Human beings are constantly innovating to get better products, better technologies, better everything. A sector that has been attracting the attention of late is that of batteries, solid-state batteries to be precise. As an investor, I asked what are the best solid-state battery stocks?
Innovations in solid-state batteries hold promise that they will be able to overcome some of the limitations in present-day lithium-ion batteries (LI). Many people are excited about the possibilities that solid-state batteries hold and, consequently, the investment prospects in stocks of such battery technology companies.
- 1 Solid-state batteries and their benefits
- 2 12 Best Solid-State Companies
- 2.1 Hyliion (NYSE: HYLN)
- 2.2 Panasonic (OTCMKTS: PCRFY)
- 2.3 AES Corp (NYSE: AES)
- 2.4 Quantumscape (NYSE: QS)
- 2.5 General Motors (NYSE: GM)
- 2.6 Toyota (NYSE:TM)
- 2.7 Ford (NYSE: F)
- 2.8 Albemarle (ALB: NYSE)
- 2.9 Murata Manufacturing (OTCMKTS: MRAAY)
- 2.10 NIO Limited (NYSE: NIO)
- 2.11 Tesla, Inc. (NASDAQ: TSLA)
- 2.12 Lithium Americas Corp. (NYSE: LAC)
- 2.13 Energous Corporation (NASDAQ: WATT)
- 2.14 Solid-State Battery Stocks Compared
- 3 Guidance for investors
Solid-state batteries and their benefits
Lithium-ion batteries used in smartphones and electric vehicles, while reliable, have safety concerns. Not too long back Samsung made news by withdrawing its Galaxy Note 7 because of the potential hazard of the battery exploding and igniting a fire. Conventional LI batteries contain a liquid that is inflammable and hence remain a fire hazard, though all manufacturers adopt safety measures in their products. Solid-state batteries, on the other hand, use solid electrolytes instead of liquid, hence eliminating the major risk present in LI batteries.
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Solid-state batteries used solid electrolytes rather than liquid electrolytes. When they are used in electric cars they can be used with a greater density and longer driving range. Solid batteries can reduce charging time which is increasing adoption by electric car buyers.
Solid rechargeable batteries may save money as these batteries make electric vehicles better-suited to driving. These effects are expected to encourage more people to switch from electric cars to ones with longer distances and cheaper prices. Solid battery use eliminates a fire risk bringing comfort to the manufacturer and consumer. Samsung pulled off the Galaxy Note 7 smartphone after fears it would explode.
With a higher density of energy, solid-state batteries are able to supply power for a longer duration. As a result, your smartphone will need a charge much later and your electric car can go farther on that single charge.
Even the charging time for solid-state batteries gets crunched as compared to LI batteries. One of the challenges in the adoption of electric vehicles has been understood to be the long time needed for a recharge when compared to just a few minutes needed to fill up the tank with fuel. Reduced recharging time could significantly impact electric vehicle adoption.
12 Best Solid-State Companies
The solid-state battery marketplace is populated by a wide variety of players, with start-ups competing for attention with established corporations. In addition to companies with solid-state battery programs, there are many who are jumping on the bandwagon with programs for supplying to the battery makers.
As investors, what are the opportunities for investors and how could they go about their business of investing with the developments taking place in this industry?
I should point out that many of the stocks listed here have taken a drop. This is largely due to the fact that many like NIO were “meme” stocks that climbed high on retail investor trading. Here are some companies to look out for:
Hyliion (NYSE: HYLN)
Hyliion is devoted to offering EV/EV powertrain solutions for Class 8 vehicles. The company claims significant progress has been made in the EV industry. Recent QuantumScape announcement has generated scoff at the possibility of commercialization of these technological breakthroughs. Shares of HYLN were down two months after its announcements were made. Increasing batteries mean improvement of the process that will lead to improvements but investors seem to want to invest in technology making this leap to be able. This brings me back to my best pick in this. So as far as a company’s investors are concerned with Storyscapes and Hylion goes investors appear impatient.
Panasonic (OTCMKTS: PCRFY)
Panasonic could lead in this space by developing an imaging system for solid-state research. They don’t generate heat as much as conventional batteries. Therefore space for cooling equipment can be used in other ways to improve performance overall. While research continues, investors should buy PCRFY shares on the lithium-ion and Nickel-metal battery business units which both are in high demand due to the global transition to net-zero emissions. It is complicated due to the presence of costs limitations and durability concerns that can be imposed. To resolve problems you need to know problems.
AES Corp (NYSE: AES)
The strength of AES stock is evident in that shares of the company doubled since the doldrums that hit March. With a new administration in the job is the optimum time for consideration of that particular green energy operative. Josh Enomoto is a former senior analyst at Sony Electronics has helped broker major contracts with Fortune Global 500 companies. He delivered unique, critical insights in several industry areas including legal, construction management, and healthcare, in the last several years he has produced critical insight on the investment market and on. Green energy has replaced a majority of fossil fuel use with green energy but he was wary of using such fuel.
Quantumscape (NYSE: QS)
It is believed that Quantumscape QS, backed by Volkswagen, one of the largest car makers in the world that has its sights set on producing electric cars, is gradually getting close to the point of commercial production of solid-state batteries with all the background work they have done.
