SPECIAL REPORT The Top 7 Stocks for 2024

The 3 Best Battery Stocks to Own for a Lifetime

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  • The continuous growth in the EV market puts these battery-related stocks in a solid position.
  • EnerSys (ENS): ENS’ merger with Verker puts it as one of the biggest battery manufacturers.
  • Tesla, Inc. (TSLA): Tesla is a household name in the battery and EV industry.
  • Livent Corporation (LTHM): Livent holds the title of the world’s third largest lithium manufacturer.
Battery Stocks to Own - The 3 Best Battery Stocks to Own for a Lifetime

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The government’s continued push for car manufacturers to build electric vehicles (EVs) has pushed the auto industry market into another wave of innovation and bullish territory. While some investors would go for car manufacturers as a primary investment target, the battery sector deserves a look too. According to the estimates of some market experts, the battery industry is expected to grow to almost $424 billion by 2030. As electric vehicles shift to higher storage capacity batteries to power their electric motors, lithium-ion batteries have gained a spotlight in investors’ eyes.

But why lithium-ion batteries specifically? It charges faster, lasts longer and has a higher power density than other battery technologies. As lithium-ion still carries most of the industry on its back, these three stocks specializing in this type of technology offer a great opportunity for investors looking for a long-term battery stock.

EnerSys (ENS)

An image of wall-mounted batteries in a garage, solar panels and wind turbines outside; energy storage
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EnerSys (NYSE:ENS) is an energy solutions company specializing in industrial application-based stored energy solutions. The company’s products range from specialty batteries to motive power batteries and beyond for its customers globally. Its energy systems solution combines energy storage, power conversion, distribution and enclosure used in various telecom utility industries. Lastly, the ENS’s Motive Power batteries and chargers are utilized in industrial-powered vehicles, while its specialized batteries are used in automotive, medical, aerospace, and defense & security applications.

ENS is currently in partnership with Verkor, one of the leaders in battery technology in Europe, to further develop a lithium-ion battery gigafactory in the U.S. This partnership will help EnerSys optimize its cell sizing for its battery solutions and provide it independence from its non-domestic cell suppliers. The company has been awarded a long-term contract to supply contracts worth $92 million by the U.S. Navy for storage batteries aboard nuclear submarines. EnerSys’ recent developments and continuous innovation put it in our long-term battery stocks to own.

Tesla, Inc.(TSLA)

Tesla (TSLA) supercharging station during the day.
Source: Arina P Habich / Shutterstock.com

Tesla, Inc. (NASDAQ:TSLA) is no stranger to any tech enthusiast. The company is well known for its EVs, but also specializes in energy generation and storage systems. Its main battery products are Powerwall and Megapack. Powerwall has 13.5 kilowatt hours of usable capacity, while Megapack has a 3 megawatt hours energy capacity. Its customers can also avail solar panels and solar roofs to accompany its storage system and provide a clean and safe source of electricity. Tesla has been a well-known innovator in the industry and has been a household name for eco-centric enthusiasts looking for an environmentally sustainable option for transportation and electricity.

The market is currently all eyes on Tesla’s release of its upcoming Cybertruck delivery, which the company promises by the end of November. The company plans to expand its factories to help support its expected demand and mass production for its new product. While the company missed its recent earnings by a significant -17.19% drop from expectations, its energy segment is progressing smoothly as deployments rose by 90% year-over-year (YOY) with an impressive 4 gigawatt hours, its highest deployment to date. Investors expect this growth to continue as the company undergoes its 2-phase ongoing expansion of its California megafactory. Its brand power and continuous innovation put TSLA in our top battery stocks to buy.

Livent Corporation (LTHM)

Livent Corporation logo on a phone screen. LTHM stock.
Source: Ralf Liebhold / Shutterstock

Livent Corporation (NYSE:LTHM) is a lithium manufacturing company offering lithium-based products for various industrial uses like specialty polymers, lithium-based batteries and chemical synthesis applications. The company specializes in electric vehicles and battery market-focused high-performance lithium compounds as its main product. LTHM also produces butyllithium, high-purity lithium metals and various ranges of specialty lithium compounds for non-rechargeable batteries and aerospace applications.

To be clear, Livent does not produce batteries but deals with lithium production, making it an essential part of the industry. With the continued push for EVs, LTHM is one of the top choices for exposure to the market. Its recent merger with Allkem (OTCMKTS:OROCF) made the company the 3rd-largest lithium producer worldwide. Its latest earnings also showed the company’s financial strength, with a 10.87% surprise in EPS and an 8% increase in revenue YOY. Given its position as one of the worldwide leaders in lithium production and the overall optimistic prospects of the EV battery market, LTHM deserves a spot in any long-term investor portfolio.

On the date of publication, Rick Orford 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

Rick Orford is a Wall Street Journal best-selling author, investor, influencer, and mentor. His work has appeared in the most authoritative publications, including Good Morning America, Washington Post, Yahoo Finance, MSN, Business Insider, NBC, FOX, CBS, and ABC News.


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