With global community battling against climate change, increased demand for environmentally-friendly products and practices continues to become stronger. Since climate activists continue to raise their voices regarding the negative impacts of traditional gasoline-powered cars on environment, the demand is being seen from some of the renowned automotive companies. There are several climate-conscious consumers who see efficiency and utility of electric vehicles (EVs). As a result of this, best and leading battery stocks are planning to take advantages of this rapidly growing market.
As global automakers product more and more electric cars and trucks, expectations are there that new manufacturing plants might get built to address increased demand for EV batteries. EV battery market size should touch US$624.07 billion by 2036 end. Therefore, this market should be compounded at ~22% between 2024-2036. Increasing need to save oil and gas continues to propel nations throughout the world to use electric vehicles. Best and leading battery stocks are expected to be supported by higher demand for EVs which should help increase demand for batteries. Launch of fresh models into market should increase interest of people in EVs, which should then result in higher demand for batteries.
With this in mind, we will now look at the best and leading battery stocks to invest at current levels.
4 Best Leading Battery Stocks to Buy Now
- Nikola Corporation
- Li-Cycle Holdings Corp.
- Lithium Americas Corp.
- SES AI Corporation
1. Nikola Corporation
The company designs and manufactures battery-electric and hydrogen-electric vehicles, EV drivetrains, vehicle components, and hydrogen fuelling station infrastructure.
It has released financial results for the quarter ended June 30, 2023 (2Q23). It has turned the corner and is on track to execute its business plan and achieving profitability. It has nearly doubled its unrestricted cash position, while significantly reducing its spending.
In 2Q23, the company continued to build sales momentum as it saw 45 wholesales and 66 retail deliveries. The company is now focused on delivering trucks to customers at scale and it plans to take first mover advantage in hydrogen refueling ecosystem. It has raised $233.2 million with the help of capital raise and asset monetization, and it expects that improved visibility into future capital needs should fully finance business model.
DA Davidson increased its target price on the shares of Nikola from $1.00 to $3.00, giving the stock a “neutral” rating on July 31st. JPMorgan Chase & Co. increased its position in shares of Nikola by 21.0% in 1Q. It now owns 693,901 shares of the company’s stock worth $840,000 post purchasing an additional 120,223 shares during 1Q.
2. Li-Cycle Holdings Corp.
The company is a lithium-ion battery resource recovery and a leading lithium-ion battery recycler. It announced financial results for the second quarter ended June 30, 2023.
During 2Q, the company significant strides on its strategic objectives, improving and operationalizing its Spoke & Hub network. In Europe, the company started processing battery materials at its Germany Spoke, first in Europe, which should become largest pre-processing facility in its global Spoke network by 2023 end. When both Rochester and Portovesme Hubs start operating at full capacity, the company should have total lithium carbonate production capacity of up to 25,000 tonnes per year. As a result, the company will be a top global and sustainable producer of lithium carbonate and key battery-grade materials.
At June 30, 2023, the company had cash on hand of $288.8 million. During 2Q, its capital spend came in at $78.4 million, mainly because of procurement of equipment and construction materials and services for Rochester Hub.
Revenues from product sales and recycling services before non-cash FMV adjustments came in at $5.5 million, exhibiting a rise from $4.7 million in similar period of 2022. Rise in product revenue was mainly because of higher sales volume, partially offset by lower market prices of cobalt and nickel.
Adjusted EBITDA loss came in at $39.7 million in comparison to loss of $30.6 million in similar period of 2022. This was mainly because of increased expenses associated to expansion of global network, which offset higher revenues.
Analysts at Wedbush reaffirmed their “outperform” rating on the stock, setting $8.00 price objective on shares of the company in the report dated 15th August.
3. Lithium Americas Corp.
Lithium Americas has been developing 3 lithium production assets, 2 brine resources located in northwestern Argentina and 1 clay resource in Nevada, U.S.
The company has released its financial and operating results for quarter ended June 30, 2023 (2Q23).
Net income in 2Q23 versus loss in 2Q22 was mainly because of lower share of loss of Caucharí-Olaroz project partially offset by lesser gain on change in fair value of GM agreements derivative liability and convertible note derivative liability. In 1H23, its total assets saw an increase mainly because of acquisition of Arena Minerals and cash proceeds from first tranche investment by GM of $320 million.
As at June 30, 2023, it had $502.0 million in cash and cash equivalents and short-term bank deposits, with additional $75 million in available credit. In mid-June 2023, major earthworks construction started at Thacker Pass to support aim of initial production in 2H26.
4. SES AI Corporation
The company develops and produces high-performance Lithium-Metal rechargeable battery technologies for (EVs), electric vehicle take-off and landing (eVTOL), and other applications.
In 2Q, the company saw operating expenses of $19.3 million, exhibiting research and development expenses of $6.4 million and G&A expenses of $12.9 million. On fully-diluted basis, net loss attributable to common stockholders came at the loss of $0.04 per share. YTD, cash used in operations came in at $30.9 million. CapEx so far this year was $7.8 million mainly exhibiting payments for equipment and facilities. Capital expenditures should pick up in 2H as the company finishes vendor selection process for Line 4 and Line 5 and formalize purchase orders.
For FY23, the company anticipates an expected cash usage from operations of between $80 million – $100 million and for capex of between $50 million – $70 million.
Advancement in technology is expected to support growth of best and leading battery stocks. Experts believe that passenger segment should hold ~60% share of EV battery market by 2036 end. This growth is expected to stem from higher demand for passenger electric cars.