In this article, we discuss the 5 best EV battery stocks to buy in late 2022. If you want to see more stocks in this selection, check out the 10 Best EV Battery Stocks to Buy in Late 2022.
5. Microvast Holdings, Inc. (NASDAQ:MVST)
Number of Hedge Fund Holders: 12
Microvast Holdings, Inc. (NASDAQ:MVST) is a Stafford, Texas-based battery manufacturer founded in 2006. The company became public in 2021 following a merger with a special purpose acquisition company (SPAC). The batteries manufactured by Microvast Holdings, Inc. (NASDAQ:MVST) are installed in over 30,000 vehicles that are operating in 160 cities globally as of 2022.
On August 18, Colin Rusch at Oppenheimer commenced coverage on Microvast Holdings, Inc. (NASDAQ:MVST) stock with an Outperform rating and a target price of $8. The target price reflects a potential upside of over 312% from the closing price as of October 7. In Q2 2022, Microvast Holdings, Inc. (NASDAQ:MVST) observed a YoY revenue growth of 93%. The company also reiterated its FY22 guidance for a 35% – 45% YoY revenue increase.
Rusch believes that Microvast Holdings, Inc. (NASDAQ:MVST) is innovating to improve the performance of its batteries and lower the use of raw materials. This is integral because the mass adoption of batteries is hindered by the limited supply of raw materials. Microvast Holdings, Inc. (NASDAQ:MVST) is also receiving support from the concerned offices in the US Department of Energy for these technological advancements.
4. FREYR Battery (NYSE:FREY)
Number of Hedge Fund Holders: 16
FREYR Battery (NYSE:FREY) is a Luxemburg-based provider of lithium-ion-based battery cells. The company is working on achieving a production capacity of 43 gigawatt-hours (GWh) by 2025 and becoming one of the leading battery cell suppliers in Europe.
In an update issued to investors on September 21, Adam Jonas at Morgan Stanley increased the price target on FREYR Battery (NYSE:FREY) from $18 to $26 and maintained an Overweight rating. The analyst believes that FREYR Battery (NYSE:FREY) will evolve in the future from its current status of being a Norwegian battery start-up and will have a strong presence in the global battery industry in the next 10 years, making it one of the best EV stocks to invest in now.
FREYR Battery (NYSE:FREY) approved the construction of the Giga Arctic battery facility in June. The factory will be able to produce roughly 29-gigawatt hours of battery capacity every year. This would be sufficient to power about 500,000 EVs annually. The company has also entered into a strategic partnership with Hana Technology to develop automation solutions for FREYR Battery’s (NYSE:FREY) Customer Qualification Plant.
3. Solid Power, Inc. (NASDAQ:SLDP)
Number of Hedge Fund Holders: 17
Solid Power, Inc. (NASDAQ:SLDP) is a Louisville, Colorado-based producer of solid-state rechargeable batteries for EVs and other applications. Solid Power, Inc. (NASDAQ:SLDP) has secured the third position on our list of the 10 best EV battery stocks.
Solid Power, Inc. (NASDAQ:SLDP) has partnerships with some of the best EV companies, such as BMW and Ford. The company anticipates beginning commercial-level production by 2026. Experts term Solid Power, Inc. (NASDAQ:SLDP) as a game changer as it would provide the EV industry with solid-state batteries that have a shorter charging time and a longer range.
As of Q2 2022, Solid Power, Inc. (NASDAQ:SLDP) has a reserve of $553 million of cash and cash equivalents. According to the management, this would be sufficient to fund the company’s operations till 2026. Experts think Solid Power, Inc. (NASDAQ:SLDP) will continue to experience an increase in battery sales which would help the company offset its capital expenditures (CapEx) costs.
Of the 895 hedge funds tracked by Insider Monkey at the end of Q2 2022, Solid Power, Inc. (NASDAQ:SLDP) was held by 17 funds.
2. QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 19
QuantumScape Corporation (NYSE:QS) is a San Jose, California-based company that is a developer of lithium-powered solid-state batteries. The company has the distinction of having Bill Gates and Volkswagen as key investors.
Experts believe that QuantumScape Corporation (NYSE:QS) is becoming a leading name in the EV battery segment. The company has received interest from some of the best EV stocks and has also entered into a joint venture (JV) agreement with Volkswagen for a solid-state battery pilot-line facility. It is believed that QuantumScape Corporation (NYSE:QS) has the potential to play a significant role in enhancing performance and lowering the costs of EV batteries in the future. Compared to conventional lithium-ion batteries, QuantumScape Corporation’s (NYSE:QS) solid-state batteries can have an energy density that is 50% to 80% stronger. The company is on track to achieving key milestones for 2022.
As of Q2 2022, QuantumScape Corporation (NYSE:QS) was held by 19 hedge funds.
1. Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 39
Albemarle Corporation (NYSE:ALB) is a Charlotte, North Carolina-based specialty chemicals company that has the distinction of being the biggest lithium producer in the world. Lithium is critical to fulfilling the needs of the EV battery industry.
Albemarle Corporation (NYSE:ALB) is forecasting a production increase of 20% YoY for its refined products due to strong demand for lithium and its rising prices. The company intends to serve the end markets to the maximum. During Q2 2022, the sales of Albemarle Corporation’s (NYSE:ALB) refined products increased by 178% YoY to $892 million.
Albemarle Corporation (NYSE:ALB) is also working on developing its midstream segment aggressively. Given the geopolitical tension between US and China, this is a wise decision, as 90% of the lithium refining capabilities are presently located in China, implying a need for geographical diversification. Albemarle Corporation (NYSE:ALB) is also forming tolling arrangements to gain a strategic advantage against its industry peers, allowing the company to sustain its position as one of the best EV stocks in the market.
You can also take a peek at the 10 Best Ethanol Stocks To Invest In and 14 Best Financial Stocks To Invest In.
