The 3 Smartest Battery Stocks to Buy With $200 Right Now

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Muslim Farooque

Wed, Jun 26, 2024, 2:30 PM 4 min read

Of late, though, we’ve seen a sharp pullback in battery stock valuations following the slowdown in the broader EV market. Additionally, Bloomberg’s EV Outlook for the year highlights a mixed landscape in the global EV space. While EV sales are rising overall, the pace of growth varies by region and segment. Additionally, multiple automotive players have had to adjust their timelines for EV goals, pointing to a muffled landscape.

However, from a long-term perspective, the battery market remains poised for robust annual growth of 16.7% leading up to 2030. That said, these three battery stocks stand out at attractive price points and have strong upside potential. These stocks are positioned exceptionally in their niche and primed for substantial long-term returns, making them top-value picks now.

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Battery Stocks to Buy: Albemarle Corporation (ALB)

Albemarle (ALB) logo on a mobile phone screen

Source: IgorGolovniov/Shutterstock.com

Albemarle Corporation (NYSE:ALB) has been a leading lithium supplier for EVs over the past few years. What gives it the edge over its competition is its interest in bromine and catalysts markets, complementing its lithium segment.

Despite a major correction in the lithium space, Albemarle’s focus on liquidity preservation positions it well during volatile times. Moreover, besides its projected $280 million in productivity benefits, ALB boasts a robust liquidity reserve of $3.7 billion as of March.

Furthermore, a decent head of steam has been building in commodity markets, with gold, oil, and natural gas leading the way. Hence, we could potentially see a comeback in the lithium space during the second-half of the year. Also, Albemarle recently unveiled promising developments in its North Carolina lithium mining project. Therefore, it’s an ideal time for patient investors to invest in ALB stock, as it is positioned for stellar growth once lithium demand escalates.

Panasonic (PCRFF)

A Panasonic (PCRFY) sign hanging in Beijing, China. generation z

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Panasonic Holdings (OTCMKTS:PCRFF) is an OG player in the battery space, known for its high-profile collaboration with Tesla (NASDAQ:TSLA). However, we’ve recently seen the battery market advance its footprint with ambitious independent initiatives. The firm plans to expand its battery production capacity from 50Gwh at the beginning of the year to an enormous 200Gwh by March 2031.

On the innovation front, Panasonic continues pioneering advanced battery technologies. The firm is actively developing cobalt-free battery options boasting an energy density of 1,000 Wh/l. Additionally, Panasonic plans to release a new iteration of EV battery cells with greater energy capacity this year, aiming for a 25% jump in energy density from current levels.

Hence, Panasonic has plenty on its table, and it stands to expand its presence significantly in the EV battery realm. Its recent strategic moves underscore the firm’s massive potential to deliver greater productivity and lower costs in EVs, making it a compelling battery stock option.

Solid Power (SLDP)

Smartphone with logo of American battery company Solid Power Inc. on screen in front of business website. Focus on center-left of phone display.

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Solid Power (NASDAQ:SLDP) represents a high-risk, high-reward opportunity in the battery stock space. Though its stock is up more than 13% year-to-date (YTD), it’s still trading 49% behind its 52-week highs. Hence, those looking to wager on SLDP stock need to have a taste for high-stakes opportunities.

SLDP is spearheading the development of solid-state batteries—often hailed as the holy grail for EVs. Should these groundbreaking batteries reach commercialization, they could potentially deliver multi-bagger returns.

The firm is set to deliver on its ambitious goal of launching improved A-2 cells this year, following the successful delivery of its A-1 cells to its partners last year. A key factor that has analysts bullish over its prospects is its financial backing from the likes of BMW (OTCMKTS:BMWYY) and Ford (NYSE:F). BMW, in particular, has gone one step further and is licensing SLDP’s technology. Moreover, earlier this year, SLP expanded its collaboration with SK On, which will now license SLDP’s solid-state cell designs and manufacturing processes.

On the date of publication, Muslim Farooque did not have (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

Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks. Muslim holds a bachelor’s of science degree in applied accounting from Oxford Brookes University.