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7 Battery Stocks to Buy and Hold for Big-Time Gains

As we enter into the era of renewable energy sources like solar and wind power, battery companies are one of the fastest-growing sectors. Based on research from Precedence Research, the global electric vehicle (EV) battery market size is set to be worth $559.87 billion in 2030 and growing fast at a compound annual growth rate (CAGR) of 32% from 2022 to 2030. With the broader markets getting hit this year, now is a great time to look at some battery stocks to buy and hold.

Battery technology has improved over the past decades, making batteries more efficient and less costly. Electric vehicles, which can only be charged using electric power, are on the rise, thanks to government incentives and rising fuel prices.

There are hundreds of companies in the EV and battery industries. Only a handful of them is worth investing in. Here are seven that are making waves:

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Battery Stocks to Buy and Hold: Panasonic (PCRFY)

10 Lithium Stocks to Buy Despite the Market's Irrationality
10 Lithium Stocks to Buy Despite the Market's Irrationality

Source: Shutterstock

Panasonic (OTCMKTS:PCRFY) has been around for over 100 years and is one of the leading electronics companies in Japan.

The company has a wide range of products. One of its main product lines is televisions, which it produces in several different sizes and price ranges. The company also produces other consumer electronics, such as air conditioners, refrigerators, washing machines, electric shavers, cameras, and laptops.

Panasonic also provides industrial equipment to companies around the world. These include power generators and motors for heavy machinery like ships and trains and semiconductor manufacturing equipment used to make computer chips for smartphones and computers.

In addition to these products, Panasonic is also involved in aerospace technologies such as satellites and aircraft engines.

Panasonic’s business model is diversified, so they have plenty of room to experiment with battery developments for electric cars. The Japanese conglomerate is conscious of this. Consequently, Panasonic created a subsidiary Panasonic Energy, for a more focused approach to battery technology.

Panasonic is currently Tesla’s (NASDAQ:TSLA) main supplier of batteries for its EVs, and the battery business has grown as the demand for Teslas increased. Earlier this year, Panasonic announced an investment of $4 billion in constructing a second U.S. EV battery facility in Kansas.

The company expects to triple or quadruple battery production capacity by 2028, which will allow them to improve the quality of its EVs and keep up with demand.

General Motors (GM)

Image of the new GM logo on a smartphone with cars in the background.
Image of the new GM logo on a smartphone with cars in the background.

Source: Formatoriginal / Shutterstock.com

General Motors (NYSE:GM) was founded in 1908 as a holding company for Buick. The first car was the Buick Model 20, made from a combination of parts from other manufacturers. In 1911, General Motors purchased Chevrolet Motor Company and became one of the world’s largest automakers. General Motors produces vehicles with different engines and designs and provides other services such as financing cars or car insurance.

GM has a long history of innovation and success. But now, they are facing new challenges as they try to keep up with the rapid pace of change in today’s automotive industry.

General Motors is taking steps to ensure that these changes do not threaten its longevity. They are focusing on developing new technologies that will be able to keep them competitive for years to come, such as electric vehicles and autonomous driving.

GM CEO, Mary Barra, has an aggressive plan to make GM sell more electric cars by 2025. She thinks that around one million new electric vehicles will be sold by that time. General Motors says it will invest $35 billion into making electric vehicles, battery plants, self-driving cars, and fuel cells.

GM is spending a total of $7 billion in Michigan to boost its plan of rapidly expanding EV and battery production. It’s GM’s biggest commitment and includes a $2.6 billion investment from LG Energy Solution to build its third U.S. battery cell production plant in Lansing, Ohio, which is up and running.

GM is evolving for the future, which it recognizes is electric. It has made some convincing moves toward this, and investing in EVs is a step in the right direction. Plus, investors will find solace in its main business lines thriving.

Battery Stocks to Buy and Hold: QuantumScape (QS)

A hand holds a phone and the screen shows the QuantumScape logo
A hand holds a phone and the screen shows the QuantumScape logo

Source: rafapress / Shutterstock

QuantumScape (NYSE:QS) has developed a solid-state battery technology to increase the range of electric vehicles.

The technology is based on a nanoscale material that can store and release electrons easily. This makes it possible for the batteries to charge faster, last longer, and work in extreme temperatures.

QuantumScape’s solid-state battery technology is based on a nanoscale material that can store and release electrons easily. This makes it possible for the batteries to charge faster, last longer, and work in extreme temperatures.

QuantumScape is currently testing battery technology at scale. The company plans to start pilot production in 2024. Since this is a pre-revenue company, you need to be open-minded when investing in this one. So, if you are looking for EV stocks to buy and hold, then this fits the bill, particularly the hold part. If you decide to do so, you will join an elite level of backers, including Bill Gates and Volkswagen (OTCMKTS:VWAGY).

QuantumScape knows there’s a market for its battery technology and is on the way to introducing it. It aims to change the fast-growing EV battery industry. Positive factors for QuantumScape include that the company has the potential to become a leader in the industry, and its technology has generated interest from innumerable auto manufacturers.

