Leading battery stocks are set to stand out as the demand for electric vehicles surges. The International Energy Agency predicts that one in every five cars globally will be electric this year, significantly impacting EV battery demand.
In fact, Fortune Business Insights estimates that the global EV battery market could expand from $37.9 billion in 2021 to nearly $98.9 billion by 2029, benefiting these three battery stocks.
A prime investment opportunity in the electric vehicle battery boom lies in lithium stocks, such as Albemarle (NYSE:ALB). Firstly, the company announced a $1.3 billion investment in a new lithium hydroxide plant in South Carolina to address battery demand. Secondly, the facility is expected to generate around 50,000 metric tons of battery-grade lithium, with the capacity to double production.
Thirdly, this output could facilitate the manufacturing of 2.4 million electric vehicles annually. Adding to the potential growth, lithium prices are recovering. Citigroup analysts even suggest that the downturn in lithium prices may have ended, with an anticipated increase of up to 40% by year-end.
Furthermore, Albemarle has now partnered with Ford, providing battery-grade lithium hydroxide for the automaker’s EVs. Under the agreement, Albemarle will supply over 100,000 metric tons of battery-grade lithium hydroxide to power roughly 3 million future Ford EV batteries. The five-year supply contract commences in 2026 and runs through 2030.
Although the chart might not look promising, Solid Power (NASDAQ:SLDP) should not be dismissed. Needham analysts recently reinstated their buy rating for the stock with a $5 price target, referring to SLDP as a “well-funded call option.” Solid Power is also working to strengthen its partnership with BMW (OTCMKTS:BMWYY) through a joint development agreement, which contributed to the company’s $3.8 million revenue in Q1 2023, an increase of $1.6 million YoY.
Moreover, the company has two significant milestones this year: anticipated improvements in key cell performance metrics and the expected delivery of EV cells to partners by late 2023.
Amplify Lithium & Battery Technology ETF (BATT)
With a 0.59% expense ratio, the Amplify Lithium & Battery Technology ETF (NYSEARCA:BATT) offers investors access to international companies involved in lithium battery technology.
As lithium prices recover, the BATT ETF is also gaining momentum. In fact, with the aggressive increase in lithium prices, the BATT ETF has risen from a recent low of $11.60 to $12.59 per share. Moving forward, it would be ideal for the BATT ETF to retest the $14 per share mark.