The global electric vehicle (EV) market is expected to grow at a compound annual growth rate (CAGR) of 29.4% from 2022 to 2028. This growth is being driven by a number of factors, including government regulations, rising fuel prices, and increasing consumer awareness of the environmental benefits of EVs.
As the EV market grows, so too will the demand for battery stocks. The three battery stocks listed below are all well-positioned to benefit from this growth.
Albemarle
Albemarle is a leading producer of lithium, a key component in EV batteries. The company has a strong track record of innovation and growth, and it is well-positioned to meet the growing demand for lithium in the EV market.
In 2023, Albemarle plans to invest $1.3 billion in a new lithium hydroxide plant in South Carolina. This plant will have the capacity to produce 50,000 metric tons of battery-grade lithium annually, which will help Albemarle meet the growing demand for lithium in the EV market.
Solid Power
Solid Power is a leading developer of solid-state batteries for EVs. Solid-state batteries offer a number of advantages over traditional lithium-ion batteries, including longer range, faster charging, and greater safety.
In 2023, Solid Power plans to begin mass production of its solid-state batteries. The company has already secured partnerships with major automakers, including BMW and Ford.
Amplify Lithium & Battery Technology ETF
The Amplify Lithium & Battery Technology ETF is an exchange-traded fund (ETF) that provides exposure to the lithium and battery technology industry. The ETF invests in a basket of companies that are involved in the development, production, and distribution of lithium and battery technology products.
The BATT ETF is a good option for investors who want to gain exposure to the lithium and battery technology industry without having to pick individual stocks. The ETF has a low expense ratio of 0.59%, and it has outperformed the S&P 500 index over the past year.
Conclusion
The three battery stocks listed above are all well-positioned to benefit from the growth of the EV market. These stocks offer investors exposure to a rapidly growing industry with significant potential for future growth.
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