The market for electric vehicle (EV) batteries is heating up. by management consulting firm McKinsey & Company, demand for EV batteries will grow by 30% a year globally between now and 2030. Batteries remain the key component in electric vehicles and companies around the world are racing to make them more efficient and affordable. Longer driving ranges and shorter charging times are the big issues facing EV batteries. Solving them is key to getting more consumers to ditch their gasoline-powered vehicles. Several promising battery stocks are leading the way when it comes to advancing battery technology.
With the market for electric vehicles set to in coming years, investors would be smart to take positions in battery makers. Here are three battery stocks to buy that could skyrocket in the next 12 months.
Panasonic (PCRFY)
Japanese battery company Panasonic (OTCMKTS:PCRFY) is one to watch. So far this year, PCRFY stock has climbed 32% in what has been its best performance in years. Panasonic’s share price has been rising on growing expectations for the company’s role in electric-vehicle batteries. Currently, Panasonic has a of the market for EV batteries. While most people think of Panasonic as making batteries that power TV remotes and flashlights, the company today is the main battery supplier to Tesla (NASDAQ:TSLA).
In an effort to grow beyond Tesla and gain more market share, Panasonic is building a $4 billion . The Kansas plant is expected to create 4,000 jobs once fully operational. Panasonic has secured a deal to to another prominent U.S.-based electric vehicle maker, Lucid Group (NASDAQ:LCID), which makes a luxury sedan that sells for more than $100,000. The company’s future is increasingly tied to the electric vehicle revolution that’s gathering steam.
Lithium Americas (LAC)
Lithium Americas (NYSE:LAC) provides the essential ingredient in EV batteries, lithium. The company currently operates mines in North Carolina and South Dakota, and is a major producer in the U.S. Despite the price of lithium crashing over the past year, LAC stock has still managed to on expectations of future demand. Over the past five years, Lithium Americas stock has increased 275%.
There are reasons to believe that LAC stock will rise even further over the next 12 months. They have a project on the Nevada-Oregon border which has attracted a from automotive giant General Motors (NYSE:GM). The automaker is looking to secure a steady and reliable supply of lithium as it transitions to EVs. is only expected to grow over the coming decade.
Tesla (TSLA)
It’s hard to talk about batteries and leave Tesla (NASDAQ:TSLA) out of the conversation. After all, the company produced enough batteries in 2022 to power EVs. Elon Musk continues to prioritize understanding that longer driving ranges and shorter charging times will lead to mass consumer adoption of electric vehicles. Tesla’s produces five times more energy than previous ones installed in the company’s vehicles.
Tesla is also trying to bring down the cost of EV batteries, which will lower the total cost of its vehicles, making them more affordable for consumers. Much of the outsourcing Tesla does with companies such as Panasonic is to help lower costs and drive sales. TSLA stock has been a standout this year, having after suffering a big decline last autumn. Still, the stock remains nearly 10% lower than where it was trading at 12 months ago, suggesting it is not too late for investors to take a position.
On the date of publication, Joel Baglole held a long position in GM. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
