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Wednesday, September 28, 2022

7 Battery Stocks That Could 10X by 2030

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Similar to other equities, battery stocks have taken quite a beating this year. Nonetheless, it remains a rapidly growing industry poised to deliver multi-bagger returns once the markets mount a comeback in the coming months.

With the massive growth potential of the renewable energy market, investors are looking for various ways to get in on the action. Investing in battery stocks is perhaps the best starting point, as battery technology offers incredible utility across the broad spectrum of renewable energy.

EV battery stocks are perhaps the ideal move for investors who are looking to capitalize on the green energy revolution. Over the years, EV stocks have been one of the most volatile investment options in the market but have also performed the best. The EV sector remains a colossal, long-term growth opportunity, while battery stocks are perhaps the best play in the burgeoning sector.

According to Grandview Research, the global battery market was worth a whopping $108.4 billion in 2019 and is expected to soar at a CAGR of 14.1% from 2020 to 2027. Therefore, there’s much to be excited about in the battery sector.

PCRFY Panasonic Holdings $7.94
BYDDY BYD Company $56.02
SLDP Solid Power $6.24
QS QuantumScape $11.22
HON Honeywell International $179.00
LAC Lithium Americas $29.43
FREY Freyr Battery $13.56

Panasonic Holdings (PCRFY)

A Panasonic (PCRFY) sign hanging in Beijing, China. generation z

Source: testing/Shutterstock.com

Panasonic Holdings (OTCMKTS:PCRFY) is an undercovered gem among battery stocks to buy. It plans to transition its business to green energy and batteries down the road, becoming one of the leading names in the battery industry.

Its stock has shed a fair share of its value in the last few months, and perhaps it’s an ideal time to load up on the stock for the long-term.

The firm already operates a lithium-ion battery factory in the U.S. along with EV giant Tesla Tesla (NASDAQ:TSLA). Additionally, it plans another factory in Kansas. Panasonic also is involved in developing a multi-billion dollar plant in North Carolina with Toyota.

These investments will significantly expand its U.S.-based operations. As we advance, Panasonic plans to focus on developing cobalt-free batteries and increasing battery density by 20% by the end of the current decade.

BYD Company (BYDDY)

Illustration of an electric car charging outside of a city with wind turbines in the background; EV

Source: petovarga / Shutterstock

BYD Company (OTCMKTS:BYDDY) is a diversified Chinese EV maker with multiple competitive advantages over its peers. Perhaps the biggest is that it produces its own batteries, unlike most of its peers.

Any chance to streamline production is of incredible long-term value in today’s challenging environment. Additionally, the firm reached an agreement in June to supply Tesla with its batteries.

BYD believes that its blade battery will set the standard for EV safety standards. Moreover, its market share is likely to grow with multiple vehicle brands in discussion for long-term partnerships.

Additionally, BYD has established itself as one of the leading EV brands in China and stands to benefit from the sustained demand for vehicle deliveries. Hence, BYDDY stock remains a remarkable long-term bet in the EV space.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.

Source: T. Schneider / Shutterstock.com

Solid Power (NASDAQ:SLDP) is a Colorado-based startup aiming to commercialize solid-state batteries. Unlike traditional lithium-ion batteries, solid-state batteries come up with solid electrolytes, which can significantly expand a battery’s energy density while making it less costly.

In June this year, it was reported that Solid Power commenced pilot production of solid-state batteries and could begin mass production by 2024.

SLDP has the backing of two of the biggest automotive giants in Ford (NYSE:F) and BMW (OTCMKTS:BMWYY). Unlike QuantumScape, its top competitor. Solid Power expects to generate revenues by the conclusion of this year. It aims to increase production capacity to 30 metric tons this year and to reach a capacity of 6,000 metric tons within the next four years. 6,000 metric tons could cater to a whopping 100,000 EVs.

QuantumScape (QS)

A sign for QuantumScape (QS).

Source: Michael Vi / Shutterstock.com

QuantumScape (NYSE:QS) is arguably the leader in the development of solid-state batteries. Its batteries are being touted as catalysts for the next generation of EVs.

Production of these batteries is still years away, but once it can produce them on a mass scale, it is poised to become a juggernaut in space. QS stock has witnessed a deep correction of late; perhaps it’s the ideal time to accumulate for the long haul.

QuantumScape completed all its core milestones from last year, including testing its 10-layer cells. It’s now looking to test out multilayered cells with multiple commercial dimensions. QuantumScape has close to $950 million in liquidity, arguably enough to finance its endeavors through 2023.

If its positive developments continue, its stock will likely trend higher in the coming years.

Honeywell International (HON)

Honeywell (HON) logo on front of glass building

Source: josefkubes / Shutterstock.com

Honeywell International (NASDAQ:HON) operates as a highly-diversified conglomerate with multiple business segments. It’s an incredibly well-managed company that continues to reward its shareholders consistently.

It supplies various products and services in transportation, construction, aerospace, and other related segments. Moreover, it recently announced its foray into the battery space and could potentially become a major player down the road.

Honeywell introduced its “flow battery” model last year. It enables utilities to store renewable energy for close to 12 hours. It uses a non-flammable electrolyte that effectively converts chemical energy to electricity for later use while meeting the long-term safety objectives of utilities.

The goal is to deploy a utility-scale project of 60 MW in 2023 and progress towards large-scale production.

Additionally, HON stock is a great income play with an A-graded dividend portfolio. It boasts 11 years of dividend growth, with over 2.2% yield. Its stellar cash flow generation gives it ample wiggle room for future payout boosts.

Lithium Americas (LAC)

Lithium element on the periodic table. Lithium stocks.

Source: tunasalmon / Shutterstock

Lithium Americas (NYSE:LAC) is a Canadian lithium mining player that is poised to become a juggernaut in the sector.

It has been in the construction phase for the past several years and can finally see the finish line with its projects showing massive potential so far.

Its Thacker Pass project has a life of 46 years and could potentially deliver an annual EBITDA of $520 million. Also, its Cauchari-Olaroz project has an annualized EBITDA potential of $308 million.

The Cauchari-Olaroz project is 90% of the way through completion, and LAC is likely to ramp up production next year. The Thacker Pass project should follow suit and help deliver robust cash flows for the business.

The lithium market is expected to rise exponentially in the next several years due to the growing demand for EVs. LAC has the potential to become one of the largest providers of lithium across multiple markets.

Freyr Battery (FREY)

An electric car battery unit.

Source: asharkyu / Shutterstock.com

Freyr Battery (NYSE:FREY) is an up-and-coming battery producer based in Norway. It specializes in the development of long-lasting high power batteries.

Freyr Battery builds batteries and energy storage products for various markets including consumer electronics, EVs, and others. The goal is to provide reliable long-term solutions for these sectors.

Freyr is building its Gigafactory in Norway and aims to increase annual output to over 200 GWh by 2030. Moreover, it recently signed a deal with an energy storage solutions (ESS) firm called Nidec, where it is expected to supply 38GWh worth of batteries from 2025 to 2030.

Additionally, the two enterprises will be creating a joint venture aimed at producing at an industrial scale. Freyr could potentially generate a whopping $3 billion from the deal. Though Freyr is still early in its growth trajectory, it appears it has massive room for expansion as we advance.

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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.

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