So far known as a maker of batteries for electric cars, QNT’s stock has witnessed an appreciation of over 250 percent in only six months and currently down at $22.77 per share. It is interesting to note that this price is almost 50 percent off the peak it had recently attained.
General Motors (NYSE: GM)
General Motors is scrapping its mediocre tactics and implementing attractive and meaningful initiatives. First off a big push is being made on the EV by the famous automaker’s factory Zero facility solely dedicated to the platform. GM previously committed to 100% renewable energy. All U.S. manufacturing will be operated by 2030. This isn’t GM from a parent, clear it’s a competition for batteries for two reasons: First – utilize the use of renewables to require storage systems, and second – EVs would have. Well, that’s no good GM product for those parents.
The name needs no introduction. Toyota is also one of the biggest car makers in the world. In fact, there appears to be a competition between Toyota and Volkswagen for the top spot.
The Japanese auto giant has its sights firmly set on becoming a leading manufacturer of solid-state batteries. It claims that the battery it has developed for electric cars can be fully recharged in 10 minutes for a driving range of over 310 miles. The research and development they have done in pursuit of their goal have led to Toyota collecting over a thousand patents in connection with solid-state batteries alone.
Its stock has appreciated by 30 percent over the last 12 months, a period that coincided with the Covid-19 impact around the world. It is believed there is an upside potential of over 20 percent at the current level of $183 per share.
Ford (NYSE: F)
Ford is another legacy carmaker ready to make its move towards the electric vehicle. The company sees promise in President Biden’s plan to convert the entire fleet of government vehicles to electric models to make America a net-zero emissions nation. Along with General Motors and Tesla, Ford is likely to be among the biggest beneficiaries of the plan.
Ford’s move in solid-state batteries is through Solid Power, an investee company. Samsung and Hyundai are the other investors in Solid Power. An opportunity exists for Ford’s shareholders to participate in the success of solid-state batteries through its investment in Solid Power.
Ford is trading at $13 per share, which is off its recent peak, but still a 130 percent gain over the 52-week period.
Albemarle (ALB: NYSE)
Solid Power uses lithium in its solid-state batteries. One of the leading global producers of lithium is Albemarle, trading at $158 per share and, like Ford, up by over 130 percent over the same 12-month period. In another similarity, it is off its recent peaks by about 15 percent.
Murata Manufacturing (OTCMKTS: MRAAY)
Murata manufactures are probably not popular in the U.S. It covers a broad range of battery applications, from small electronics to smartphones to energy storage technologies. Murata is not well known but he shouldn’t be ignored. A company is not only focused on electric vehicles but they are also small, incorporating solid-state innovations for the Internet of Things’-based medical wearables. MRAAY has potential for investors because it could be a promising battery-driven battery company focused on solid-state battery research and development.
NIO Limited (NYSE: NIO)
Nio has been one of the most popular electric car companies in the world for the last few years. Since becoming part of a large conglomerate, Nio has started offering buyers a monthly subscription model for its cars that they can use anywhere in the world and that they can buy for less money than competing models.
The firm has been a leading player in the Chinese smart device market. The company is becoming one of the most influential manufacturers in China. The company’s shares are currently trading at $42 after taking a dip.
Tesla, Inc. (NASDAQ: TSLA)
Tesla is one of the most well-known battery manufacturers in the world. The company’s battery technology is extraordinarily efficient and market-leading compared to its competitors. Apart from EVs, Tesla also provides batteries for home and offices, as well as solar panels. Its Powerwall product for home provides energy storage during outages. We expect Tesla to lead the charge in battery technology.
Lithium Americas Corp. (NYSE: LAC)
Lithium is one of the best battery stocks for investors to buy right now. Lithium Americas has 100% ownership of 3.1 million tonnes of LCE at 3,283 ppm Li in the U.S. and 1.5 million Mt at 3,300 ppm Li in Argentina.
The company has also recently started operations in the Jujuy Province in north-western Argentina. The Cauchari-Olaroz reserves, located in Jujuy, are expected to be developed as part of a larger plan for the company.
Energous Corporation (NASDAQ: WATT)
Energous is a leading investor in the advancement of wireless charging technology. In February, Energous and Thin Film Electronics (OTCQB:TFECF) announced a partnership creating a thinner, faster, more efficient wireless charging system for consumer electronics.
The company is focused on the fast-growing wireless charging market. Over-the-air charging is expected to grow at a faster rate than traditional charging. The stock has been added to our list of stocks that are expected to outperform the market.
Solid-State Battery Stocks Compared
Guidance for investors
The global solid-state battery industry is projected to grow to $87.5 billion by 2027. The size of the market was $32.9 billion in 2019. With the increased adoption of electric vehicles, continued expansion of portables electronic devices, solid-state battery manufacturers and their suppliers are looking at a bright future.
The gradual shift to renewables like wind and solar power could also accelerate demand as the need for energy storage would multiply.
Many of the companies in the business of solid-state batteries are large, public companies traded on exchanges. They can be easily purchased through a most standard brokerage account with providers like Schwab, Webull, Fidelity and Robinhood, and many others like them.
For others, not traded publicly, if you wish to invest directly in them, you will need to approach the private capital market. You will need to bear in mind, however, that the Securities Exchange Commission (SEC) permits access to private capital markets only to accredited investors with a certain minimum experience in trading, as well as a minimum net worth of a million dollars.