There is no denying the fact that the world is moving towards electrification and our roads are going to see many more electric vehicles (EVs) in the coming years. Demand for EVs is on the rise and governments are going all out to encourage their production and the adoption. Besides the EV industry, it is the EV battery industry that is going to thrive in the coming years. This means it is time to look for the battery stocks with high potential.
Smart investors are always on the lookout for industries that have massive upside potential. Investing in battery stocks at the current level will mean solid long-term growth and profits. There aren’t too many battery makers in the industry but there are a few which are making strong moves and have an impressive market share. With that in mind, let’s take a look at the three battery stocks to buy with massive upside potential.
smartphone with logo of Canadian company Lithium Americas Corp on screen
Source: Wirestock Creators / Shutterstock.com
Lithium Americas (NYSE:LAC) will benefit from the EV boom and become one of the best battery stocks. Automakers are taking strides to electrify their fleet, which will result in a jump inlithium stocks. LAC is trading at just over $20 today and is up 17% year to date. It is much lower than the 52-week high of $33.
The company is currently working on building assets that will become a steady source of revenue in the coming years. Lithium Americas has begun construction at theThacker Pass Project and the production is due in 2026. Thacker Pass having the largest lithium deposit in the country and the second largest in the world leaves me optimistic. This project has the potential to unlock significant value over the next few years.
Lithium Americas has also created Lithium Argentina, which could lead to massive value in the long run. It has two sites in Argentina and one has startedinitial production as part of commissioning this month while the other will begin construction by the fourth quarter.
This stock certainly has the potential to double once its sites start operations. Yes, the stock might look volatile at the current level and it carries a small amount of risk as well but it has a massive upside potential. I recommend it as one to own if you want to make the most of the EV boom.
BYD (BYDDY)
BYD Company Limited logo in front of their website. BYDDY stock.
Source: T. Schneider / Shutterstock
Warren Buffet’s BYD (OTCMKTS:BYDDY) is seeing soaring profits and sky-high growth rates. But this is only the beginning for this EV maker. What sets the company apart from the rest is the massive battery market it caters to in China. It is thesecond-largest battery producer in the world. With the world moving towards EVs, the demand for batteries will be on the rise, and BYD is solidifying its position.
The company caters to international markets and is working on expanding the production of lithium iron phosphate Blade batteries. Holding a strong position in the market today, BYDDY stock is trading at $68 and looks highly undervalued to me. This is one stock that has the potential to double very soon. A Tesla (NASDAQ:TSLA) competitor, the company delivered552,076 new energy vehicles in the first quarter. Tesla is already usingBYD batteries in its cars and this is proof of the quality that the company offers.
The company recently announced a new brand of EVs that will consist of off-road vehicles and sports cars. This brand will be known as Fang Cheng Bao and the first model is expected to launch later this year. It is also set to roll out five new models in France. It aims to build 15-20 points of sale by the end of this year. The company’s delivery numbers are proof that it has a massive market to cater to. With the launch of new vehicles, it will continue to expand its market share. BYD is one of the best high return battery stocks to buy.
Solid Power (SLDP)
Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.
Source: T. Schneider / Shutterstock.com
There is a reason for including this penny stock in the list. Solid Power (NASDAQ:SLDP) looks like the best bet here since it has the potential to triple in the coming years. The company is in the process of commercialization of solid-state batteries but it will take some time. However, it is on the right path. The company has an interesting product, it aims to build the next generation of EV batteries known as forever batteries and it will be much safer and cost-effective as compared to lithium-ion batteries. However, it is under process and if the company manages to deliver what it has promised, it can change the future of the EV industry. This is what makes SLDP one of the emerging battery stocks with upside potential.
SLDP stock is trading at $2.36 today and is up 24% in the last month. SLDP is certainly one of the top battery stocks to buy.
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On the date of publication, Vandita Jadeja did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Vandita Jadeja is a CPA and a freelance financial copywriter who loves to read and write about stocks. She believes in buying and holding for long term gains. Her knowledge of words and numbers helps her write clear stock analysis.
