Stocks to buy

Electric vehicle stocks have emerged as the world transitions towards cleaner and more sustainable energy. While industry giants like Tesla and Nio dominate the space, many smaller companies are worth considering for your portfolio.

Investing in these EV stocks with high growth potential can offer significant returns in the long term. As governments worldwide implement stricter emissions regulations and reward EV adoption, the demand for these vehicles will skyrocket. This presents an opportunity for investors willing to take a chance on lesser-known companies poised for growth.

This article will look closely at three hidden gem EV stocks flying under the radar. These companies may not be as well-known as Tesla (NASDAQ:TSLA) or Nio (NYSE:NIO), but they might deliver massive returns. So without further ado, let’s dive into the exciting world of hidden gem EV stocks.

BYDDF BYD $28.75
LICY Li-Cycle $4.86
ALB Albemarle Corp. $193.05

BYD (BYDDF)

Source: shutterstock.com/DigitalPen

China’s automobile giant BYD (OTCMKTS:BYDDF), which stands for Build Your Dreams, shifted towards producing all-electric vehicles and plug-in hybrid electric vehicles (PHEVs) in 2022. As a result, the company has become one of the hidden gem EV stocks with high growth potential.

Recently, the Warren Buffett-backed firm launched the Seagull EV, an affordable mini-city car, at the Shanghai Auto Show. This electric hatchback might become a significant growth driver for the company.

In 2022, BYD sold over 1.85 million electric cars, including hybrids, and has tripled its EV sales in 2021 and 2022. Despite the challenges faced by the industry, BYD experienced a remarkable Q1 2023 sales jump of 93%.

While most of the sales are within China, BYD has a significant international expansion underway, including markets in the U.S., Europe, and Asia. As a battery supplier for companies like Tesla, coupled with its chip-making capabilities, these two strategic advantages have underpinned BYD’s swift expansion in recent years.

In conclusion, BYD is a hidden gem EV stock worth considering for investors seeking exposure to the fast-growing EV industry. With its shift towards producing all-electric and plug-in hybrid vehicles, the company is well-positioned to capitalize.

The recent launch of the Seagull EV and impressive sales growth in 2021 and 2022 demonstrate BYD’s commitment to innovation and expansion. As the company expands, BYD’s strategic advantages position it for further growth.

Li-Cycle (LICY)

Source: petovarga / Shutterstock

As the EV industry continues to boom, investors constantly search for EV stocks with high growth potential. However, the volatility of individual vehicle manufacturers’ stocks has made some cautious about investing in them.

The surge in demand for EVs has spotlighted lithium miners and EV battery manufacturers. Yet, one EV stock, Li-Cycle (NYSE:LICY), has remained under the radar. Li-Cycle is a battery recycling company that operates in a niche market and offers the potential for significant returns.

Using a patented process, Li-Cycle can extract essential materials such as cobalt, manganese, nickel, and copper from used lithium-ion batteries. This reduces battery manufacturers’ dependence on mining companies to supply these metals, leading to cost savings.

Using their innovative patented process, Li-Cycle has achieved impressive growth in black mass production. In 2021, Li-Cycle produced 2,218 metric tons of black mass, which doubled to 4,416 metric tons in 2022. The company is poised for further growth in 2023, with an estimated black mass production of 7,500 to 8,500 metric tons, positioning Li-Cycle as a major player in the EV industry.

Li-Cycle is also expanding globally, with the development of battery recycling facilities in Germany and Norway and its already established a presence in North America. For investors seeking alternative investment opportunities, Li-Cycle is a hidden gem EV stock with the potential for considerable returns.

Albemarle Corp. (ALB)

Source: IgorGolovniov/Shutterstock.com

For investors interested in EV stocks with high growth potential, Albemarle Corp. (NYSE:ALB) is a hidden gem of EV stock worth considering.

ALB exposes the raw materials that power the entire EV system, making it a valuable alternative to investing in individual battery or storage stocks. No wonder it is one of the top picks among lithium stocks on the market.

Lithium is a crucial element in quick-charging and advanced battery systems.

With a market value of about $23.9 billion, Albemarle is the largest and most prominent lithium provider, making it an ideal choice for investors looking to buy into the battery technology.

Despite recent weak lithium prices and ALB stock trading flat for 18 months, the long-term demand for electric vehicles supports this battery metals stock. Lithium is the essential building block for many energy storage. As a result, it remains vital for the growth of the EV industry.

Albemarle’s role as a leading lithium provider gives it a strategic advantage. While there may not be a dramatic tailwind proving this company’s long-term potential, investors looking at several years instead of several months should consider ALB a solid investment opportunity.

Done with the list? No worries! Here is a more expansive list of growth stocks you can look into.

On the publication date, Faizan Farooque did not hold (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.

Faizan Farooque is a contributing author for InvestorPlace.com and numerous other financial sites. Faizan has several years of experience in analyzing the stock market and was a former data journalist at S&P Global Market Intelligence. His passion is to help the average investor make more informed decisions regarding their portfolio.

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