The global automotive industry is marching rapidly, significantly emphasizing carbon neutrality. Consequently, the pivotal role of electric vehicles (EVs) cannot be overstated. Among the movers and shakers in this green revolution are the top EV battery companies. The race is heating up, with EV battery demand projected to skyrocket by 30% per annum globally till 2030, as per a McKinsey and Company report.
These batteries are the heart and soul of EVs, and companies globally are looking to enhance their efficiency while ensuring affordability. Moreover, several potential game-changers in the EV battery stocks market are looking to refine battery technology.
Investing in EV battery stocks could be a savvy move in the unfolding narrative of a blooming EV market. As you read along, you’ll find the best EV battery stocks, presenting an enticing prospect for those eager to ride this wave of electrifying potential.
Panasonic (PCRFY)
Panasonic (OTCMKTS:PCRFY) is one of the most promising bets in the EV battery realm. Its prospects look mighty promising at this time, mainly due to its partnerships with EV pioneer Tesla (NASDAQ:TSLA). The firm is a key supplier of batteries for the EV giant and is poised to leverage benefits from the Inflation Reduction Act, courtesy of its existing EV battery plant operational in the U.S. and its pipeline of upcoming manufacturing facilities.
Moreover, it aims to amplify the energy density of its EV batteries by a staggering 20% by 2030, potentially giving it an edge over its competition. Although critics might point out that Panasonic no longer holds exclusivity as Tesla’s battery supplier, the company has forged a promising joint venture with Toyota (NYSE:TM). This partnership includes a manufacturing facility in Japan, coupled with Panasonic’s portfolio of solid-state battery patents, and it has positioned itself for long-term expansion.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) is a pivotal EV battery player, offering an exciting long-term investment opportunity. The construction of its blockbuster Thacker Pass lithium mine, the largest lithium deposit in the U.S. and the second largest globally, kicked off in March. This prodigious site, backed by a massive $630 million investment from automotive titan General Motors (NYSE:GM), promises an average annual EBITDA of a whopping $1.18 billion.
Moreover, the firm is gearing up for operations in the latter half of 2023, significantly boosting its growth trajectory. Moreover, the company’s active involvement in Argentina, with imminent lithium production at the Cauchari-Olaroz site and a potential construction decision at Pastos Grandes Basin by the fourth quarter, underpins its promising outlook. Additionally, the firm plans to separate its U.S. and Argentine operations to unlock greater long-term value for its shareholders.
Solid Power (SLDP)
Solid Power (NASDAQ:SLDP) is making waves with its ambitious goal to produce the next-generation of EV batteries called the ‘forever battery’. These batteries are safer and more cost-effective than traditional lithium-ion batteries. The firm is a front-runner in producing powerful solid-state batteries and is effectively shaping the future, making it a hot prospect in its sector.
Adding clout to Solid Power’s momentum are big names in the automotive realm in, Ford (NYSE:F) and BMW. Its powerful cell designs and manufacturing prowess are licensed to BMW for parallel R&D activities, further underscoring its promising trajectory. SLDP’s SP2 electrolyte production facility has been commissioned in the past few quarters. It is on track to dispatch A-sample EV cells for validation testing to automotive partners by the end of the year. Furthermore, it is bolstered by a robust cash cushion, having enough liquidity to last the next 12-18 months, solidifying its footing in the competitive battery market.
Moreover, the solid-state battery market was valued at over $595 million in 2022 and is forecasted to surge at a compound annual growth rate (CAGR) of more than 37.5% from 2023 to 2032.
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