Green stocks have been in demand lately. This is because of the need to reduce carbon emissions to curb climate change and follow environmentally friendly practices. Investment in clean technology have been trending upward as governments and societies are becoming aware of the damaging effects that pollution and greenhouse gas emissions have on the environment. Many countries around the world have imposed restrictions on carbon emissions. For example, in the U.S., President Joe Biden aims to have a zero-emission economy by 2050.
Therefore, investing in companies that are focused on making products that require less energy or usage of renewable source of energy — such as solar energy, wind energy and hydro energy — could prove to be beneficial over a long-term perspective.
Today, I have listed seven green penny stocks that have significant growth potential. Penny stocks have the ability to grow at an exponential rate within a short span of time. Therefore, many investors who want quick returns without having to invest significant capital can consider these stocks. However, they also run a higher risk. Since these stocks are not very well known, they tend to have lower liquidity and high volatility on the exchange.
Here are the seven best green penny stocks to buy now:
|CBAT||CBAK Energy Technology, Inc.||$1.27|
|SOLO||Electrameccanica Vehicles Corp.||$1.50|
|OPTT||Ocean Power Technologies, Inc.||$0.72|
|AQMS||Aqua Metals, Inc.||$0.84|
|TANH||Tantech Holdings Ltd||$0.27|
|ABML||American Battery Technology Company||$0.71|
|SPI||SPI Energy Co., Ltd.||$1.81|
Best Green Penny Stocks: CBAK Energy Technology (CBAT)
CBAK Energy Technology (NASDAQ:CBAT) is a leading manufacturer of lithium-ion batteries in China and the first publicly listed Chinese lithium stock on the U.S. market. The company’s batteries are widely used in electric vehicles (EVs), electric tools, energy storage, and other high-power applications. It also provides electrical energy solutions and sells products internationally, including in China, the U.S., Korea, and Europe.
Rising demand for EVs should keep the demand for lithium-ion batteries up. In first quarter (Q1) 2022, its revenues increased more than eightfold to reach $80.2 million. This was led by continued demand for lithium batteries and gains from battery cell materials from a recent acquisition. The company’s order backlog was $69 million as of May 9, 2022, including orders worth $29.3 million for lithium-ion batteries.
Most recently, it garnered a contract to sell large cylindrical batteries to Jiangsu Jemmell New Energy Automobile Co., Ltd. for its A00-grade mini passenger vehicles. Management expects to generate more than 10 million RMB in revenues from the deal.
Electrameccanica Vehicles (SOLO)
Electrameccanica Vehicles (NASDAQ:SOLO) manufactures and sells three-wheeled, single-seater electric vehicles, known as Solo. The company has strived to launch an EV at a price of of $18,500 that has a number of features found in more expensive vehicles. The Solo features a high speed of 80 miles per hour, a quick battery charging time of four hours for a range of up to 100 miles, and a LCD digital instrument cluster.
SOLO has been gaining traction in the Canadian markets. In Q1 2022, the company sold 45 Solo vehicles, leading to a total revenue of $1.05 million, up 466% year-over-year. So far, the company has produced 461 Solo electric vehicles, including 170 vehicles in Q1 2022. Given increased order for its vehicles, the company is ramping up production. Electrameccanica is slated to commence production from its Arizona plant in the U.S. by the end of the year to gain traction in the U.S. market.
Management aims to continue the development of other proposed products, including the Solo Cargo, Tofino and e-Roadster. The price point for Solo Cargo is expected to be $24,500. The Tofino is expected in the range of $50,000 to $60,000. Lastly, the e-Roadster is priced at $150,000.
Earnings remain subdued at negative 15 cents per share as the company ramps up production of its cars. Electrameccanica Vehicles is currently debt free, which bodes well for the company.
Best Green Penny Stocks: Ocean Power Technologies (OPTT)
Ocean Power Technologies (NYSEAMERICAN:OPTT) generates electricity by using its propriety technology from the ocean waves. The company operates in remote offshore locations in the U.S., Europe, and Australia. Its proprietary PB3 PowerBuoy system helps to generates power independent of the power grid. The device also transmits data on a real-time basis.
Given its usage in carrying scientific research by various industries such as oil and defense, the U.S. Department of Energy gave $197,203 to the company for carrying out preliminary design and study of a modular wave energy converter.
