11 Small Cap EV Stocks to Invest In

2. EnerSys (NYSE:ENS)

Number of Hedge Fund Holders: 30

EnerSys (NYSE:ENS) is strategically expanding its portfolio to meet the growing demand for EV batteries and advanced energy storage solutions. The company focuses on battery technologies, including both lithium-ion and lead-acid batteries, which are essential for the operation of electric vehicles. It is among our best EV stocks to invest in.

It produces high-performance batteries specifically designed for the needs of EVs, which offer reliable energy storage. The NexSys iON batteries cater to industrial applications, including electric forklifts and heavy-duty electric vehicles, further highlighting the versatility of its offerings.

In addition to battery production, EnerSys (NYSE:ENS) provides advanced battery management systems that improve both performance and longevity for EV applications. The systems incorporate monitoring and diagnostic tools, which optimize battery usage and maintenance.

A recent announcement on September 20 made by the company outlined that it has been selected to enter negotiations for a substantial $199 million award from the U.S. Department of Energy’s Office of Manufacturing and Energy Supply Chains.

The funding is part of a broader initiative under the $62 billion Bipartisan Infrastructure Law, aimed at advancing the domestic battery materials processing and manufacturing industry.

The company plans to invest around $615 million to build and commission a lithium-ion cell production facility in Greenville, South Carolina, over the next four years. Additionally, a further $50 million will be allocated to develop a specialized production line for the U.S. Department of Defense.

The development of this new facility is set to be significant, with plans for a 500,000-square-foot state-of-the-art manufacturing plant. The operation aims to produce a range of lithium-ion cells tailored for commercial, industrial, and defense applications, beginning with an initial production capacity of five-gigawatt hours (GWh) per year.

With federal, state, and local funding combined with incentives from the Inflation Reduction Act, EnerSys (NYSE:ENS) is well-positioned to meet the capital requirements for the gigafactory. The investments in infrastructure and technology, alongside the increasing demand for EVs, present a promising outlook for the company.