The 3 Best Battery Stocks to Buy in July

Gabriel Osorio-Mazzilli

Sun, Jul 16, 2023, 8:54 PM 4 min read

The battery market is experiencing steady growth these days. The reason behind this boom is the increasing adoption of electric vehicles and the growing need to store renewable energy. With this scenario in mind, investing in battery stocks could be a very wise strategy for investors who want to take advantage of this upward trend. This has led to the rise of high-potential battery stocks in July.

If you’re looking for the best battery stocks to invest in July, you’ve come to the right place. Demand for lithium batteries and other related products is increasing rapidly due to the growing adoption of electric vehicles and renewable energy sources. In this article, we will look at three battery stocks that have great growth potential in the market.

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Albemarle Corporation (ALB)

Albemarle (ALB) logo on a mobile phone screen

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Let’s start by talking about Albemarle Corporation (NYSE:ALB), a chemical company specializing in the production of lithium, bromine, and catalytic solutions for various industries. Albemarle is recognized as a leading producer of lithium, which is an essential component in rechargeable batteries used in electric vehicles, energy storage systems, and portable electronic devices. With the growing popularity of electric vehicles and renewable energy, the demand for lithium is steadily increasing.

In addition to its role in the lithium market, is a major player in the production of bromine. Bromine is used in a variety of applications, such as flame retardants, drilling fluids in the oil industry, water purification, and pharmaceuticals. In addition, Albemarle produces catalysts that improve efficiency and performance in the refining, petrochemical, and chemical industries.

In terms of financial results, in its latest first-quarter report, Albemarle Corporation exceeded analysts’ expectations in terms of earnings per share, which is a good sign of its financial performance. Revenues also experienced an impressive 128.8% year-over-year growth to $2.58 billion. While falling short of analysts’ expectations of $2.73 billion, these results demonstrate solid performance.

However, Albemarle Corporation shares have experienced a 21.6% decline in the last quarter and a year-to-date loss of 20.0%. This decline may be due to market conditions and investor sentiment. According to Wall Street analysts, the average price target for Albemarle over the next 12 months is $280.50.

Sigma Lithium (SGML)

lithium stocks Lithium-elements on periodic table 3d illustration

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Let us now turn to Sigma Lithium Corp. (NASDAQ:SGML) a mining company focused on lithium production. Its Grota do Cirilo mine, located in Brazil, is a major source of lithium for electric vehicle batteries and renewable energy storage. Sigma is in the initial stage of production and is preparing to make its first shipment of lithium to LG Energy Solution Ltd of South Korea, a leader in the lithium-ion battery industry. This first shipment is estimated to be around 15,000 tons.

Sigma CEO Ana Cabral-Gardner has revealed that LG is one of its customers. The company’s lithium sale to LG will include scrap products that will be transformed into value-added products. Specifically, 300,000 tons of ultra-fine tails from the upstream operations are expected to be converted into chemical inputs for popular automotive batteries. Sigma has plans to increase production capacity at the Grota do Cirilo mine. This makes it one of those high-potential battery stocks in July.

By July 2023, the company aims to reach a production capacity of 270,000 tons per year of spodumene concentrate, a source material for lithium. Further expansion is expected in the second and third phases of the operation, which will increase capacity to nearly 766,000 tons by mid-2024.

Livent Corporation (LTHM)

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Now let’s talk about Livent Corporation (NYSE:LTHM), a company specializing in the production and supply of lithium-based products for various industries seeking sustainable energy solutions. In its latest first-quarter report, Livent Corporation reported adjusted earnings per share of $0.60, beating the average estimate of $0.39 forecast by thirteen analysts.

This indicates that Livent Corporation’s profitability was higher than expected. In addition, the company experienced significant revenue growth, which increased 76.7% year-over-year to $253.5 million for the quarter. These results demonstrate a solid sales performance.

In terms of market performance, shares experienced a 3.8% decline during the last quarter, but have achieved a year-to-date gain of 5.1%, showing a mixed performance in the market.

As of this writing, Gabriel Osorio-Mazzilli did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.

Gabriel Osorio is a former Goldman Sachs and Citigroup employee. He possesses discipline in bottom-up value investing and volatility-based long/short equities trading.