In Q3 2022 ending Mar. 31, 2022, the company acquired Marine Advanced Robotics, a manufacturer of autonomous surface vehicles that helps record oceanographic data across a range of variables. Management expects the transaction will expand the company’s marine domain awareness, which should attract new customers, positively impacting its revenues.
The company maintains a pristine balance sheet with zero debt. Additionally, it has cash and cash equivalents of $278.3 million, which is sufficient to support its ongoing projects.
Aqua Metals (AQMS)
Aqua Metals (NASDAQ:AQMS) provides reprocessing and related services to the recyclers globally. The company’s proprietary AquaRefining technology recycles lead acid batteries and recovers lead from the used batteries. The technology processes used batteries in a room-temperature environment, using water and organic acid that greatly reduces environmental emissions. The AquaRefining process is supposed to be the most cost-efficient recycling solution for lithium-ion batteries. Then, Aqua Metals either sells the recycled batteries or high purity metals to the metals industry.
At present, it serves the U.S. markets. Management expects the total addressable market for recycling lithium-ion batteries to reach $9 billion by 2025. Additionally, the recent developments made by the company have been quite encouraging.
In Q1 2022, management announced production of high-quality nickel, copper, and lithium hydroxide from lithium-ion batteries in the Tahoe-Reno Industrial Center. This is a significant achievement as the current commercially proven smelting procedure for recycling fails to recover the lithium. If the company’s process is proved to be successful, it will greatly benefit.
Aqua Metals has also commenced Aqualyzer equipment shipments to its first Asia Pacific licensee ACME Metal.
Best Green Penny Stocks: Tantech Holdings (TANH)
Tantech Holdings (NASDAQ:TANH) is involved in manufacturing bamboo-based charcoal products for industrial energy, household cooking, heating, purification, agricultural, and cleaning applications in China and internationally. The company’s products include charcoal briquettes used in grills or burners, air purifiers and humidifiers and bamboo vinegar used in various consumer and agricultural applications. It also manufacturers EVs, solar powered cells and lithium-ion batteries used in EVs and smart phones.
TANH’s cleaning equipment has secured a large order for self-driving autonomous street sweepers that are used to clean industrial parks and streets.
The company’s EV business is also showing traction. Most recently, it garnered orders for its light high-end midibuses from customers in Nigeria and Ecuador to be delivered in Q2 2022.
American Battery Technology Company (ABML)
American Battery Technology Company (OTCMKTS:ABML) is engaged in the exploration, mining, extraction, and recycling of battery metals. The company has received $4.5 million in funding from the government to support the company’s plan to produce more battery manufacturing materials and the clean energy movement.
The company has developed its proprietary technology to extract lithium from a lithium-bearing sedimentary claystone resource. ABML then processes the extracted lithium to produce battery grade lithium hydroxide. The company differentiates itself by creating a process through which lithium hydroxide can be extracted from any variety of lithium concentration. Most of its competitors only have the capacity to extract lithium from high-grade lithium materials.
The company’s initial exploratory drilling program has proved to be successful so far. As a result, it is now exploring an additional 1,800 acres of lithium-bearing claims in Nevada’s Tonopah Flats.
Best Green Penny Stocks: SPI Energy (SPI)
SPI Energy (NASDAQ:SPI) is engaged in providing solar solutions for business, residential, government, and utility customers and investors. The company derives its revenues from the following three business streams: 1) It offers engineering, procurement, and construction services to independent power developers or commercial and industrial companies. 2) SPI develops, owns, and operates its solar projects to sell electricity to power companies and other consumers. At the end of Mar. 30, 2022, the company owned and operated 16.8 megawatts of solar projects. 3) It designs and develops EVs and EV charging solutions.
In Q1 2022, the company posted revenues of $38.5 million, up 14.6% year-over-year led by an increased demand for renewable energy solutions. SPI has won several new projects. As a result, it is expanding its solar module manufacturing capacity in its Sacramento facility, which is expected to reach a 1.1 gigawatt capacity by year-end 2022.
The EV business is also performing well. Management expects revenues in the range of $200 million to $220 million in 2022, reflecting growth between 23% and 35% from 2021.
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Read More: Penny Stocks — How to Profit Without Getting Scammed
On the date of publication, Sakshi Agarwalla 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.