Top Battery Stocks to Watch Amid EV Sector Challenges
In May 2024, amidst a challenging backdrop for battery stocks due to a slowdown in demand for electric vehicles (EVs) and a sell-off in battery stocks over the past year, InvestorPlace highlights three top battery stocks poised for potential growth. Despite the recent downturn, the long-term outlook for the battery sector remains positive, driven by the ongoing trend towards electrification and a resurgence in the lithium market, with prices of the shiny metal seeing double-digit gains this year.
Lithium Americas (NYSE:LAC) emerges as a standout opportunity in the lithium mining space, despite a roughly 30% decline in its stock year-to-date (YTD). The company is advancing its Thacker Pass Project in Northern Nevada, aiming for full production and expecting to recover $3.9 billion worth of lithium. With a $2.26 billion financing commitment from the U.S. Department of Energy and a $650 million investment from General Motors (NYSE:GM), Lithium Americas is well-positioned for growth.
Solid Power (NASDAQ:SLDP) is highlighted as a promising player in the solid-state battery market, a technology that could revolutionize the EV sector with its superior charging speeds, safety, and energy density. Backed by automotive giants BMW (OTCMKTS:BMWYY) and Ford (NYSE:F), Solid Power has made significant progress, with its stock gaining 30% in the past six months.
Toyota (NYSE:TM) is recognized for its strategic approach to EVs and solid-state battery technology. The automotive giant’s stock has surged nearly 27%, outperforming the S&P 500’s 7.5% return. Toyota plans to invest $13.6 billion in solid-state batteries, targeting a 2027 release with features like 10-minute fast charging and ranges up to 750 miles. This investment aims to enhance vehicle range and efficiency while reducing costs by 50% by the late 2020s, positioning Toyota as a key player in the future of electrification.
These companies represent strategic investments in the evolving battery and EV markets, offering potential for significant returns as the sector navigates its current challenges and capitalizes on long-term growth trends.
