Penny stocks are names that are trading under $5 per share. As a result, they’ve typically dropped a great deal over the last year or two. But on the Street, what goes down can easily reoccur. Short sellers often pounce mercilessly on companies with tremendous potential but have hit the proverbial “bump in the road.”

At the same time, many large investors are very reluctant to purchase the stocks of such firms. And in the last year, with many on the Street very fearful about elevated interest rates, more stocks than ever are in the latter situation.

But with rates coming down quickly and the economy seemingly “hanging tough,” many speculative, high-potential equities, including many penny stocks, will make big comebacks.

Here are three penny stocks that can make investors’ dreams come true by soaring sharply in the not-too-distant future.

Solid Power (SLDP)

Trading around $1.50, Solid Power (NASDAQ:SLDP) develops powder that automakers use to build high-performance, solid-state batteries for electric vehicles.

Very importantly, the company’s powder has met all the requirements of its top customer, BMW (OTC:BMWYY). As of last month, the German automaker was continuing to evaluate SLDP’s powder. The fact that SLDP has recruited such an impressive partner makes me upbeat about the outlook of SLDP stock.

Moreover, the batteries made using SLDP’s power are likely safer and have much higher ranges than the lithium-ion batteries that power most EVs today.

Indeed, on last month’s Q3 earnings call, SLDP CEO John Van Scoter said, “We believe we will drive greater range, battery life and safety for the consumer, while driving down cost for automakers.” That combination should ultimately result in great financial results for Solid Power.

BlackBerry (BB)

Within the next six months, BlackBerry (NYSE:BB), which is changing hands for around $4, looks poised to sell the entire company or launch an IPO of its very successful Internet of Things business. Either of those two courses of action should significantly boost BB stock.

In August, Veritas reportedly offered to buy the entire company. BlackBerry will probably take Veritas’s offer if stocks are trading poorly next year. And that offer will probably be much higher than the current level of BB stock, considering that the shares are down over 10% since the day before Veritas’ submission was reported. (The amount of the offer wasn’t disclosed).

Or BlackBerry could spin off its relatively fast-growing Internet of Things unit (IoT), whose revenue climbed 9% last quarter versus the same period a year earlier. In fact, in October, the company said that it would indeed take the latter course of action.

General Electric (NYSE:GE) stock performed very well this year after it spun off its healthcare unit in January. Moreover, as I’ve written in past columns, BlackBerry’s IVY business, which is included in the Internet of Things umbrella, has a bright future. That’s because at the heart of IVY will be an app store for autos that BB, which already has a presence in hundreds of millions of vehicles, is establishing.

Finally, advanced driver assistance and self-driving systems continue to proliferate, increasing the demand for and the importance of top-notch IT security systems within vehicles. As a result, the revenue generated by QNX, IoT’s highly secure operating system that already powers the IT systems of hundreds of millions of vehicles, should continue to grow.

Snow Lake Resources (LITM)

Snow Lake (NASDAQ:LITM) owns the rights to 60,000 acres of lithium mining grounds expected to produce enough lithium to power 5 million EVs over 10 years, another InvestorPlace writer, Alex Sirois, noted in June. Moreover, Sirois noted that the company could find much more valuable minerals in its territory, as only 1% of its land in Canada had been explored.

The Street is currently bearish on lithium stocks because the market has been oversupplied this year, and much more lithium is coming. As a result, the prices of the metal have tumbled. However, multiple analysts predict that lithium prices may jump in 2025.

For example, Fitch Solutions believes that “a lithium shortage could hit as early as 2025” because China’s demand for the mineral will exceed its production by a wide margin.

Luckily for Snow Lake and its shareholders, the company, whose shares are trading around 50 cents, expects to start producing lithium in 2025. In fact, last year, the company agreed to supply LG Energy, the giant battery maker, with lithium starting in 2025.

Consequently, I believe that LITM stock will likely start rallying sharply in the second half of next year, helped by anticipation of both a lithium shortage and Snow starting to generate revenue from LG.

On the date of publication, Larry Ramer held a long position in BB. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.