Trends in stocks to buy now? 3 stocks of EV batteries to know

Electric vehicle (EV) battery stocks have been a hot topic in the stock market for the past couple of years. Naturally, as trends in electric vehicles continue to accelerate, companies that supply any of the basic components will follow suit as well. The traction the industry is pulling right now is due to huge growth in demand for electric vehicles. Well, even President Joe Biden is showing great support for the industry. We have seen the President set a target of more than 50% of vehicles sold in the country to be electric vehicles by 2030. That said, the demand for batteries for electric vehicles could soar.

Yesterday we also saw Ford(NYSE: F) CEO Jim Farley said the company needs more batteries for its electric vehicles than semiconductor chips. Now, this is a statement that should not be taken lightly considering the impact of the semiconductor chip shortage on the auto industry. The comments came after the company halted customer reservations for its electric version of the F-150 after reaching 200,000 units.

With all that is said and done, this shouldn’t be a long term concern as we are slowly seeing the emergence of more and more EV battery companies. These include the likes of Solid power, which debuted yesterday. Elsewhere, commercial technology company EV Proterra (NASDAQ: PTRA) went public earlier this year. In short, Proterra has multiple partnerships where it provides its battery technology to buses, trucks and even forklifts. Under these circumstances, would you be interested in a list of the top EV battery stocks on the stock market today?

Best EV battery stocks to watch out for right now

Solid power

First, we have the newcomer to the EV space, Solid power. The company is a developer of next-generation solid-state battery technology. She believes the future of the auto industry will revolve around clean, sustainable and battery-powered mobility. SLDP stock debuted on the stock exchange yesterday after the completion of a PSPC merger. It should be noted that Solid Power counts Ford and BMW as its main investors. And they could be the company’s first customers in a year or two.

As the company goes public at a time of market volatility, CEO Doug Campbell doesn’t seem to be concerned about that. He said, “We are focused on developing and bringing to market a viable product. So in my opinion, what the stock does over the next six or 12 months doesn’t make sense in terms of getting our product to market.

Now let’s take a look at what sets Solid Power apart from other manufacturers of electric vehicle batteries. Solid-state batteries do not use liquid electrolytes found in conventional lithium-ion batteries, which are widely found in most electric vehicles. To emphasize, Solid Power’s batteries could potentially be safer and lighter while providing more range at a lower cost. Not to mention, the company claims that solid-state batteries can be manufactured in the same way as lithium-ion batteries. This would allow automakers to easily switch to solid-state batteries. With that in mind, would you consider investing in SLDP stocks?

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QuantumScape

Then we will examine QuantumScape. The company is developing battery technology for electric vehicles and other applications. It mainly focuses on the development and commercialization of lithium-metal semiconductor batteries. As one of the leaders in the development of next generation batteries for electric vehicles, the company has a mission to revolutionize the industry for a sustainable future.

In October, the company announced an independent third-party lab test report on the performance of its solid-state lithium-metal battery cells. In Mobile Power Solutions’ test, the company’s single-layer cells met all automotive requirements. The batteries performed over 800 cycles at 25 ° C, charge / discharge rates of 1 ° C (one hour), 100% depth of discharge, and 3.4 atmospheres of pressure. Coincidentally, these results are consistent with those initially reported by the company in its Battery Showcase presentation in December 2020.

In addition, Quantumscape also announced that it had partnered with a major automaker to evaluate prototypes of its solid-state battery cells in September. In light of this, the company has now hit all of its targets for 2021 ahead of schedule. These are encouraging signs that growing companies within the industry would present as they demonstrate their ability to execute their goals in a timely manner. The company now intends to focus on its goals for 2022 and 2023, including further improvement in quality, consistency and number of layers for cells. Given its progress, is it a good time to jump on the QS actions bandwagon right now?

QS stock chartSource: TD Ameritrade CGU

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Charging point

Unlike the two previous companies on the list, Charging point does not manufacture batteries. But having powerful batteries is no good if you can’t charge them easily. And that’s where ChargePoint comes in. It develops and markets networked EV charging system infrastructure and cloud-based services. ChargePoint operates one of the largest electric vehicle charging networks in North America and Europe. Additionally, it provides additional subscriptions that provide an open platform that integrates with hardware from other manufacturers. The company also offers home charging solutions.

Earlier this week, ChargePoint announced its third quarter financial update. Well, it was yet another strong quarter as the company continues to capture growing demand for charging from customers bracing for an electric future. In short, the company achieved revenue of $ 65 million, up 79% year-on-year. Whose network charging revenue was $ 47.5 million, more than double that of the previous year quarter.

Its strong third quarter was also accompanied by two successful acquisitions. These were the European supplier of electric mobility technologies and the utility vehicle management supplier ViriCiti. To top it off, ChargePoint also announced that it will increase its revenue forecast for the entire year to $ 235 – 240 million. Overall, ChargePoint appears to be heading in the right direction. So, would you consider adding CHPT shares amid its recent decline?

CHPT stock chartSource: TD Ameritrade CGU


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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


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