7 battery stocks to watch in 2024
Halfpoint / Shutterstock
Updated: December 18, 2023
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
We adhere to strict standards of editorial integrity to help you make decisions with confidence. Please be aware that some (or all) products and services linked in this article are from our sponsors.
The looming arrival of mass-produced solid-state batteries could significantly impact the electric vehicle (EV) landscape. With numerous companies gearing up for production within the next few years, investor speculation surrounding solid-state battery stocks is reaching new heights.
These innovative batteries offer a critical advantage, primarily via their vastly reduced charging times for EVs. Unlike their lithium-ion counterparts, solid-state batteries ditch the flammable liquid or gel electrolyte, paving the way for smaller, lighter, and safer battery packs. This revolutionary technology holds the potential to reshape the EV industry, influencing both the timing and the way consumers adopt this transformative technology.
The worldwide electric vehicle market has grown at a rate of over 40% every year.
A recent report by Allied Market Research predicts a bright future for the electric vehicle (EV) solid-state battery market, forecasting the market to reach an estimated $1.9 billion by 2035, up from $0.37 billion in 2025. That’s about 18% compound annual growth rate over the next decade – potentially super-charging returns for savvy investors.
Best solid-state battery stocks
We conducted a thorough analysis of companies in the solid-state battery sector to identify those that are particularly noteworthy as this innovative technology evolves. Below is our selection of the top seven solid-state battery stocks to watch.
(It's important to note that the stock prices mentioned are based on their values at the market close on Dec. 8, 2023.)
| Battery stock | Ticker | Quick details |
|---|---|---|
| QuantumScape | QS | QuantumScape is a company dedicated to developing solid-state lithium batteries for electric cars. Backers include Volkswagen and Bill Gates. |
| Solid Power | SLDP | Solid Power develops solid-state cell and high-tech sulphide solid electrolyte batteries. Major partners include BMW and Ford. |
| Toyota | TM | Toyota is one of the world’s largest auto manufacturers and helped start the current hybrid and electric car revolution with the Prius and a growing line of EV and hybrid vehicles. Toyota also owns the Lexus, Daihatsu, Hino, and Ranz brands, plus stakes in Subaru, Mazda, Suzuki, Isuzu, Yamaya, and Panasonic. |
| Albemarle | ALB | Albemarle is a chemicals company with a battery division. It’s one of the largest manufacturers of lithium used in electric vehicle batteries. |
| Hyundai | HYMTF | A global manufacturer of cars and electronics, Hyundai Motors owns the EV brand Ioniq. Hyundai also owns a large stake in Kia and fully owns Genisis Motor. |
| Nissan | NSANY | Nissan is a global automaker known for innovation, electric vehicles, and a broad range of models. |
| Ilika | ILIKF | Developer of solid-state batteries, focusing on EV and medical applications. |
1. QuantumScape (QS)
Quick Facts
◦ Current price: $6.94
◦ 12-month high: $13.86
◦ 12-month low: $4.99
◦ 1-year target: $7.00
◦ Market capitalization: $3.41B
Despite some C-suite turbulence, QuantamScape remains committed to introducing a ground-breaking battery technology to the market in the coming years. Their focus is on solid-state batteries capable of recharging from zero to 80% capacity in just 15 minutes, which is considerably faster than the recharge time of most existing lithium-ion EV batteries.
QuantamScape is heavily invested in developing solid-state battery technology that could potentially extend the range of electric vehicles (EVs) and facilitate quicker charging times. However, the company is currently in the investment phase and has not begun generating revenue. They anticipate beginning mass production in a few years, though the initial excitement from investors has waned.
The risk associated with QuantamScape is heightened by the possibility that the technology may not succeed commercially or may fail to meet expectations. This risk is amplified in the current market climate, when companies not yet turning a profit are facing challenges due to the overall market downturn. This makes investing in QuantamScape potentially more hazardous compared to other solid-state battery companies.
2. Solid Power, Inc. (SLDP)
Quick Facts
◦ Current price: $1.40
◦ 12-month high: $3.86
◦ 12-month low: $1.20
◦ 1-year target: $3.25
◦ Market capitalization: $256.95M
Solid Power, a Colorado-based startup backed by BMW and Ford Motor, is setting its sights on initiating mass production of solid-state batteries by 2024. The company has recently revealed plans to start pilot production soon, with the aim of delivering sample batteries to Ford and BMW before the year's end.
