfolio for several reasons.
First, it is essential to recognize that the lithium-ion battery market is on a remarkable growth trajectory. In 2020, it was valued at approximately $44.2 billion, and experts predict that it will increase to around $94.4 billion by 2025. This represents a significant compound annual growth rate (CAGR) of 16.4%. This makes it one of those battery stocks to make you rich.
Demand for lithium-ion batteries is driven by a number of factors, including the continued popularity of mobile devices, the growing adoption of electric vehicles, and the increasing need for energy storage solutions. Investing in BATT makes it possible to take advantage of this lucrative trend.
Their strategy revolves around building a portfolio of companies that derive substantial revenues from various facets of lithium battery technology. This includes companies involved in battery storage solutions, metals, and materials for batteries and electric vehicles. In doing so, they aim to achieve investment results that broadly align with the performance of the EQM Lithium & Battery Technology Index.
According to the most recent update, they have net assets totaling $127,802,113, indicating a strong market presence. In addition, it holds positions in 112 different companies, providing investors with diversified exposure to the lithium battery technology sector. This diversification can help spread risk and increase return potential.
FREYR Battery (FREY)
FREYR Battery (NYSE:FREY) is a company dedicated to developing next-generation, cleaner, and more efficient batteries. Imagine these batteries as the energy that powers your electronic devices, but taken to the next level to power electric cars and store renewable energy more effectively.
Now, let’s talk about their financial situation. Recently, in the second quarter of 2023, they reported a net loss of $25.3 million. This means that they spent more money than they earned in that period. The main reason for this loss was due to corporate costs, expenses to support projects and business development activities, as well as research and development expenses.
However, part of this loss was offset by gains on foreign currency transactions. Despite this loss, they had $383.8 million in cash and cash equivalents at the end of June 2023. All in all, it’s one of those battery stocks to make you rich.
Now, why do some investors still see FREYR as a stock with great potential? It’s because the company is involved in major projects. One exciting piece of news is that they have received a €100 million grant from the European Union to support their Giga Arctic project in Norway. This project aims to create a 29 GWh capacity battery production facility using advanced technology and 100% renewable energy.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) is a key player in the exciting world of batteries. What they do is something truly innovative, they develop and manufacture solid-state batteries, a type of battery that promises to revolutionize the electric vehicle and energy storage industry. Why is this exciting? Because these batteries are more efficient, safer, and longer lasting than traditional lithium-ion batteries.
They are shining in financial terms. In the second quarter of 2023, they generated $4.9 million in revenue, a big jump from the previous year. In the first half of 2023, their revenue reached $8.7 million, showing impressive growth.
Yes, they are also spending more, especially on new product development and expanding operations. This led to an operating loss of $22.2 million in the second quarter and a net loss of $12.2 million.
They have humble beginnings, born out of research at the University of Colorado at Boulder. Now, they operate a large manufacturing facility in Thornton and are planning to expand globally. They are part of a select group of companies, from startups to automotive giants, that are competing to bring to market these solid-state batteries, seen as crucial to accelerating electric vehicle adoption and sustainability.
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.
