Given China accounts for over 50% of electric car sales (55% in June), it makes sense that the Chinese leaders will do well. Stock analysis for Eve Energy Co Ltd (300014:Shenzhen) including stock price, stock chart, company news, key statistics, fundamentals and company profile. From there, it is positioning the company to have the output capabilities to meet that demand level. Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is another lithium supplier. and Disclosure: I am/we are long TSLA, BYD CO [HK:1211]. Shares of Energizer Holdings (NYSE:ENR) were stuck in a narrow trading range of between $37.50 and $40.50 for most of last year, but to open 2020, ENR stock was on the rise, topping the $50 mark and seemingly finding support there. Singh tells Barron’s that the critical technical challenge needed to be overcome with solid-state batteries has to do with dendrites, branch-like growths that people might see on a windshield in the winter. Analysts' consensus is an outperform with a price target of CNY 74.62 representing 1.8% downside. I wrote this article myself, and it expresses my own opinions. 2019 net profit margin is 2.1% and 2020 is 2.3%. It raised its lithium outlook and said it expected sales of around 50,000 tons. Overall, management expects production growth of 15,000 to 20,000 metric tons and EBITDA growing in the high teens. China's BYD is the world's number 3 battery manufacturer and China's number 2 battery manufacturer with large expansion plans. Of course, the March meltdown sent it right back to the $37 range, but it once again is flirting with the $50 mark. Solid-state lithium battery maker QuantumScape is becoming a publicly traded entity through a merger with special purpose acquisition company, or SPAC, Tesla's new China gigafactory nearing completion. The companies aim to increase battery capacity by 50 times, compared to those used in current Toyota hybrid vehicles. LG Chem has agreements to supply Volkswagen (OTCPK:VLKAY), General Motors (GM) (Chevy), Ford (F), Geely (OTCPK:GELYY) (Volvo), Renault (OTC:RNSDF), Nissan (OTCPK:NSANY), Hyundai (OTC:HYMTF), Kia (OTC:KIMTF), and others. Analysts' consensus is an outperform with a price target of CNY 55.49 representing 0.8% downside. Nasdaq The higher output is due to its operations in the Atacama salt flat. Analysts' consensus is a buy with a price target of KRW 443,548 representing 31% upside. The biggest expansion plans look to me to be for Tesla, LG Chem, CATL, and Wanxiang Group. After all, the #1 stock is the cream of the crop, even when markets crash. They have launched a cost-effective and modular MWH-level intelligent micro-grid energy-storage system together in order to make their own contributions to reducing carbon emission for human beings. So with tens of thousands of homes potentially implementing a smart home, the partnership is a natural extension. In December 2018, it traded from $295 to $376 per share. Editor’s note: “7 Battery Stocks for High-Powered Gains” was previously published in August 2020.It has since been updated to include the most relevant information available. (Jan 2019)". For the rest of 2020, SQM expects pricing levels similar to last year’s levels. A battery with that density would be capable of powering an electric car for 1,000 kilometers (621 miles) on a single charge. At gigafactory 1 in the USA, Tesla has a JV with Panasonic. Li-ion battery demand is forecast to grow about 10 fold between 2018 and 2030, mostly due to the EV boom. To report a factual error in this article, "Who is winning the global lithium ion battery arms race? We've detected you are on Internet Explorer. 2019 PE is 24.9 and 2020 PE is 14.7. Investors that choose stock in the company that is ultimately successful at developing and producing this type of power may enjoy significant profits when it comes to market. Raw material prices can rise and hurt profit margins. 1 manufacturer and has deals with more car OEMs than any other company (CATL being similar). If Maxwell’s R&D efforts pay off, the unit could bring performance enhancements for lithium-ion battery cells. This is due to "surging demand for portable and … Financial Market Data powered by FinancialContent Services, Inc. All rights reserved. Editor’s note: “7 Battery Stocks for High-Powered Gains” was previously published in August 2020. EV stocks Barron’s tracks are up more than 350% year to date on average. Investors interested in owning QuantumScape can start buying KCAC stock before the merger closes. It has since been updated to include the most relevant information available. Lynas Corporation Can Be A Winner If The Trade War Worsens, Top 5 Cobalt Miners To Consider As The Cobalt Bear Market Winds Down. Enphase shipped 976,410 microinverters. This post may contain affiliate links or links from our sponsors. Article printed from InvestorPlace Media, https://investorplace.com/2020/08/7-battery-stocks-for-high-powered-gains/. The usual stock market risks (liquidity, sentiment, etc.). This close-knit relationship means good things for investors who want to be a part of Tesla’s future growth but can’t quite afford the premium stock price. It’s taken a while to get solid state right. Markay Latimer Review [Profit Zone, Net Worth]. Having battery technology that is even further ahead of that offered by other automobile manufacturers could drive Tesla EV sales. 