7 Battery Stocks to Buy and Hold for Big-Time Gains

  • The EV trend is not going anywhere, and you can get ahead of the game by investing in these battery stocks to buy and hold.
  • Albemarle (ALB): One of the biggest suppliers of lithium for electric vehicle batteries, the company will continue to enjoy healthy investor interest for several years.
  • Livent Corporation (LTHM): Although Livent is a young company, it is one of Tesla’s main suppliers of lithium, helping it stand apart from its peers.
  • Ganfeng Lithium (GNENF): Ganfeng Lithium supports China’s budding electric car market, making it interesting for those looking for exposure to both battery stocks and the huge Chinese market.
  • Panasonic Holdings Corporation (PCRFY): The Japanese conglomerate is a major supplier of batteries to Tesla.
  • Lithium Americas Corporation (LAC): The Canadian mining company is not currently producing lithium or earning revenue, but it has two projects that can lead to explosive growth for investors.
  • BYD (BYDDY): If you are looking for a diversified play on the future of transportation, BYD checks all the boxes.
  • Sociedad Química y Minera de Chile (SQM): SQM is based in Chile, giving it excellent access to the region’s lithium deposits.
battery stocks to buy and hold - 7 Battery Stocks to Buy and Hold for Big-Time Gains

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It’s time to start searching out battery stocks to buy and hold for the long term. Several companies are working on new battery technologies that could revolutionize how we power our devices. There are already a few battery stocks that look like they could be promising investments.

Most stocks on this list are lithium producers, and it is easy to see why. Lithium stocks have been on a tear in recent years, thanks to the skyrocketing demand for lithium-ion batteries. These batteries are used in everything from laptops and cell phones to electric vehicles, and demand is expected to increase in the coming years.

The other battery stocks to buy and hold are established performers who have additional units for battery production established. That makes them more diversified, spreading risks, which is attractive for investors looking to purchase battery stocks to buy and hold.

Here are a few batteries stocks that investors should consider buying and holding onto for the long term. With many companies working on breakthroughs in battery technology, these stocks are likely to continue to grow in value.

ALB Albemarle Corporation $295.86
LTHM Livent Corporation $30.02
GNENF Ganfeng Lithium $8.29
PCRFY Panasonic $8.61
LAC Lithium Americas Corporation $26.39
BYDDY BYD Company $49.50
SQM Sociedad Química y Minera de Chile $102.50

Albemarle (ALB)

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

Albemarle Corporation (NYSE:ALB) is one of the world’s leading lithium producers.

Despite the success and long-term viability of the company, the markets have not been kind to ALB recently. Although the company’s earnings numbers (reported in early November) exceeded expectations, investors were looking for higher figures.

Albemarle is a safe bet for investors seeking exposure to the growth of electric vehicles. The company has a strong balance sheet and a history of profitability. Albemarle also pays a dividend, which makes it an attractive investment for income-seeking investors.

Livent Corporation (LTHM)

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

When discussing battery stocks to buy and hold Livent Corporation (NYSE:LTHM) is always in the conversation. It is one of the largest producers of lithium hydroxide, and it also produces lithium carbonate and battery-grade lithium metal.

Livent utilizes various resources to produce high-quality batteries for Tesla’s electric cars. The headquarters are in Philadelphia, with facilities across China, Argentina, India, and Japan. It also owns mines in Canada. Unlike many riskier battery stocks to buy and hold, Livent Corporation is already profitable.

Shares are down substantially this year, and the latest selloff is because Livent Corporation missed estimates and narrowed its fiscal year guidance.

However, the company is confident it can turn things around. Livent is continuing to lay the groundwork for future growth by gradually rolling over existing client contracts from fixed-price to market-based pricing. Livent is also expanding its businesses, which should provide more growth opportunities for Livent. The stock should continue to climb as these events unfold.

Ganfeng Lithium (GNENF)

Lithium element on the periodic table. LITM Stock.
Source: tunasalmon / Shutterstock

Ganfeng Lithium (OTCMKTS:GNENF) has established itself in such fields as batteries for electric cars, energy storage systems, and consumer electronics.

Ganfeng Lithium is a leading producer of lithium batteries supplied to carmakers worldwide. It has the third-largest lithium compound capacity in the world and is ranked number one in China.

This gives it a strategic position as the hub of the EV supply chain.

It is also worth noting that Ganfeng Lithium is looking to expand beyond China. For example, Tesla and Volkswagen (OTCMKTS:VWAGY) are now among their customers. With increased global demand for electric batteries, this is a sound strategy.

