The 3 Best Battery Stocks to Buy in Q2 2024


  • Amid EV industry challenges, savvy investors will want to wager on these best battery stocks to buy, eyeing future rewards
  • Panasonic Holdings (OTCMKTS: PCRFY): Panasonic aims to expand its customer base beyond Tesla while aiming for a 25% increase in energy density by 2031, making it a strong investment choice
  • Albemarle (NYSE: ALB): The world’s largest lithium producer continues demonstrating resilience in the volatile lithium market while underscoring its investment appeal.
  • Solid Power (NYSE: SLDP): Leading in solid-state battery innovation, with significant advancements and partnerships with top automotive giants, Solid Power remains the most promising long-term investment in battery technology.
Best Battery Stocks to Buy - The 3 Best Battery Stocks to Buy in Q2 2024

Source: Just_Super /

Battery stocks have seen better days. With the electric vehicle (EV) industry struggling and lithium prices down in the doldrums, the top battery and EV stocks are trading at deep discounts. Savvy investors, though, will likely take advantage of the current scenario and load up on the best battery stocks on the dip. The secular tailwinds in the sector point to massive long-term upside potential for the best battery stocks to buy.

The EV industry is a linchpin for the burgeoning battery space but has been weighed down by a mix of economic, competitive, and regulatory factors. Consequently, the critical metal powering EV batteries, lithium, has witnessed a price drop of over 80% from its peak in 2022. Additionally, stocks related to the industry have slowed down substantially, as shown by over a 25% drop in returns from the Global X Lithium & Battery Tech ETF. Nevertheless, the incredible outlook of the battery stock space is tough to deny, which is why the current dip presents an excellent long-term opportunity.

Panasonic Holdings (PCRFY

A Panasonic (PCRFY) sign hanging in Beijing, China. generation z
Source: testing/

Panasonic Holdings (OTCMKTS:PCRFY) is an OG in the battery game, powering everything from the ground up with innovation and reliability at its core. It’s a top supplier for EV giant Tesla’s battery requirements, a partnership that’s proven fruitful over the years. However, it has been looking to diversify its customer base, inking deals with Subaru and Mazda, effectively safeguarding its business against the volatility of an individual company. 

Its forward-thinking moves don’t stop there, as Panasonic aims to take the volumetric energy density of batteries by 25% above its current standards by 2031. Enhancing energy density will result in longer-lasting batteries, greater efficiency in storage, and more compact designs. Moreover, it aims to increase battery capacity to 200 GWh by 2031. Also, the company plans to make inroads in the novel solid-state battery market, with an incredible portfolio of 445 patents. Hence, with multiple catalysts in motion and PCRFY yielding an excellent 2.32%, the stock is perhaps a no-brainer in its niche. You can see why this one made our list of the best battery stocks to buy.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
Source: IgorGolovniov/

Albemarle (NYSE:ALB) is a diversified leader in global chemicals and the largest lithium producer worldwide. Interests in brine, bromine, lithium, and catalysts enable Albemarle to offset losses from any specific segment effectively. However, the volatility in the lithium market has had a major impact on its top-line performance in the past couple of years. The surge in lithium prices in 2022 led to 120% year-over-year (YOY) revenue growth to $7.3 billion. In contrast, revenues last year increased by 31% YOY to $9.6 billion, indicative of the impact of plummeting lithium prices.

Nevertheless, ALB’s operational discipline has enabled the firm to commendably navigate the crisis in the lithium market. Its recent earnings topper is a testament to that notion, beating analyst estimates by 74 cents in its fourth-quarter (Q4) report. Moreover, its dividend coverage is impressive, showing its earnings can effectively cover its dividend payments roughly eight times. Additionally, it is trading at a double-digit discount across key pricing metrics compared to its 5-year averages.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.
Source: T. Schneider /

Solid-state batteries are often dubbed the “holy grail” of battery technology. These batteries promise game-changing improvements in safety, energy density, and charging speeds compared to lithium-ion counterparts. A fair few companies are spearheading this revolution, but Solid Power has established itself as a frontrunner.

It is coming off another strong year in 2023, progressing toward commercialization at an encouraging pace. Key achievements last year included a ramp-up in electrolyte production to 1.1 metric tons monthly and advancements from A-1 to A-2 sample cells for automotive qualification. Moreover, it inked a new partnership with battery manufacturing upstart SK On, adding to its illustrious list of partners. Remember that the company has the backing of automotive titans like Ford (NYSE:F) and BMW (OTCMKTS:BMWYY), which should help accelerate the mass production timeline. Also, SLDP boasts a robust liquidity position with $415.6 million, promising a relatively smooth path ahead this year. If you are looking for the best battery stocks to buy, you can’t go wrong with any of these.

On the date of publication, Muslim Farooque 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 Publishing Guidelines

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

Article printed from InvestorPlace Media,

©2024 InvestorPlace Media, LLC