The electric vehicle industry is going through several important changes that have stunted prices. However, the current expectation is that presently muted demand will not continue indefinitely. The industry has already reached a critical mass that all but ensures the continued growth of the industry. 

In fact, this graph indicates that the demand curve is about to incline steeply again. That makes it an especially fortuitous time to invest in battery stocks. Technological advances hold major promises for the sector. Solid-state batteries are one of the primary investment areas to consider. Further lithium will be required for both current and future battery types. Thus, these companies could help turn a dollar invested into several dollars.

Solid Power (SLDP)

Solid Power (NASDAQ:SLDP) Is one of the leading stocks to consider in the solid-state battery sector. The company is working to rapidly develop the technology which promises to revolutionize the electric vehicle industry. 

Solid-state batteries utilize a solid electrolyte that is superior to current battery technology. Solid-state batteries have an improved safety profile relative to the batteries used in current EVs. The electrolyte itself is solid and non-flammable. Further, solid-state batteries have greater energy density and delete allowing the production of smaller batteries.

Most importantly, solid-state batteries drastically extend the range of electric vehicles and do so with faster charging and longer life cycles.

Solid Power recently began shipping its sample EV cells for qualification. The company has developed relationships with leading manufacturers including BMW. Also, the company’s top-line growth remains strong. Growth stocks such as Solid Power are in a strong position due to current expectations around interest rates.

Lithium Americas (LAC)

Lithium Americas (NYSE:LAC) is a very well-positioned lithium stock for investors seeking multi-bagger returns. The company recently separated its operations in order to take full advantage of its ownership over Thacker Pass.

Thacker Pass is located in Nevada and sits above the largest measured and indicated lithium resource in the Americas. In fact, Thacker Pass is the second-largest recorded lithium source on earth. 

The company began Construction at its Nevada site in early 2023 and production is expected in 2026. So, it’s clear that there is real risk in investing in LAC stock. However, as mentioned, electric vehicles are going nowhere. Sales have reached a critical mass and governments and manufacturers are fully on board with the transition.

Further, lithium is required in current-generation EV batteries as well as solid-state EV batteries. All indications are that Lithium Americas continues to have very real potential to multiply any investments made today. 

Of course, Lithium Americas is ultimately a commodity stock. Swings in price are inherent to the nature of the sector but the long-term outlook remains very positive. Investors would be hard-pressed to find a lithium stock that is better aligned with American geopolitics in relation to the electric vehicle sector.

QuantumScape (QS)

QuantumScape (NYSE:QS) Is another solid-state battery developer with multibagger potential. The stock has exhibited that potential in 2023 as lithium prices have fluctuated wildly.

The electric vehicle industry and the lithium sector are undergoing significant issues at the moment. As a result, the prices across all of the interrelated sectors remain muted. That continues to be an opportunity for contrarian investors. QuantumScape’s shares are trading below $6 at the moment. However at two distinct points in 2023 they have traded above $11.

Again, the long-term outlook remains strong for electric vehicles. If QuantumScape succeeds in commercializing solid-state batteries, prices will rocket upward. 

At this point there isn’t that much to report regarding the company’s progress. It hasn’t made any massive breakthroughs nor has it made any fatal errors. Instead, QuantumScape continues to progress. Investors should understand that investing in QuantumScape is inherently risky. The company remains in the pre-revenue stages and burns through more than 100 million dollars each quarter. That said, its liquidity reserves at present are sufficient for the company to continue to operate indefinitely.

On the date of publication, Alex Sirois 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.