1 and a large customer base. Nonetheless, it is still worthwhile taking a look at the sector, and given there are numerous reports of battery shortages (and low quality issues), this may result in some improvement in pricing power to the leading battery manufacturers, and hopefully improving profits. Batteries of the future will be smaller and more efficient, ensuring that the devices they power can be used longer between charges. 2019 net profit margin is 10.18% and 2020 is 9.8%. In doing so, it will have more flexibility in selling in higher volume if prices and demand levels are favorable. Kensington Capital Acquisition Nikola Major battery manufacturers determine a products limitations by strategically calculating voltage capacity for cells. CATL's financials chart below forecasts revenues to increase strongly, but margins are forecast to fall, albeit from good levels compared to peers. Deleveraging its balance sheet to a net leverage ratio of 4 times. The following is more a discussion on the investment side of the top 5 Li-ion battery manufacturers. China's CATL is the world's number 2 battery manufacturer and China's number 1 battery manufacturer with huge expansion plans. General Motors Choosing the best battery stock to round out your portfolio depends on your short-term and long-term financial goals, as well as the amount you wish to invest. 2) Contemporary Amperex Technology Co. Ltd. (CATL)[SHE:300750] Price = CNY 75.80. 2019 PE is 42.4 and 2020 PE is 35.8. Analysts' consensus is a hold with a price target of JPY 1,061 representing ~17% upside. Though JCI sold its battery unit, it still has institutional knowledge around the energy storage solutions market. These battery manufacturers are in the lead for the business. Their recent Toyota alliance could lessen this risk over time. With growth prospects in other markets, investors could get some diversification away from battery suppliers. According to Tesla, the plan for Gigafactory 3 is to produce battery cells along with Model 3 and Model Y cars, at an initial production rate target of 250,000 electric cars per year. Clearly, LG Chem is the number 1 choice from the traditional ICE manufacturers (outside China), which may prefer not to buy from electric car competitors such as Tesla and BYD Co. CATL and BYD Co. are the two Chinese giants. EVE Energy Co Ltd is a China-based company. Li Auto The lithium-ion battery manufacturers has not been my past favorite sector due to concern of falling battery prices and risk of rising raw material costs squeezing profit margins. Enphase will expand its IQ7 microinverter regionally. There is a proven demand for portable power, and companies that innovate in this area have a ready-made market to sell superior products. Toyota will own 51% of the venture while Panasonic will own the remaining 49%. Overcoming the limitations of today’s batteries is at the top of their to-do lists. 2019 debt is estimated at JPY 122.5B (~US$8.8B). Albemarle noted on its conference call that global sales of electric vehicles rose by almost 60%. More details on LG Chem and their raw materials supply source here. The recent Toyota/Panasonic collaboration has large potential given Toyota's size. The company generated sales of $292 million for lithium. BEIJING EASPRING MATERIAL TECHNOLOGY CO.,LTD. For the best Barrons.com experience, please update to a modern browser. EVE Energy North America strives to deliver the best in high-value, high-quality products EVE is an expert and leader in developing and manufacturing of lithium battery, including lithium thionyl chloride (Li/SOCl2) cells, lithium manganese dioxide (Li/MnO2) cells, Lithium rechargeable cells, and can provide customized portable power source solutions and OEM services. At the midpoint (30%), that is a 15 fold increase in electric car demand to 2030, hence underpinning the 10 fold Li-ion battery demand forecast. Source: Bloomberg NEF 2019 Electric Vehicle Outlook. Albemarle is focused on raw lithium and developing new applications for use of this material. LG Chem needs to expand to at least 170GWh in 2024 to meet its growth target.