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3 Battery Stocks To Buy Now OR You’ll Kick Yourself Later


Source: Sergi Tchernov / Shutterstock.com

Now is a good time to stock up on underpriced, quality electric vehicle battery inventory. On the one hand, the global auto industry is investing more than a trillion dollars in electric vehicles. Second, world leaders are racing to put millions of electric vehicles on the roads. For example, President Biden wants electric vehicles to make up at least 50% of cars sold by 2030. Third, the growing demand for electric vehicles will only strengthen the battery market. In fact, according to Next Move Strategy Consulting, “The global battery market generated $124.88 billion in 2022 and is expected to generate $406.08 billion by 2030.” That being said, I went looking for some of the best battery stocks to consider today, including:

PCRFY panasonic $8.82
SLDP Solid power $3.08
QS QuantumScape $8.01

Panasonic (PCRFY)

An image of a neon EV battery;  energy;  energy storage.  Battery stock.

Source: Illus_man/Shutterstock

panasonic (OTCMKTS:PCRFY) is among the best battery stocks to buy. The stock trades at an attractive price-earnings ratio of 11.3 and offers a dividend yield of 2.5%. With big investments in new battery factories, Panasonic is well positioned for growth. Panasonic is building a $4 billion battery factory in Kansas. Additionally, the company will invest an additional $4 billion in a battery plant in Oklahoma.

Even better, Toyota (NYSE:MT) and Panasonic are looking for a site to build a new battery factory in Japan. Panasonic has also been ahead in terms of innovation. Investing in research will help the company retain or potentially gain global market share. The company currently holds 445 solid-state battery patents. A positive development on this front is another key catalyst for the rise in equities.

Solid Power (SLDP)

Battery and wire installed on eco car engine electrical system.

Source: Shutterstock

Beaten shares Solid power (NASDAQ:SLDP) have become oversold. However, there are positive developments to come. On the one hand, the US Department of Energy has allocated $5.6 million to Solid Power for the development of efficient EV batteries. The funding will help the company step up its research and development efforts.

In addition, late last year, Solid Power agreed to license its cell design and manufacturing process to BMW (OTCMKTS:BMWYY). This expanded agreement has the potential to help accelerate the commercialization of solid-state batteries. Also, it should be noted that Solid Power has already launched a pilot line of EV cells. The company will provide EV cells to automotive partners in the first half of 2023 for testing.

QuantumScape (QS)

QuantumScape HQ QS stock entrance

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QuantumScape (NYSE:QS) is another interesting name to consider with big catalysts coming as well. For example, the company just announced that it has shipped its prototype 24-layer lithium-metal battery cells to automotive OEMs for validation testing. Moreover, volkswagen (OTCMKTS:VWAGY) is an investor and joint venture partner. Commercialization may still be a few years away, but this is an important step that has boosted investor confidence.

QuantumScape also plans to commercialize its technology beyond the automotive sector. Consumer electronics is another targeted market. With a large addressable market, the long-term growth prospects are strong. From a financial perspective, QuantumScape is expected to enter 2023 with $1 billion in cash. Therefore, there are enough funds to invest in research and development. The company already has 300 patents and patent applications.

As of the date of publication, Faisal Humayun does not hold (either directly or indirectly) any position in the securities mentioned in this article. The opinions expressed in this article are those of the author, subject to InvestorPlace.com publishing guidelines.

Faisal Humayun is a senior research analyst with 12 years of experience in credit research, equity research and financial modeling. Faisal is the author of over 1,500 stock-specific articles focused on the technology, energy and materials sectors.

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