The company is already benefiting from the global transition to electric vehicles, with demand for lithium rising sharply in recent years. Ganfeng Lithium will be one of the biggest beneficiaries as the electric vehicle market grows.

Panasonic (PCRFY)

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

Panasonic (OTCMKTS:PCRFY) is one of the safest battery stocks to buy and hold.

Panasonic stopped being Tesla’s exclusive battery supplier a while ago, but the company still delivers a healthy amount of batteries for the EV giant.

Panasonic expanded in Nevada by co-locating their production facility for North American batteries with Tesla’s Gigafactory 1. In addition, Panasonic is putting up a new factory in Kansas to meet Tesla’s battery demand. It is also building more production spaces at its factory in Japan to manufacture different varieties of batteries.

Panasonic’s supplier relationship with Tesla will remain important. But it remains well-positioned to supply EV batteries for all of the major automakers who have unveiled grand plans about producing electric vehicles.

While Panasonic isn’t a pure-play battery company, it will likely keep leading here because its focus has always been on making products that work best across many industries rather than specializing too early or late in just one industry trend.

Lithium Americas Corporation (LAC)

Graphic of Lithium scientific symbol (Li) in the shape of a big white gear with construction equipment and mountain around it
Source: GrAl / Shutterstock.com

Lithium Americas Corporation (NYSE:LAC) is a Canadian company that develops and commercializes lithium extraction technologies.

The company has been investing in two lithium mineral stretches. One is in Nevada, and the other one is in Argentina. Thacker Pass is the largest known lithium resource in the United States. In contrast, LAC’s Caucharí-Olaroz lithium project in Argentina will be the largest new brine operation for producing lithium in 20 years.

These are both huge projects. Hence, the company is splitting its North American and Argentine units into two independent listed entities. Markets reacted positively to this news.

Lithium Americas Corporation is holding their 100% interest in the company’s Thacker Pass lithium project, developed in the US.

This company will also hold a share of a stake in two other companies: Green Technology Metals and Ascend Elements. Meanwhile, Lithium International will own the stake in the Caucharí-Olaroz lithium project and the Pastos Grandes brine project in Argentina. It’ll also hold its 17% share of Arena Minerals under this enterprise.

The company’s share price has been on a roller-coaster ride since going public. But has shown strong upward momentum in recent months as investor interest in Lithium has increased. Given the potential size of LAC’s projects, the company is one to watch in the Lithium space.

BYD (BYDDY)

Electric car lithium battery pack and power connections. MMAT stock
Source: asharkyu / Shutterstock.com

BYD Company (OTCMKTS:BYDDY) is a Chinese multinational automotive manufacturing company with its headquarters in Xi’an, Shaanxi. It is most well-known for its automobiles, but it also manufactures batteries, mobile phone components, forklifts, electric buses, and LED lighting.

In recent years, BYD has made great strides in the electric vehicle market, and it is now the world’s largest manufacturer of electric vehicles. The company’s success is due in part to its cutting-edge battery technology, which allows BYD’s electric vehicles to travel long distances on a single charge.

BYD also produces rechargeable lithium-ion batteries, useful for hybrid and battery-powered vehicles. BYD’s batteries are used in various applications, including electric buses, cars, and trucks. BYD is also developing solid-state batteries that it claims will be safer, cheaper, and more efficient than current lithium-ion batteries. The company’s products are available in Europe, Asia, and the Americas.

Most notably, Warren Buffett’s Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a huge stakeholder in the company. Admittedly, the company has cut its stake over the last few years. However, it still owns an 18.87% interest in BYD.

Sociedad Química y Minera de Chile (SQM)

a lithium mine
Source: Shutterstock

Sociedad Química y Minera de Chile (NYSE:SQM) is a Chilean chemical and mining company that produces various mineral-based products. SQM’s products include lithium, iodine, potassium, sodium, nitrates, and other chemicals. In addition to its chemical operations, SQM mines copper, gold, and silver.

Nearby South American lithium deposits have helped the company keep production costs low for a long time. In addition to lithium, the company produces iodine, potassium, and other industrial chemicals that are used in fertilizers. This level of diversification makes investing in it a safer bet.

The only potential downside is potential volatility in the South American market. SQM’s stock tumbled when leftist activist Gabriel Boric was named the winner in Chile’s presidential elections last year. Investors felt the new administration would be hard on mining companies like SQM.

However, the opposite happened.

The Chilean government awarded SQM a lithium development contract earlier this year, adding legitimacy to the company and proof of continuing demand for their services. No wonder SQM is projecting revenue growth of 260% this year.

On the publication date, Faizan 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 InvestorPlace.com Publishing Guidelines.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.


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