Finding the best battery stocks to buy and hold is a good way to make money in a fast-paced stock market.
Companies leveraging battery power are constantly developing new technology and seeing tremendous growth. While some battery stocks may offer short-term gains with high levels of risk, others provide the opportunity to buy and hold as the technology becomes more prevalent.
Battery technology has revolutionized the renewable energy industry. EVs now race down the highway powered by clean energy, while solar and power utility companies store the energy they generate with help from batteries.
An increased focus on clean energy and technological advancements means that battery stocks are prime for growth. If you’re looking to invest, here’s a list of the seven best battery stocks to buy and hold now.
NextEra Energy (NEE)
One of the best battery stocks to buy and hold with impressive potential for growth is NextEra (NYSE:NEE), the world’s largest producer of solar and wind power.
Thanks to strong partnerships with utility companies, revenue has been growing consistently. With the continued development of renewable technologies at a rapid pace, NextEra is poised to take even more advantage of these lucrative opportunities for growth in the foreseeable future.
Under President Joe Biden, solar companies have been granted a two-year reprieve from tariffs; this will enable NextEra Energy to reduce operating costs and finally free themselves up for expansion after navigating through rocky times due to supply issues in the last year.
Chinese electric vehicle maker Nio (NYSE:NIO) is often known as the Tesla (NASDAQ:TSLA) of China.
Over the past couple of years, the China EV startup has faced a tough time. But its prospects have recently been improving.
In 2022, Nio grew EV sales through impressive performances in the year’s second half. Despite Covid causing disruptions at year’s end, they ended on a high note with record-breaking monthly sales figures in November and December – up an incredible 60% from their final quarter results!
Last year, Nio launched several models, most notably the ES7 SUV and ET5 sedan. This year will see even more new releases and updates to their current lineup of cars.
Nio’s model selection is well-suited for the highly competitive market of China’s electric vehicles. Due to the prevailing situation of the broader market, Nio shares are trading at a discount. The stock is down 63% in the last year, making it one of the most enticing battery stocks to buy and hold.
Honeywell International (HON)
Honeywell (NASDAQ:HON) is a leader in advanced technology. Boasting up to 12-hour energy storage capacity, the company’s new “flow battery” has caught the attention of utility companies worldwide.
It’s an incredibly efficient way to store renewable energy sources like wind and solar. This remarkable battery technology is worth considering for any investor looking for battery stocks to buy and hold. Honeywell’s flow battery is likely to make huge waves in the industry and will prove itself a dependable resource for many years.
Investors have been increasingly interested in purchasing and holding battery-related stocks due to Honeywell International’s partnership with Duke Energy Corp. (NYSE:DUK), which could revolutionize American cities through energy storage systems.
With this partnership between Honeywell and Duke Energy Corp., battery production will have a larger share in the revenue stream for Honeywell. So, investors should take this project very seriously because battery stocks will likely offer immensely profitable future opportunities.
QuantumScape Corp. (QS)
QuantumScape (NYSE:QS) is up against its competitors in terms of the timeline for battery production.
However, it’s still a great investment prospect due to industry-leading investors like Bill Gates and Volkswagen AG (OTCMKTS:VWAGY).
QuantumScape has taken the right step forward in its investment approach by allocating contracts between EV makers and battery storage companies. Its plan to start large-scale production of solid-state batteries by 2025 should benefit patient investors.
Solid-state batteries can bring about a revolution in the EV world and open new possibilities for latecomers. If the hype surrounding QuantumScape’s technology is true, it could be a good investment. This groundbreaking tech could have an impact on the industry.
QuantumScape is still in its pre-production stage, yet, it has enough financial resources to keep it running. A risky venture, QS can turn into a potential gold mine.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) has captured the attention of some of the biggest names in automotive, like Ford (NYSE:F) and BMW (OTCMKTS:BMWYY).
Its cutting-edge solid-state batteries are raising the bar for what’s possible with battery technology. It packs more energy into a smaller package while reducing weight and creating greater safety.
Solid Power’s innovative battery technology could be a game changer for the electric vehicle industry. It can potentially increase the range of vehicles and decrease charging time. According to their plans, the batteries will be ready for use in production vehicles by 2024 after being shipped to automakers by 2023.
General Motors (NYSE:GM) recaptured the title of America’s biggest automaker from Toyota (NYSE:TM) in 2022 due to its ability to keep up with the high demand for cars and trucks, regardless of supply disruptions the whole industry faces.
Automakers are falling victim to the rise in production costs and chip scarcity, resulting in a lack of inventory available. This has especially drastically affected Asian car companies like Toyota, which continue to experience some of the most severe shortages. In turn, this has caused automobile prices to remain high.
The recent news, though, could be a blessing in disguise. It gives investors an attractive entry point for investors to enter the market. At 0.71 times price-to-sales, the stock is an absolute steal. In addition, Toyota is giving EV investors plenty of reasons to cheer, setting itself nicely for the future.
In 2022, the renowned car manufacturer announced various measures to strengthen its foothold in the electric vehicle industry. The company earmarked $5.6 billion to construct new plants to build electric vehicle batteries in Japan and the United States.
Toyota also raised its substantial investment in a new U.S. battery plant from $1.29 billion to $3.8 billion, which marks an encouraging sign of the growing demand for electric vehicles and the automotive industry finally embracing a greener future.
Partnering with battery maker Panasonic (OTCMKTS:PCRFY) through the Prime Planet Energy & Solutions (PPES) joint venture, this significant development is one of many positive steps in changing car culture for the better and pushing us ever closer towards better air quality, more sustainable transportation and ultimately a healthier planet for us all to benefit from.
Freyr Battery SA (FREY)
Freyr (NYSE:FREY), a company based in Norway, is escalating to the top of the battery industry and looks set to become one of the largest names in its sector.
It is one of the most innovative battery technology companies. And its recent project with 24M is further proof. By 2025, they aim to produce enough battery power to charge 800,000 Tesla Model 3s annually fully.
It’s easy to see why battery stocks like Freyr have become so popular recently. The battery technology at the heart of this enterprise offers significant advantages in terms of capacity performance and cost.
For investors looking for battery stocks to buy and hold, Freyr is a strong contender. With such impressive goals on the horizon, it’s not difficult to imagine that Freyr will become a leader in battery technology in the coming years.
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.