Progress in the electric vehicle (EV) sector is largely governed by the batteries that provide their power. EVs continue to face significant challenges in comparison to internal combustion engine vehicles. That’s why innovative firms in the battery space continue to have compelling stocks.
One of the limiting factors is battery technology. The companies solving that issue will be rewarded handsomely. Those are exactly the firms that we will be discussing today. The progress they continue to make has the potential to increase share prices in their respective stocks.
Battery stock innovation will increase the travel range and charging times of EVs. The inherent value of that progress is extremely high. In turn, investing early in those firms will yield substantial returns. Let’s look at three companies progressing the right technology.
QuantumScape (QS)
QuantumScape (NYSE:QS) continues to progress in solid-state battery technology and remains one of the technological innovators to watch in the space. Its stock, however, is not particularly well-rated.
QuantumScape is partnered with Volkswagen (OTCMKTS:VWAGY), which invested heavily in its progress toward solid-state battery commercialization.
The company’s solid-state cells have reached 1,000 plus cycles in testing. What’s important to know here is that those battery cells exceeded commercialization performance targets. QuantumScape’s commercialization parameters were 800 cycles with 80% energy retention but it was able to achieve 1,000 cycles while retaining 95% energy.
While QuantumScape has shown that it is indeed capable of producing real innovation in the solid-state commercialization race, problems persist. The company notes that reliability is one such concern. Manufacturing process control will be a major hurdle for the firm. It needs to strictly control those processes otherwise uniformity of product will suffer. The prototype cells showed better than anticipated performance. To match that performance in the real world, the manufactured product must be strictly controlled.
Toyota (TM)
Toyota (NYSE:TM) continues to intrigue investors about its plans to develop solid-state batteries. That makes Toyota a stock to watch regarding battery breakthroughs and as an innovative company worth investing in.
Toyota has long been rumored to be a significant solid-state EV battery technology competitor. Earlier this year it confirmed its plans to develop such a battery with a 750-mile range and a 10-minute charging time.
The company announced it had discovered a technological breakthrough in mid-2023 that it then used as a catalyst to suggest it was accelerating development. The company’s current solid-state battery development roadmap suggests that initial commercialization will occur in 2027. The company’s best-performing batteries today provide 500 km (310 miles) of range on a 30-minute fast charge. The company plans to increase that performance to above 800 km (500 miles) in 20 minutes by 2026.
FREYR Battery (FREY)
FREYR Battery (NYSE:FREY) is approaching battery breakthrough innovation in a different manner than the previously mentioned stocks on this list. It focuses on clean battery solutions. The competition is concerned with developing solid-state batteries.
The company’s primary focus is limiting carbon dioxide emissions produced in the manufacture of batteries. The company has strong backing in its mission to achieve that goal. In July 2023 the European Union awarded Freyr a 100 million euro grant to build its ‘Giga Arctic’ factory in Norway.
The company continues to progress toward its goal and expects to provide functional battery cell samples for customers in the first half of this year. The company also has positive news of the fundamental variety. It had previously anticipated ending 2023 with a cash balance of $250 million but instead ended with $275.7 million in cash.
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.