One of Solid Power's claimed advantages is its ability to produce solid-state batteries using the existing manufacturing tools and processes that are currently utilized for lithium-ion battery cells. This approach could potentially allow Solid Power to save significantly on capital investment in factory infrastructure compared to companies like QuantamScape. However, this strategy also means that Solid Power might have less direct control over the manufacturing process.
Investing in Solid Power's battery stock is primarily based on its future potential. The company's approach to manufacturing, combined with technology that is still in the validation phase, presents a degree of investment risk. Prospective investors should consider these factors carefully when evaluating Solid Power as a potential investment opportunity.
3. Toyota Motor Corporation (TM)
Quick Facts
◦ Current price: $190.24
◦ 12-month high: $195.65
◦ 12-month low: $132.35
◦ 1-year target: $193.25
◦ Market capitalization: $3.41B
Toyota is a huge name in vehicles, and its focus on EV tech makes it a huge name in batteries.
Toyota is among the automotive giants investing in developing solid-state battery technology in-house. Toyota, in particular, has made notable strides in solid-state battery technology, evidenced by their application for over 1,000 patents in this area.
As a staunch advocate for solid-state technology, Toyota has publicly announced its plans to launch its first vehicle equipped with solid-state batteries in 2025, envisaged as a hybrid model.
But Toyota's business interests are diverse and not solely focused on solid-state batteries. This means that the company's stock price and overall growth could be influenced by numerous factors beyond the development and implementation of solid-state battery technology. This broader scope of operations and influences should be taken into account when considering Toyota's role and potential impact in the solid-state battery market.
4. Albemarle (ALB)
Quick Facts
◦ Current price: $125.35
◦ 12-month high: $293.01
◦ 12-month low: $112.00
◦ 1-year target: $179.89
◦ Market capitalization: $15.02B
Albemarle is making a significant stride in the electric vehicle (EV) battery industry by planning to construct a lithium processing facility in the United States. This plant is expected to produce an amount of EV battery metal equivalent to the company's current global output. Such a development reflects Albemarle's strong belief in a future dominated by electric vehicles.
Though Albemarle is not directly a solid-state battery stock, it's important to include them because they are among the leading lithium producers worldwide. Lithium is a crucial component in EV batteries, including those used in solid-state technology, like those produced by Solid Power. As the production of solid-state batteries ramps up, the demand for Albemarle's lithium products is anticipated to surge significantly.
However, one potential concern for Albemarle hinges on the widespread adoption of electric vehicles. If EVs don't maintain their growing popularity and market penetration, there could be a corresponding slowdown in lithium demand, impacting Albemarle's growth and market position. This factor is worth considering when assessing Albemarle's prospects in relation to the burgeoning EV and solid-state battery markets.
5. Hyundai (HYMTF)
Quick Facts
◦ Current price: $40.51
◦ 12-month high: $44.38
◦ 12-month low: $29.09
◦ 1-year target: N/A
◦ Market capitalization: $36.63B
Hyundai has big ambitions. The South Korean company automaker says it expects all of its EVs to be powered by solid-state batteries by 2030.
In late 2021, Hyundai established a partnership with Factorial to start road-testing solid-state batteries. Rather than developing a brand-new product, Factorial is focusing on evaluating its existing battery technology to assess the feasibility of mass production in the coming years.
Currently, there's no definitive timeline for when a prototype might be ready. Hyundai has committed to investing $7.4 billion in the manufacturing and infrastructure of electric vehicles by 2025.
It's crucial to note that Hyundai, as a large and multifaceted corporation, has a variety of objectives. A range of factors could influence the company's growth trajectory and future stock value. This diverse range of influences distinguishes Hyundai from other companies solely dedicated to solid-state battery technology, and should be taken into consideration when evaluating the company's potential in this specific market segment.
