Tesla led the charge for electric vehicles (EVs), and more car companies are incorporating electric vehicles into their line-ups. Those cars and trucks require EV batteries. As the demand for electric vehicles grows, companies producing EV batteries are likely to get more orders, presenting an opportunity for investors. Individuals who want EV battery stocks in their portfolios may want to consider these eight picks.
8 Best EV Battery Stocks Right Now
The EV industry is growing, and batteries are core components that aid EV growth. Investors looking to profit from EV batteries may want to scoop up these stocks.
| Ticker | Company | ±% | Price | Invest | ||
|---|---|---|---|---|---|---|
1. Panasonic Holdings (OTCMKTS: PCRFY)
Panasonic has partnered with Tesla for several years to provide EV batteries. The company has multiple factories in the U.S. where it produces EV batteries. Shares have jumped by over 40% year-to-date. Panasonic is a profitable company with a 15 price-to-earnings (P/E) ratio and a 1.80% dividend yield.
2. BYD Co. (OTCMKTS: BYDDY)
BYD stock has rewarded investors with a 32% year-to-date gain. The Chinese-based company manufactures its own electric vehicles, but it also sells EV batteries and semiconductors. The company is positioned to benefit from its own vehicles and the rising demand for EV batteries. Warren Buffett holds a large stake in the company.
3. Nano One Materials Corp. (OTCMKTS: NNOMF)
Nano One Materials Corp has returned over 50% year-to-date for investors. The company produces critical cathode active materials that EV batteries need to function. Nano One Materials Corp technology can boost battery capacity, charge and cycling at lower costs. The company is a speculative EV battery stock with a market cap of a little above $250 million. Shares have more than doubled over the past five years.
4. Solid Power Inc. (NASDAQGS: SLDP)
Solid Power is a speculative EV battery stock that has gained 28% year-to-date. The company does not yet have a commercialized battery, but its partnership with BMW may get it across the finish line sooner. The battery can enable longer distances for EVs and make them less expensive.
5. Honeywell International Inc. (NASDAQ: HON)
Honeywell is an industrial conglomerate that has several business segments, including EV batteries. The company offers sensor and safety solutions for electric vehicle and EV battery manufacturers. The stock is barely down year-to-date but has gone up by 48% over the past five years. The company has a 27 P/E ratio and a dividend yield approaching 2%.
6. Albemarle Corp. (NYSE: ALB)
Albermarle produces lithium and other essential elements for EV batteries and other business verticals. ALB stock is only up by 11% year-to-date but has gained 150% over the past five years. The company pays a dividend yield below 1%, but some dividend is better than none. The P/E ratio is reasonable at a little under 8. Albermarle has had a few strong quarters lately, including the most recent quarter. In Q1 2023, the company reported a revenue increase of 129% year-over-year and net income growth of 334% year-over-year.
7. Microvast Holdings Inc. (NASDAQ: MVST)
Microvast is another speculative EV battery stock. The company has a $750 million market cap, and shares have jumped by 68% year-to-date. Microvast designs, develops and manufactures EV batteries. The company recently expanded its Colorado energy division to increase capacity. The company strives to position itself as a leader in the lithium-ion battery manufacturing industry.
8. QuantumScape Corp. (NYSE: QS)
Many EV battery stocks are speculative, and QuantumScape is no exception. The company’s stock is up by over 80% year-to-date and has a $4.5 billion market cap. QuantumScape develops solid-state EV batteries. The company’s batteries can deliver enhanced safety and quicker charges for electric vehicles.
What is an EV Battery Stock?
EV battery stocks are investments that stand to benefit from the rising demand for electric vehicles. These vehicles need advanced batteries to run effectively, and an affordable battery can make EVs more affordable for consumers. Some EV battery stocks produce EV batteries, while others produce vital materials or provide services that are critical for EV battery manufacturers.
Why Invest in EV Battery Stocks?
EV battery stocks cater to investors who are bullish on electric vehicles. More automotive companies are experimenting with electric vehicles, and growing demand will require more EV batteries. Companies that produce these batteries or have access to the raw materials may stand to benefit from the rising demand for electric vehicles.
Where to Invest in EV Battery Stocks
Investors can choose from several brokerage firms to start investing in EV battery stocks. Here is a list of top brokers to consider.
Do EV Battery Stocks Make Sense for Your Portfolio?
Some EV battery stocks are speculative, while other EV battery stocks use electric vehicles as one of their business segments. Risks vary based on which EV battery stocks you consider, but it is important to assess your portfolio and financial goals before committing to an investment.
Frequently Asked Questions
Q
Who makes EV batteries for Tesla?
A
Tesla partners with several companies for EV batteries, but Panasonic is the top partner.
Q
Which company is best for EV battery making?
A
Investors should assess several EV battery companies and decide which one makes sense for them based on their financial goals.
Q
Where do EV batteries come from?
A
Most EV batteries come from China, but the materials required to produce EV batteries are spread out in different parts of the world.
Best EV Battery Stocks Methodology
The methodology for this list involved looking at EV stocks that rewarded investors year-to-date or over the past five years. This list featured a mix of profitable companies where EV batteries are a segment of a larger conglomerate, along with pure EV battery investments that have greater risk but also a higher potential reward.
