As the electric vehicle (EV) revolution progresses, many companies are working on developing batteries for EVs that are superior to those that are available now. Specifically, firms are seeking to create EV batteries that are safer, can be charged quicker and have a higher capacity. Companies that can improve these metrics will surge their stock price by increasing their bottom line and staying ahead of their competitors. As Global Newswire recently pointed out, “Battery market size was valued at $112.10 billion in 2021 and is predicted to reach $406.08 billion by 2030.” Given the EV battery market’s rapid growth over the longer term, firms that produce superior EV batteries will indeed be millionaire-maker stocks. Here are three battery stocks to buy that I believe fit the bill.
Solid Power (SLDP)
Solid Power’s (NASDAQ:SLDP) solid-state batteries retain more energy than lithium-ion batteries, which are currently used to power most EVs. Solid-state batteries are also considered to be safer than lithium-ion batteries and can be charged quicker.
Validating SLDP’s technology, BMW (OTCMKTS:BMWYY), Ford (NYSE:F) and Hyundai (OTCMKTS:HYMTF) have all invested in the start-up. Moreover, as I reported in a previous column, “BMW is researching the battery maker’s technology and plans to build batteries based on SLDP’s system at its own plants.” Even more impressively, the German automaker is looking to begin testing the batteries this year.
Major corporations also believe that SLDP is one of the more promising battery stocks to buy, as Vanguard increased its total ownership to nearly 5.7 million shares. JPMorgan Chase (NYSE:JPM), State Street (NYSE:STT), Morgan Stanley (NYSE:MS) and Wells Fargo (NYSE:WFC) also made major purchases.
Toyota (TM)
In 2026, Toyota (NYSE:TM) has plans to release EVs equipped with “Li-ion batteries” that will have an impressive 620 mile range and be able to charge up to 80% in 20 minutes.
Shortly after that, Toyota intends to introduce its first “all-solid-state batteries.” These batteries will be able to jump from 10% charged to 80% charged in ten minutes. They will also be able to travel 740 miles on a single charge. It is clear that Toyota intends their EV owners to be able to drive an entire day without recharging. With Toyota’s EVs’ predicted popularity, the stock will quickly become one of the top battery stocks to buy.
Proterra (PTRA)
Proterra (NASDAQ:PTRA) is a company that lacks competition because of its specialization in heavy-duty electric vehicle batteries. The firm’s high range batteries can fit in a variety of vehicles and withstand many harsh environments.
Proterra reported that the revenue of its Powered and Energy units jumped 49% last quarter, versus the same period last year, to $35 million. Roger Nielson’s, former CEO of Daimler Truck (OTCMKTS:DTRUY), appointment as chairman of Proterra also bodes well for the company. An executive with such a prestigious resume joining PTRA suggests a bright future for the company. Additionally, Nielsen’s extensive connections will likely help Proterra secure many lucrative deals in the future.
PTRA stock is trading at a forward price-sales ratio of 0.5, making the shares’ valuation very attractive.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.