Investing in solid-state batteries stocks is a long-term bet on electric vehicles.
The world marches toward a greener and more electrified future, traditional lithium-ion batteries struggle to keep up. Enter solid-state batteries, the ‘forever batteries’ that might revolutionize the electric vehicle sector and beyond.
Solid-state batteries technology boasts superior energy density, safety, and longevity compared to its predecessor, positioning them as a robust catalyst for widespread EV adoption.
Therefore, solid-state batteries stocks are positioned for an incredible upside ahead.
According to market research firm Fact.MR, the global solid-state battery market should grow by a whopping 1,137% from 2023 to 2033. With such massive growth on the cards, it’s an ideal time to scoop up some of the market’s needle-movers at substantial bargains.
Let’s explore the three most popular stocks underpinning the solid-state battery’s future.
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QuantumScape (NYSE:QS) could be a game-changer in the battery industry with its ambitious forever battery project.
The company seems to have cracked the code in creating a solid electrolyte material capable of resisting dendrites, a critical element in perfecting the solid-state battery.
This discovery took shape in 2020 with a single-layer cell, progressing to 10-layer and 16-layer cells. By the end of last year, it had taken things up a few more notches by developing a 24-layer cell prototype, setting the stage for a paradigm shift in the EV sphere.
To put things in perspective, QuantumScape’s battery technology could energize EVs for a whopping 400-mile range while recharging them within 15 minutes.
As it gears up to commercialize its next-gen EV batteries, expect the firm to drive billions of dollars in profits, making it an electrifying long-term opportunity.
Solid Power (SLDP)
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In the race to bring the perfect solid-state battery to the market, Solid Power (NASDAQ:SLDP) might be the horse you’d want to back.
SLDP stock is surging ahead this year, up by double-digit margins, as the worst of the correction is over for this promising penny stock.
SLDP furthered its agreement with BMW recently, with the German automobile titan granting its access to the company’s cell design and manufacturing process.
With BMW working in tandem, the path to commercializing forever batteries is poised to accelerate.
Adding to the excitement, SLDP is on track to deliver EV cells to its automotive partners for validation testing in the next few months. With a liquidity buffer of more than $325 million, it has the financial firepower to continue investing aggressively in R&D.
Toyota Motors (TM)
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While most of its peers have hitched their wagons to battery tech startups, Toyota Motors (NYSE:TM) is taking a more proactive approach to developing the forever battery.
It aims to develop the next-generation batteries with a colossal $13.6 billion earmarked for solid-state battery R&D this decade. Hence, its commitment to driving innovation in battery technology is nothing short of extraordinary.
In January last year, the automotive giant revved up the excitement, announcing plans to roll out its first solid-state battery vehicle by 2025. It claims that its solid-state cars would offer twice as much range as its current offerings.
To further its bull case, a study by Nikkei last year crowned Toyota as the leader in solid-state battery patents. Therefore, Toyota’s ambitious endeavor will surely spark investor interest, with the potential to turbocharge portfolios over the long run.
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.