5 Best Battery Stocks to Buy in 2024

Battery stocks are becoming an increasingly interesting proposition as the global economy slowly transitions away from fossil fuels. In particular, the growth of the EV (electric vehicle) sector could provide a real boon for companies that produce batteries or the materials used in their production.

We’re featuring the best battery stocks to buy, which could benefit significantly from an increased demand for batteries. We’re featuring companies that produce batteries for EVs, mobile devices, as well as companies that are developing solid-state battery technologies which could bring dramatic improvements over current-generation battery technologies.

The best battery stocks to buy in 2024

Without further ado, let’s get into our list of the best battery stocks to buy in 2024. We’re highlighting well-established companies, as well as some more speculative picks which could see above average growth if the development of their innovative battery technologies goes according to plan. 

1. Panasonic

Panasonic is a Japan-based electronics company that produces consumer electronics, rechargeable batteries, industrial systems and a variety of other products and services. 

Among other types of batteries, Panasonic manufacture cylindrical lithium-ion batteries which are used in electric vehicles. Panasonic is a long-term partner of Tesla, and has invested in the company’s Giga Nevada factory. Besides working with Tesla, Panasonic is also a major supplier for Subaru and Mazda.

Panasonic also has an EV battery join venture with Japanese automotive giant Toyota. The venture, in which Panasonic has a 49% stake, is called Prime Planet Energy & Solutions.

According to reports, Panasonic is planning to introduce its latest EV battery cell technology in 2024. The new battery cells, which are poised to deliver increased capacity, will be manufactured at the Giga Nevada plant. 

Panasonic says their goal is to produce 200 gigawatt hours of energy in EV batteries by 2030 (the company’s current production capacity is about 50 gigawatt hours). If the company can realize its ambitious production goals, it could become one of the best EV battery stocks.

Key highlights:

• Major supplier of EV batteries
• Partnership with Tesla
• The company is looking to expand its EV battery production capabilities significantly

2. Albemarle

Albemarle doesn’t directly produce or sell batteries, but we’re still featuring it as an example of a battery stock since it is a key supplier to the battery industry. Albemarle is a supplier of lithium a variety of forms, including ingots, foil, rods and anodes. As of 2020, Albemarle was the world’s biggest supplier of lithium for EV battery purposes. 

Given the expected boom in the electric vehicle market, Albemarle could be positioned very well to take advantage of this trend. However, as a commodity producer, Albemarle is also exposed to the market’s cyclical tendencies.

If you’re bullish on the battery industry, Albemarle is one of the best ways to get exposure to its growth. For example, the Global X Lithium & Battery Tech ETF (LIT) currently has Albemarle as the largest holding in its portfolio, with a weight of 9.71% as of February 7, 2024. 

Key highlights:

• Largest lithium supplier for EV batteries
• Has operations in North America, South America, Europe, Asia and Australia
• Exposed to the cyclical nature of the commodities market

3. TDK Corp

TDK Corporation is a Japan-based electronics company that’s involved in the manufacturing of electronic components and data storage media.

In 2005, TDK acquired the China-based lithium ion battery manufacturer Amperex Technology Ltd. TDK is a supplier of silicon-carbon batteries used in smartphones. 

The company’s list of customers even includes tech industry giant Apple. According to reports, TDK is planning to build an 180-acre facility in Manesar, India, where they will be manufacturing battery cells for use in Apple’s iPhone devices.

When it comes to electric vehicles, TDK produces thermal management solutions that ensures the different components of electric vehicles operate at their optimal temperatures.

Meanwhile, TDK’s venture arm TDK Ventures has made an investment in battery and charging system company Exponent Energy.

Key highlights: 

• Battery supplier for Apple
• Produces thermal management solutions for EVs
• The company has developed the CeraCharge solid-state batteries

4. Solid Power

Solid Power is a company that is developing solid-state battery technology. It employs sulfide-based solid electrolytes, which Solid Power says provide an optimal blend of conductivity and compatibility with conventional manufacturing equipment. The firm refers to its products as “all-solid-state batteries.”

The enterprise has reached a joint development partnership with the German auto industry giant BMW, establishing of a prototype production line for solid-state batteries at BMW’s CMCC facility in Parsdorf. 

BMW aims to unveil a vehicle equipped with solid-state battery technology by 2025. As part of the agreement, BMW has committed to compensating Solid Power with up to $20 million contingent upon achieving specific pre-determined milestones.

In 2023, Solid Power disclosed its upcoming financial support from the U.S. Department of Energy for its battery development endeavors, with potential funding reaching as much as $5.6 million from the DoE.

Solid Power is certainly on the more speculative end of the battery industry, as the company is working on cutting-edge technology that hasn’t yet proved itself as suitable for mass production. In addition, the company has a fairly low market capitalization of $277 million. However, the company could be worth a shot if you think there is a bright future for forever battery stocks. 

Key highlights:

• Develops solid-state battery technology, also known as “forever batteries”
• Partnership with BMW
• Small market capitalization

5. QuantumScape

QuantumScape is a company developing solid-state batteries based on lithium-metal technology. The company is focused on decreasing both the expenses and the complexities involved in the production of advanced batteries by utilizing a cell design without an anode and a unique solid ceramic separator. 

QuantumScape claims that its batteries could enhance the driving range of current leading electric vehicles by 50% to 80%. If it manages to bring its batteries to the mass market, QuantumScape could turn out to be one of the best solid state battery stocks.

Established in 2010, QuantumScape has received the attention and financial backing from a number of significant investors, with the German automotive powerhouse Volkswagen being the most notable, having invested approximately $300 million into QuantumScape to date.

However, QuantumScape has also been the subject of controversy. Scorpion Capital, an activist short-selling firm, issued a highly critical report on QuantumScape in 2021, in which it alleged that the company made misleading or even fraudulent claims about its battery technology. 

Key highlights:

• A “forever battery” stock
• Anodeless battery architecture
• Backing from Volkswagen

The bottom line

Hopefully, our list of the best battery stocks helped you find companies that could benefit from the growth in demand for batteries. These companies could become some of the best stocks to buy if the EV market grows according to current projections.

An alternative to purchasing individual stocks would be to invest in an ETF such as Global X Lithium & Battery Tech ETF (LIT), which aims to provide diversified exposure to the battery and lithium sectors.

Lithium is a crucial resource for the battery industry. If you’d like to learn more about companies operating in this sector, take a look at our list of the best lithium stocks.