By Ali Hassan
12:59 AM UTC
Electric vehicles are the new version of automobiles and they’ll surely be big game-changers. EV batteries, a key component of the EV industry, will remain in high demand in the coming years, as will EV battery stocks. EVs deliveries are growing every month. Companies are now focusing on developing more reliable and convenient batteries for these cars.
Investing in EV stocks is the most obvious way to enhance your portfolio in the sector. The other option is to invest in companies that supply the batteries.
Batteries are the heart of EVs and battery stocks hold a pivotal status in the market.
Solid Power (SLDP) develops all-solid-state battery cells for electric vehicles and mobile power markets in the United States. Its shares made a big move in Dec. last year following a merger with Decarbonization Plus Acquisition Corp III. This really amazed the investors, however, it seemed to have a short time effect on the news. The other side of the picture shows long-term development and that’s where SLDP’s growth is based.
Solid Power’s key asset is its low cost at which it manufactures all-solid-state battery cells. It’s been just a decade since its incorporation in 2011. The company is already the industry leader in all-solid-state rechargeable battery technology. That puts them in a dominant position to capture a larger market share in the future.
In recent months, SLDP has made headlines as a result of new contracts and partnerships that have expanded its solid-state battery business. In October 2021, the company closed a $12.5 million multi-year research contract with Intelligence Advanced Research Projects Activity. Solid Power will develop nickel and cobalt-free all-solid-state battery cells for its customer. At the same time, the company signed an agreement to co-develop all-solid-state batteries with the Korean chemical company, SK Innovation.
These are a couple of great developments for the company that will boost its revenue. But it will have larger consequences in the long-term, which is attracting more customers. Solid Power is striving to reinvent its products to match the expanding EV sector. Therefore, SLDP Ev battery stocks seem a promising buy in the battery segment.
General Motors (GM) is a leading name in the automobile industry and the company needs no introduction. The company has facilities worldwide and is well into the game-changing EV market. Although it is an iconic brand, many people do not think of GM when discussing electric vehicles or Ev battery stocks.
GM is evolving with the times. If you’re looking for a way to invest in electric cars, look no further than General Motors. The company is looking forward to investing around $6.6 billion in Michigan over the next decade. The target is to invest massively into the electric battery plant and increase pickup truck production.
The company plans to open a new facility in North America in 2024. GM said the plant will process critical battery materials known as cathode active material, for their electric vehicles.
Strong on the financial side, GM seems a great investment option among EV battery stocks.
BYD, (BYDDF) the Chinese EV manufacturer, is well into the battery game. The company mainly manufactures and sells hybrid and electric vehicles. However, it also builds batteries and semiconductors used in its EVs.
BYD is launching Blade Battery which will mitigate the concerns about battery safety in EVs. The Blade Battery will resolve issues in battery safety while also redefining safety standards for the entire industry.
BYD’s battery is under development for many years now.
BYD has an optimized battery pack structure, which increased the space utilization by almost 50% compared to traditional lithium iron phosphate block batteries. That gives a competitive edge to the company with this battery technology.
Toyota has reportedly partnered with BYD to build a new affordable electric car to launch this year. The electric vehicle is going to be powered by BYD’s blade battery cells with LFP chemistry. If the deal gets the final shape, this is really going to be a big thing for the Chinese EV maker.
The improving prospects reflect that BYDDF does have good Ev battery stocks to buy.
Tesla, (TSLA) so far, is only known for its thriving EVs. The electric vehicle giant is working deeply on the sustainable future of the EV industry. For that, they are working hard to sort battery problems and requirements.
On top of that, to meet the rising demand for batteries, Musk’s company has set up a gigafactory. Tesla’s Gigafactory is one of the world’s biggest EV development sites that will be able to support the company’s growing demand for EVs. The Gigafactory produces Model 3 electric motors and battery packs. Moreover, it is also producing energy storage products including Powerwall and Powerpack.
In mid-2018, Tesla’s battery production reached an annualized battery production rate of almost GWh at Gigafactory 1. That made it the highest-volume battery plant in the world. Tesla has the biggest network of battery production in terms of kWh compared to any other car marker combined.
At the moment, the Gigafactory is about 30% done. Tesla’s Gigafactory will be the world’s biggest building which will be entirely powered by renewable energy sources. Tesla’s batteries will make the biggest difference for its EVs that will lead the market in the future.
There, TSLA as an EV battery stock can be a solid investment option.
Microvast Holdings (MVST) designs, develops and manufactures lithium-ion battery solutions. Founded in 2006, the company went public in July 2021 through a merger with Tuscan Holdings. Through this deal, Microvast claimed almost $700 million in cash to fund its future growth.
The company is spending heavily on growing. Microvast noted it expects to incur $120 million to $150 million in capital expenses in 2021. That’s a significant amount for a company on track to generate between $145 million to $155 million in annual revenue. This represents 42% growth compared to $108 million for the fiscal year 2020.
Microvast’s investments will enhance its battery production capacity and expand its range of battery solutions so it can tap into a large and growing market. The company looks in great shape, carrying this positive momentum into 2022 as they continue on their electrification journey.
All in all, MVST is a good stock to buy in the EV battery stocks.