Despite the positive outlook for its contribution to EV performance and cost, QS stock currently has limited upside in the current market.

Honeywell International (HON)

Honeywell (HON) logo on front of glass building
Honeywell (HON) logo on front of glass building

Source: josefkubes / Shutterstock.com

Honeywell International (NASDAQ:HON) produces various products for both the commercial and consumer markets. It is one of the oldest companies in the United States and has been operating since 1906.

Due to its size and strength, the company is a relatively safe play when discussing battery stocks to buy and hold. Honeywell has performed well during challenging economic conditions. It has allowed the company to become a solid income play as well. Honeywell recently hiked its dividend by 5.1% from its prior dividend of $0.98. It is the 13th time the company has raised the payout for over twelve consecutive years.

It is also investing heavily in EV battery technology. Last year, it announced a new flow battery technology. The new flow battery produces a safe and environmentally-friendly means of storing energy for later use. It also lasts much longer than other storage devices.

Battery Stocks to Buy and Hold: FREYR (FREY)

An electric car battery unit.
An electric car battery unit.

Source: asharkyu / Shutterstock.com

FREYR Battery (NYSE:FREY) is currently a pre-revenue company looking to build out gigafactories to service the EV industry.

Analyst Adam Jonas from Morgan Stanley rated FREYR Battery’s stock highly at the 10th Annual Laguna Conference. Jonas explained that FREYR has the right talent and strategy to dominate a currently undersupplied market. It is high praise for a company that is still pre-revenue.

Despite being a young company, FREYR Battery has assembled an impressive roster of partners. Recently, it inked a deal with Japanese electric motor giant Nidec for a joint venture.

Freyr will supply a total of up to 50 GWh of Li-ion battery cells from 2025-2030. For now, it’s aiming for 38GWh, but under the agreement, it can deliver a higher volume from 2025-2030 and increase delivery even after 2030. The binding 38 GWh sales contract has a gross value of $3 billion and is one of the largest energy storage systems deals globally.

The combination of robust prospects, strong partnerships, and an excellent management team make FREYR Battery one of the best battery stocks to buy and hold.

Albemarle (ALB)

Albemarle (ALB) logo on a mobile phone screen
Albemarle (ALB) logo on a mobile phone screen

Source: IgorGolovniov/Shutterstock.com

Albemarle (NYSE:ALB) has subsidiaries in the United States and Europe and is a global producer of chemicals.

Albemarle’s products are used to manufacture Li-ion batteries for electric vehicles. Lithium hydroxide provides a source of lithium ions during battery charging, while lithium carbonate provides a source of lithium ions during battery discharge.

Albemarle is developing several major production projects in Chile, Australia, and China to meet the increased global demand for lithium. As prices have risen for lithium and as demand has surged, Albemarle has invested more significantly to maintain its position as one of the best battery stocks to buy and hold.

Albemarle’s business could go up and down like that of commodity producers. This is because the lithium and other important materials it mines for will fluctuate in availability and price. Some years will be good, others may not be as good. However, for the next decade, demand for batteries will likely remain elevated due to the uptake of EVs.

Battery Stocks to Buy and Hold: BYD (BYDDF)

BYD Company Limited logo in front of their website. BYDDY stock.
BYD Company Limited logo in front of their website. BYDDY stock.

Source: T. Schneider / Shutterstock

BYD (OTCMKTS:BYDDF) is an integrated electric vehicle company that was founded in 2003. It is China’s largest electric vehicle manufacturer and the leading plug-in electric car manufacturer.

The company also produces a range of rechargeable batteries, including lithium-ion batteries, nickel-cadmium batteries, and lead-acid batteries.

Berkshire Hathaway (NYSE:BRK-A, NYSE:BRK-B) is a notable shareholder of BYD. Berkshire is one of the largest companies in the world, and it has been investing in different industries for decades. Investors are always looking at its portfolio to decide where to invest next. Fellow InvestorPlace contributor Alex Sirois came up with a great list if you are curious about some of the more prominent companies Warren Buffett likes. In 2008, Berkshire Hathaway invested in BYD and became one of its largest shareholders. The investment paid off well for Berkshire Hathaway because the stock price increased by more than 150% in just five years.

In September, BYD once again set a new milestone for plug-in cars. Last month, BYD sold an astonishing 200,973 electric cars to the public. This represents 187% more than a year ago and is a new monthly record.

BYD predicts it will make a profit between $765 million and $820 million in its most recent fiscal quarter. This is an increase of 333%-365% compared to last year. China’s largest electric car maker says its recent results indicate that it maintains a healthy lead over Tesla, no easy feat.

It has grown so quickly because it adopted an integrated approach to its business. This means that it invests in EV batteries while ensuring that it remains a healthy company, giving safety and security to investors who are looking for battery stocks to buy and hold.

On the publication date, Faizan 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.

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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