In green technology, millionaire maker battery stocks have been a major interest to savvy investors. As the heartbeat of multiple applications, battery technology, especially in the burgeoning field of electric vehicles (EVs), is undergoing rapid changes. This evolution positions battery stocks as critical components in investor portfolios. Additionally, it offers substantial value for those with a vision for the long haul.
Focusing on the global demand for EV batteries, we’re witnessing a likely multi-fold increase by the decade’s end, signaling a prosperous phase for top EV battery firms. Batteries, now critical in everyday tools from electric cars to powering our homes and offices, underscore the expansive scope of these investments. In this context, we’ll explore three key industry players. However, it’s imperative to recognize that while these stocks, still in nascent stages, promise massive long-term returns, propelling investors into the millionaire bracket, they carry inherent risks. Hence, this high reward and risk balance is the linchpin of today’s battery stock market.
Millionaire Maker Battery Stocks: Albemarle Corporation (ALB)
Albemarle Corporation (NYSE:ALB) recently experienced a sharp downturn, mirroring the drop in lithium prices. This dip, however, opens a promising window for those looking to load up on ALB stock with a long-term horizon in mind. Over the years, it has been an excellent wealth compounder, generating more than an 80% return over the past decade. As EVs continue to surge in popularity and a looming lithium shortage appears on the horizon, ALB is likely to pay many dividends and then some for its investors.
Speaking of dividends, ALB yields an excellent 1.4%, growing its payouts for almost 30 consecutive years. Furthermore, in response to these market dynamics, Albemarle has smartly embarked on cost-cutting initiatives and strategically rephrasing its growth investments. Also, the company has set ambitious goals as it looks to ramp up its lithium conversion capacity from 200ktpa in 2022 to a substantial 600ktpa by 2027. This proactive approach underscores Albemarle’s adaptability in a fluctuating market and highlights its strong commitment to its niche.
QuantumScape (QS)
QuantumScape (NYSE:QS) emerges as a captivating tale in the battery stock narrative. Moreover, this stock isn’t for the faint-hearted, but for those seeking potential multi-bagger returns, a calculated exposure to the stock could be a game changer over the long run. Recently, the firm made a significant stride by importing EV battery prototypes to automotive customers. This critical move serves as robust validation from the sector, underscoring the company’s long-term potential.
Adding to its allure, Volkswagen (OTCMKTS:VLKAF), a giant in the automotive world, has invested in QS, bolstering its credibility. Further cementing its position, the company boasts six commercial agreements with top automotive original equipment manufacturers. Although production-ready prototypes aren’t expected until 2025, any positive validation results from these automakers could send QS stock to the moon. With the stock experiencing a 94.74% decline from its all-time high, the current situation suggests a compelling opportunity for long-term growth.
Millionaire Maker Battery Stocks: Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) has faced a tough year, with its stock being chopped in half over the past 12 months. Despite this, the stock appears undervalued following a substantial correction. SLDP stock trades at $1.17 and has dropped roughly 91.3% of its value from its all-time high price of $13.40 on Dec. 9, 2021. Anticipating the potential commercialization of solid-state batteries, expect the stock to generate multi-bagger returns.
A pivotal moment came in the third quarter of 2023 when Solid Power delivered its first A-1 EV cells to BMW (OTCMKTS:BMWYY). This moment marked a major step towards automotive qualification. The success of this automotive validation could serve as a positive catalyst, potentially propelling SLDP stock. Hence, SLDP is positioned remarkably well to commence sales of solid-state batteries by 2026, pushing its stock to lofty new heights.
Honeywell International (HON)
Honeywell International (NASDAQ:HON) distinguishes itself as a top industrial linchpin in the battery stock landscape. Renowned for offering a low-risk investment option, the company’s involvement in the battery market is bolstered by its sales diversification across a myriad of sectors. This broad operational spread mitigates risks, making it a compelling choice for investors.
HON’s array of energy storage solutions is remarkably diverse, encompassing lithium-ion, flow, and hydrogen batteries, each catering to different discharge cycles. These offerings are a part of its promising Performance Materials and Technologies segment, which has demonstrated stellar long-term growth. Remarkably, Honeywell’s sales have risen by 3% in the past quarter, reaching $9.2 billion amid an unprecedented $31.4 billion backlog.
Further enhancing its attractiveness, Honeywell scores an impressive 8 out of 10 in profitability, outshining its peers with several industry-leading metrics. Additionally, its solid Altman-Z score of 4.03 categorizes it as a safe investment.
Millionaire Maker Battery Stocks: BYD Company (BYDDF)
BYD Company (OTCMKTS:BYDDF) has rapidly emerged as a top player in the EV arena, challenging established industry leaders. In 2023, BYD’s impressive sale of 3 million new energy vehicles, beating industry stalwarts such as Tesla, underscores its ascent as a major competitor in the EV market.
As the world’s largest EV manufacturer, BYD is not resting on its laurels. The company is investing $1.4 billion in constructing its first sodium-ion battery plant, targeting an ambitious 30 GWh annual capacity. Moreover, having already overtaken Tesla in EV production, BYD is looking to become a frontrunner in battery innovation. It is renowned for its Blade Battery technology, which top automakers, including Tesla and Ford, utilize. Furthermore, BYD’s proactive engagement with lithium producer Sigma Lithium (NASDAQ:SGML) highlights its strategic expansion plans in the battery sphere.
NextEra Energy (NEE)
NextEra Energy (NYSE:NEE) is a leading U.S.-based energy business, gaining traction in the battery stocks arena, mainly through its commitment to renewable energy. The company’s substantial investments in energy storage solutions are particularly important, as these systems are imperative in balancing supply and demand in renewable energy networks, ensuring a reliable electricity supply.
NextEra Energy is on a path towards growth, maintaining its adjusted EPS forecasts for 2023 to 2024 ($2.98 to $3.13 for 2023 and $3.23 to $3.43 for 2024) while projecting a 6% to 8% increase for 2025 to 2026, with EPS estimates between $3.45 and $4. Complementing its growth trajectory, the company aims to boost dividends by approximately 10% annually through at least 2024. To reinforce its commitment to renewable energy, NextEra recently agreed to sell its South Texas natural gas pipelines to Kinder Morgan for $1.82 billion. This sale signifies NextEra’s shift towards greener energy and cements its position as a stalwart in the energy market.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) has drifted out of the spotlight of late, facing investor backlash amidst a sharp drop in lithium prices. Contrary to the market’s current stance, this scenario is a golden opportunity for investors to accumulate shares for the long haul. Moreover, with a market cap of about $734 million, Lithium Americas’ Thacker Pass project starkly contrasts with its $5.7 billion net present value, my fellow InvestorPlace colleague Faisal Humayun noted.
What’s noteworthy is the financial readiness of this asset for construction. First, there was the eye-catching $650 million investment from General Motors (NYSE:GM) in two tranches. Furthermore, this financial backing solidifies the project’s viability and reassures investors of its imminent fruition. As Lithium Americas edges closer to commencing production, the latent potential of LAC stock is likely to be unleashed. Analysts at Tiprank’s predict a 148% upside from current levels for LAC stock.
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 InvestorPlace.com Publishing Guidelines.