Stock Market

The surge in green initiatives is driving interest in battery stocks. Now integral to investor portfolios due to rising demand for various applications, battery technology continues to improve. And the companies behind the scenes continue to offer impressive value for those with a long-term investing time horizon.

EV battery stocks are becoming key investments for many long-term growth investors. Over the coming decades, these companies could reshape the wealth for investors focused on the transition to sustainable energy.

Let’s delve into three of the best battery stocks worth adding to your watch list right now.

Byd Co. (BYDDF)

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BYD Co. (OTCMKTS:BYDDF) is a standout in the EV sector, dominating Chinese and global markets. In Q3, its EV sales surged 67%, nearly surpassing Tesla. Also, BYDDF reported a 204% profit increase and 28.6% revenue growth in H1.

BYD’s Blade Battery outperforms traditional lithium-ion batteries in efficiency and cost. Expanding beyond China, BYD’s subsidiary is set to launch SUVs, off-road vehicles, and sports cars, showing market insight and global growth. This diversification shields BYD against domestic regulatory challenges. With its current momentum, 2024 may see this company’s global EV dominance.

Further, favorable industry trends drove BYD’s strong financial performance, despite economic challenges. Increased cash flow supports technological investment and international expansion. Despite regulatory challenges, BYDDF stock could outperform the market in the coming years.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC) stands out as a promising lithium stock for the next five years. After splitting into two entities, LAC is focused on North American assets.

Also, the Thacker Pass project boasts a 40-year mine life and a projected net present value of $5.7 billion at $24,000 lithium carbonate pricing. So, Lithium Americas could generate substantial cash flow if lithium prices rise in the future.

Notably, companies in metals and mining often have irregular cash flow periods. Yet, the company has been prudent regarding capital management, with its debt to equity ratio sitting at only 0.16. For those looking for a way to play the battery revolution, this lithium miner is one of the best ways to do so (particularly when looking at its solid balance sheet).

Panasonic (PCRFY)

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Panasonic (OTCMKTS:PCRFY) remains a significant partner in Tesla’s EV journey. Though Tesla is its primary revenue source, Panasonic strategically enhances its production capacity and embraces innovations in lithium-ion battery design. In addition, it has promising patents for solid-state battery technology to challenge lithium-ion’s EV dominance.

Also, Panasonic is on an ambitious growth path. It aims to quadruple battery capacity to 200GWh by 2031, leading to revenue and cash flow growth. The company’s exercises an innovative approach. With 445 patents in solid-state batteries and advancements in battery durability and density, it is positioned to maintain or expand its market share.

For those who believe the current market share dynamics in the EV sector may continue for some time, Panasonic is the incumbent in the battery realm worth riding to new highs.

On the date of publication, Chris MacDonald 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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.

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