The mass production of solid-state batteries could impact when and how we implement large-scale electric vehicle technology. Multiple companies are working on bringing these batteries to mass production in the next few years, which means lots of speculation from investors about solid-state battery stocks.
Solid-state batteries aim to reduce charging time for electric vehicles. What makes solid-state batteries so innovative is that they don’t need the same liquid or gel electrolyte as lithium-ion batteries. Solid-state battery packs are smaller, lighter, and less likely to catch fire than standard lithium-ion battery packs.
Bloomberg predicts that the solid-state battery market will grow 13x between 2021 and 2031.
The worldwide electric vehicle market has grown at a rate of over 40% every year.
While solid-state batteries would allow for increased range and quicker charging times, there are still many hurdles before the mass production of solid-state batteries is possible. Here's a rundown of the top solid-state battery companies to consider for your portfolio.
5 Best Solid-State Battery Stocks Worth Considering in 2022
We analyzed solid-state battery companies to see which ones are worth paying attention to as this new technology develops.
Here’s our list of the best solid-state battery stocks. (Please note that all the stock prices are as of market close on July 18, 2022.)
|Solid-State Battery Stock||Ticker||TL;DR (Too Long; Didn’t Read)|
|QuantumScape||QS||QuantumScape is a company dedicated to developing solid-state lithium batteries for electric cars. Backers include Volkswagen and Bill Gates.|
|Solid Power||SLDP||Solid Power develops solid-state cell and high-tech sulphide solid electrolyte batteries. Major partners include BMW and Ford.|
|Toyota||TM||Toyota is one of the world’s largest auto manufacturers and helped start the current hybrid and electric car revolution with the Prius and a growing line of EV and hybrid vehicles. Toyota also owns the Lexus, Daihatsu, Hino, and Ranz brands, plus stakes in Subaru, Mazda, Suzuki, Isuzu, Yamaya, and Panasonic.|
|Albemarle||ALB||Albemarle is a chemicals company with a battery division. It’s one of the largest manufacturers of lithium used in electric vehicle batteries.|
|Hyundai||HYMTF||A global manufacturer of cars and electronics, Hyundai Motors owns the EV brand Ioniq. Hyundai also owns a large stake in Kia and fully owns Genisis Motor.|
1. QuantumScape (QS)
Current Price: $10.89
12-Month High: $43.08
12-Month Low: $8.22
1-Year Target: $16.14
Market Capitalization: $4.688B
QuantamScape's stock dropped to all-time lows recently because the chief manufacturing officer stepped down. However, QuantamScape still promises to deliver a revolutionary battery to the market in a few years. The solid-state batteries they’re working on should recharge from zero to 80% capacity in 15 minutes (half the time of most lithium-ion EV batteries).
QS is working on creating solid-state battery technology that would increase the range of the EV and help it charge more quickly. The company has been investing heavily in this technology and is yet to start generating revenue. They claim mass production will begin in a few years, but investor hype has faltered.
If the technology flops or is a commercial failure, then QuantumScape would be in serious trouble. That makes this a riskier investment than some of the other solid-state battery companies on our list. It also appears that companies that aren’t turning profits are struggling in 2022 during the overall market decline, which is another risk factor.
2. Solid Power, Inc. (SLDP)
Current Price: $6.20
12-Month High: $14.85
12-Month Low: $5.22
1-Year Target: $11.00
Market Capitalization: $1.077B
Solid Power aims to begin mass production of solid-state batteries by 2024. BMW and Ford Motor back this Colorado-based startup. They’ve recently announced that pilot production will start shortly so it can ship out samples to Ford and BMW by the end of the year.
Solid Power claims to have a competitive advantage because it believes its batteries can be produced using the same tooling and processes already used in factories to make lithium-ion battery cells. This shortcut also means that Solid Power won’t have to invest as much capital into factories as QuantamScape. Consequentially, Solid Power will have less control over the manufacturing process.
Once again, you would invest in this solid-state battery stock based on potential. With less control over manufacturing and technology that isn’t entirely proven yet, this could be a risky investment.
3. Toyota Motor Corporation (TM)
Current Price: $158.05
12-Month High: $213.74.
12-Month Low: $152.14
1-Year Target: $186.74
Market Capitalization: $216.883B
Startups in the solid-state battery market must worry about major companies like Toyota developing something in-house. Toyota has been working on producing a solid-state battery technology of its own, applying for over 1,000 patents related to solid-state batteries.
Toyota is a huge proponent of this technology. The company went on record to claim that its first vehicle with solid-state batteries will release in 2025 as a hybrid.
It’s essential to keep in mind that because Toyota isn’t a company wholly devoted to producing solid-state batteries, additional factors could impact the stock price and the company's overall growth.
4. Albemarle (ALB)
Current Price: $206.14
12-Month High: $291.48
12-Month Low: $169.93
1-Year Target: $274.65
Market Capitalization: $24.142B
Albemarle is planning on building a lithium processing plant in the U.S. that would produce EV battery metal comparable to what the entire company currently produces worldwide. This bold move indicates that they believe in an all-electric future.
While this technically isn’t a solid-state battery stock, we listed Albemarle here because the company is one of the world’s top lithium producers, a key ingredient for EV batteries. Solid Power uses lithium in its solid-state batteries, so demand for Albermarle products should drastically increase when solid-state battery production begins.
The only drawback to look for is the mass adaption of electric vehicles. If they don’t continue to grow in popularity, lithium production could slow down.
5. Hyundai (HYMTF)
Current Price: $36.65
12-Month High: $51.05
12-Month Low: $30.10
1-Year Target: N/A
Market Capitalization: $28.645B
Hyundai secured a partnership with Factorial in late 2021 to begin testing out solid-state batteries for the road. Instead of creating a new product, Factorial has an existing battery that it will test to see if there’s potential for mass production in the next few years.
There’s still no timeline on when we could expect a prototype to be available. Hyundai expects to invest $7.4 billion in electric vehicle manufacturing and infrastructure by 2025.
Once again, we must stress that Hyundai is a major corporation with several goals. Many factors could impact the company's growth and future stock price compared to other solid-state battery stocks.
Other Ways To Invest in Solid-State Battery Companies
What if you want to invest in solid-state battery companies but aren’t willing to invest in one individual company at the moment?
Some indirect ways to invest in these stocks include ETFs, mutual funds, and robo-advisor portfolios. You’ll want to explore mutual funds or ETFs that offer exposure to lithium-ion batteries and solid-state battery-producing companies to avoid risking your money on a highly speculative startup.
Should You Invest in Solid-State Battery Stocks?
Is it worth investing in companies that produce solid-state batteries? Here are some pros and cons to investing money in solid-state battery stocks.
The Bottom Line on Solid-State Battery Stocks
Batteries are crucial for the mass adoption of electric vehicles. Solid-state batteries could be the next major breakthrough if all goes well. If you believe that electric vehicles are the way of the future and that solid-state batteries are the missing ingredient, this is a market worth exploring.
While solid-state battery technology is still a few years away from mass production, this could be the perfect opportunity to start investing in the market if you believe the hype. We must stress the technology might fail or might not be a commercial success.
You’re also taking on risk by investing in some companies that haven’t turned a profit or started production. You should perform your own research and consider any risks before making investment decisions.
- How to Invest $5,000
- Do YOLO Stocks Deserve a Place in Your Portfolio?
- Oil vs. Renewable Energy Stocks: Which Should You Invest in Today?