6. Nissan (NSANY)
Quick Facts
◦ Current price: $7.84
◦ 12-month high: $9.64
◦ 12-month low: $6.05
◦ 1-year target: $9.30
◦ Market capitalization: $16.42B
The race to a solid-state battery EV future is on, with Nissan, Hyundai and Toyota among those competing to debut a vehicle powered by solid-state batteries. Nissan is currently developing prototypes at its dedicated solid-state battery facility, with a goal of starting mass production of vehicles equipped with the advanced technology by 2028.
In an effort to reduce production costs, Nissan intends to manufacture these batteries without using cobalt. Reflecting these developments, the company's stock has experienced a significant upsurge.
7. ILIKA (ILIKF)
Quick Facts
◦ Current price: $0.58
◦ 12-month high: $0.90
◦ 12-month low: $0.25
◦ 1-year target: $1.15
◦ Market capitalization: $73.89M
Ilika could be an interesting play, because its focus is shared between vehicles and health care applications. But investors should tread carefully.
The company is planning large-scale production of its electric vehicle (EV) battery cell, known as “Goliath.” The company is also developing “Stereax,” a compact version of its battery technology targeting implanted medical devices.
But with annual sales below $1 million and losses exceeding revenue, Ilika represents a high-risk investment option in the SSB market. Uncertainty surrounding its growth prospects and the timeline for achieving profitability add to its risk profile. Ilika has a challenging path ahead in reducing losses and moving towards profit generation.
Positive signs are on the horizon. Ilika's small size, with a market capitalization of less than $100 million, offers investors a low entry point. Successful commercialization could bring nice returns. Additionally, Ilika's healthcare focus stands out and adds a unique dimension to its potential growth.
A stock tracking app can help you get an idea of what's happening with the markets, individual stocks, and your portfolio.
Other ways to invest in battery companies
Are you intrigued by battery stocks but not yet ready to invest in specific companies? Alternatives abound.
Diversification is key in this scenario, and you can achieve this through vehicles like Exchange-Traded Funds (ETFs), mutual funds, and portfolios managed by robo-advisors.
These investment options allow you to indirectly invest in a range of companies involved in the production of lithium-ion batteries and solid-state batteries. By opting for mutual funds or ETFs that focus on the sector, you reduce the risk of placing your investment in a single, potentially speculative startup.
Instead, you spread your investment across a broader portfolio of companies, some of which might be developing or manufacturing solid-state batteries. This strategy not only mitigates risk but also allows you to participate in the potential growth of the solid-state battery market as a whole. It's an effective way to align your investment with the emerging trends in battery technology while maintaining a diversified and potentially more stable investment profile.
Should you invest in battery stocks?
Considering an investment in solid-state battery companies? It's important to weigh the advantages and disadvantages of putting your money into stocks of these firms. Here's a brief overview of the pros and cons associated with investing in solid-state battery stocks.
Pros
- Growth potential: As demand for EVs and renewable energy storage grows, companies that produce these batteries have big room to grow.
- Innovation: These companies focus on pioneering research and development, which could lead to significant technological breakthroughs – and high returns.
- Environment: Solid-state batteries are seen as more environmentally friendly compared to their lithium-ion counterparts due to better efficiency and potentially safer and more sustainable materials.
Cons
- Uncertainty: Solid-state battery technology is still in developmental stage, and hurdles remain before mass production is feasible.
- High competition: Many companies are vying to develop the next big breakthrough. New entrants may struggle to secure market share, and rapid changes in tech could render some innovations obsolete.
- Long-term horizon: It could take years to go from R&D to commercial-scale production, which may not suit investors looking for short-term gains.
The bottom line on solid-state battery stocks
Batteries play a pivotal role in the widespread acceptance and success of EVs, and the development of solid-state batteries stands at the forefront of potential technological breakthroughs. The transition to electric vehicles is often seen as the future of transportation, and solid-state batteries are viewed as a critical component in realizing that vision. The market for these batteries presents a significant opportunity for investors who are convinced of their potential.
But it’s important to remember that solid-state battery technology is not yet ready for mass production and may still take several years to reach that stage. This delay presents a unique investment opportunity for those who are confident in the technology's future success.
Investors should also be aware of the risks of investing in companies that are yet to be profitable or start their production cycles. Given these uncertainties, it is essential for investors to conduct thorough research and consider all associated risks before making any investment decisions in this nascent market.
