July 15, 2024

Electric Vehicle Investment: Top Solid-State Battery Stocks

As the years pass, more and more car companies will include battery-powered vehicles in their lines, ushering in the era of ubiquitous electric vehicles. Several car manufacturers are preparing to phase out emissions, joining Tesla as pioneers in the electric vehicle market. GM, Ford, Volkswagen, and Hyundai are among such firms.

Recent discussions have focused on solid-state batteries and what they could mean for the future of electric vehicle power. Join us as we explore solid-state batteries and the best way to get in early if you believe they could be a good investment.

Is a solid-state battery important? 
First, we’ll discuss why solid-state battery stocks are appealing to some investors before diving into the top companies in this space. Solid-state batteries theoretically have the potential to address many of the issues associated with lithium-ion batteries. The electrolyte in solid-state batteries is solid, as opposed to liquid, like in lithium-ion batteries.

Because of this, solid-state batteries have a shorter charging time, a longer range, and are safer to use than traditional batteries. Corporations are considering employing solid-state batteries to power electric vehicles for these and other reasons.

Therefore, what is causing the delay? At the moment, the production cost of solid-state batteries is quite high. Making one big enough to power a car would be impractical at this time because of the high production costs. However, it doesn’t imply that the car industry isn’t investing heavily to make the solid-state vision a reality.

Putting Money Into Solid-State Drives

Are solid-state battery companies still in their early stages? If so, are they worth investing in? The way you invest and the business you support will have a big impact on this. Remember that the technology to mass-produce electric vehicles with solid-state batteries may not be available for at least another decade.

Be prepared for a long-term, speculative investment if you’re targeting a company for its solid-state battery chances. Despite receiving a $100 million investment from Hyundai, SolidEnergy Systems (SES) and other development aspirants have already given up on their solid-state battery endeavors.

One bright spot is the potential for substantial returns if you are successful in investing in a company that eventually introduces solid-state technology to the electric vehicle market. Happily, many of these companies’ low trading values are a result of their highly speculative nature.

While this is going on, a lot of companies that make solid-state batteries are also working on other things, such as lithium-based batteries for electric vehicles. All of this makes it essential to thoroughly investigate any company you consider investing in.

Currently, only a few businesses may be considered serious front-runners in the race to manufacture the solid-state battery. If you’re considering investing in solid-state technology, here are a few names to watch closely.

The SLDP, or solid power

After making its NASDAQ debut in December 2021, Solid Power is still a relatively young player in the industry. Having attracted a number of influential backers before going public, the firm was nevertheless cautious. Major investors like Volta, Ford, and BMW contributed $130 million to Solid Power in May 2021.

A quantum landscape

This California-based EV battery maker has had significant challenges, despite its former popularity. Shareholders asserted that Quantumscape may have inflated its development reports, leading to an investor lawsuit against the company. Even if this kind of thing never ends well for a business, there are still some investors who are confident in the long run.

“The truth is that QuantumScape won’t likely reach commercial-scale operations until fiscal year 2025,” says Investors Place’s Alex Sirois. That’s well known. Its long-term bet on the production of solid-state EV batteries remains unchanged.

Panasonic’s over-the-counter drug, PCRFY

One last firm to consider is Panasonic, a Japanese multinational conglomerate. Toyota (TM) and Panasonic launched their partnership in 2020 with the goal of creating a future-proof solid-state electric vehicle battery.

Investing in Solid-State Batteries: A Different Perspective

There are also viable alternatives to putting money into companies that make solid-state batteries. One option is to invest in solid-state technology research and development, which many automakers are doing with the expectation that they will incorporate it into their own vehicles in the future.

Tesla appears to have a negative attitude toward the solid-state battery issue, which may surprise those investors who were hoping to see the business included. When asked about the potential of the Tesla Roadster battery pack, engineer Gene Berdichevsky said, “While there are technical reasons why this technology appears to be the holy grail of batteries, the reality is that even if the technology works (and that is a big if after 40 years of development), the technology is unlikely to find more than niche opportunities in the market.”

Choosing the ETF Approach
There is now little certainty as to which developers will emerge victorious in the solid-state battery race. Investing in exchange-traded funds (ETFs) that follow the EV car or battery industries is one method to help spread out your risk. Below is a list of potentially suitable exchange-traded funds.

The Exchange-Traded Fund (LIT) specializes in lithium and battery technology

The Dividend Reinvestment Fund for Autonomous and Electric Vehicles (DRIV) aims to simplify Volt. VCAR, a Tech and Disruption ETF for RoboCars, simplifies the investment process.
Despite not currently concentrating on solid-state battery development, they strive to maintain competitiveness with the leading companies in the industry. Some investors may be able to spot promising newcomers before they make headlines.

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