11 Most Promising EV Battery Stocks According to Analysts

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In this article, we discuss the 11 most promising EV battery stocks according to analysts. To skip the detailed analysis of the EV battery industry, go directly to the 5 Most Promising EV Battery Stocks According to Analysts.

The global push toward clean energy has been mainly due to climate concerns. From a financial perspective, oil and gas have been unreliable over the past few years. While the oil and gas industry has made some investors very rich, the volatility has negatively affected the economy.

Oil prices experienced a heavy slump in 2020 to reach record highs in 2022. Stimulus payments due to the pandemic, paired with the jump in oil prices, threw the US economy into chaos. The oil prices dialed down in 2023, and the economy also showed signs of recovery on the back of the technology sector. Then the Middle East conflict made the world hold its breath again as it readied for another oil price surge and a blow to the economy. Fortunately, it didn’t happen. The uncertainty of oil prices due to foreign wars and production cuts, paired with climate concerns, make a perfect case for the US to shift toward renewable energy and electric mobility.

The electric vehicle (EV) and battery stocks lagged behind the market in 2023. KraneShares Electric Vehicles & Future Mobility ETF tracks companies directly involved in EV and EV component production and is down 9.8% year-to-date (YTD) as of December 21. While the funds’ biggest EV stock, Tesla, Inc. (NASDAQ:TSLA), performed exceptionally well this year, the biggest EV battery stock, Albemarle Corporation (NYSE:ALB), had quite a rough time. The former is up 135.43%, and the latter showed a 32.19% YTD deficit.

Due to slower-than-expected EV sales growth and over-supply of lithium, the metal’s price went down drastically this year. Lithium prices reached a record of nearly 600,000 CNY (1 CNY = 0.14 USD) per tonne by November 2022 and are now below 100,000 CNY per tonne on December 21. On the other hand, while EV growth was not up to par, in the third quarter of 2023, US sales volumes crossed 300,000 for the first time and are likely to hit the million units mark in 2023. Schmidt Automotive Research expects EV growth to plateau next year and bounce back strongly in 2025 and 2026.

While several analysts keep a bearish view of lithium over the next couple of years, the long-term demand for lithium looks quite promising. Government subsidies around the world and regulatory changes are creating an EV future, leading to a rise in demand for the metal. Experts predict that 90% of total passenger car sales will be electric in several countries by 2030.