With greater demand for electric vehicles, we’re also seeing substantial demand for batteries and related battery stocks to buy.
In fact, according to The Boston Globe:
“Across the United States, at least $100 billion has been invested or promised for EV battery plants, stoking economic development dreams from Michigan to Texas, from the Carolinas to Nevada and California … EV battery plants have become to the 2020s what international car plants were from the 1980s through the 2000s.”
In addition, increasing EV Sales are driving up global demand in batteries. The U.S. and Europe saw the fastest growth, increasing demand for lithium and other critical metals. Analysts predict this could create a $508.8 billion global battery opportunity by 2033.
That’s why you may want to accumulate battery stocks on the cheap. Here are three battery stocks to buy that investors should consider today.
Solid Power (SLDP)
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After bottoming out around $1.10 earlier this year, Solid Power (NASDAQ:SLDP) ran to a high of $2.07. Now trading at $1.77, it’s attempting to pivot higher from support. From here, I’d initially like to see it retest $2.07. Longer term, I’d like to see it closer to $3.
Helping, analysts at Bernstein say recent Chinese tariffs will have an impact on the U.S. battery supply chain, and create opportunity. “Those tariffs will benefit the U.S. battery supply chain, where demand is expected to grow at a compound annual growth rate of 25% to 30%, according to Bernstein,” as noted by CNBC.
Recent earnings weren’t too shabby. In its first quarter, its earnings per share loss of 12 cents did miss by three cents. However, revenue of $5.95 million — up 57% year over year — beat by $1.12 million.
As noted by InvestorPlace contributor Faisal Humayun:
“It’s also worth noting that the company delivered A-1 sample cells to automotive partners in 2023 for validation testing. This year, the company focuses on A-2 cells with planned improvements from the previous version. Positive results from validation testing can trigger a big rally for SLDP stock.”
Amplify Lithium & Battery Technology ETF (BATT)
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You could also jump into an exchange-traded fund (ETF), like the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT).
With an expense ratio of 0.59%, the BATT ETF provides exposure to global companies that develop, produce and use lithium battery technology — all for less than $10 a share. BATT ETF has 89 holdings, including Tesla (NASDAQ:TSLA) and Albemarle (NYSE:ALB).
Just recently, the BATT ETF ran from about $8.74 to a recent high of $9.49. Near term, I’d like to see the ETF initially challenge $10.71 again. From there, I’d like to see it rally back to $14.
This is a hot ETF that could double, even triple, when lithium prices and related stocks start to push well off their low. While simplistic to say, it’s only a matter of time before lithium recovers and takes the BATT ETF along for the ride.
Albemarle (ALB)
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As battery demand increases, lithium producers like Albemarle are only going to benefit more and more.
Albemarle is the lithium industry’s 800 lb. gorilla. However, ALB is still cheap. It just announced a dividend of 40 cents, which will be payable on July 1 to shareholders of record as of June 14. And it’s one of the top beneficiaries of the lithium boom.
Statista recently predicted that by 2030, global demand for lithium will pass 2.4 metric tons, which doubles the demand forecast for 2025. By 2035, they added, demand could reach 3.8 million tons. Then, by 2040, lithium demand could increase 40 times over with expectations for increased EV adoption and energy storage needs.
From its current price of $127.76, I’d like to see ALB closer to $200 near term.
On the date of publication, Ian Cooper did not hold (either directly or indirectly) any positions in the securities mentioned. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
