Panasonic

Stocks of solid-state batteries to recharge your wallet

When it comes to electric vehicles, solid-state battery stocks are expected to be the next big step forward. Solid-state batteries use solid electrolytes. While current lithium-ion batteries use a liquid polymer or gel.

There are a number of advantages to this type of battery chemistry. The most important are higher energy density, faster charge times and reduced fire risk. Higher energy density can further ease the range anxiety that has surrounded EVs. The same can be said for faster charge times.

That’s not to say that there aren’t challenges associated with solid-state batteries. Increasing production is difficult, and that’s one of the reasons we haven’t used them in large numbers yet. For example, Toyota plans to introduce solid-state vehicles in 2025. In addition, the cost of these batteries remains high, with current estimates reaching $ 800 / kWh. Li-ion batteries need to hit around $ 100 / kWh for costs to compare with internal combustion vehicles.

So investing in solid-state batteries now is a gamble on the future. If that future becomes a reality, these batteries have the potential to revolutionize an industry that already revolutionary.

Here are the best solid-state battery stocks to invest in today:

  • QuantumScape (NYSE: QS)
  • Samsung (KRX: SSNLF)
  • Toyota Motor Corporation (NYSE: TM)
  • Panasonic (OTC: PCRFY)

Better stocks of solid-state batteries

Now that we’ve defined the best solid-state battery stocks, let’s take a closer look.

QuantumScape

QuantumScape (QS) is today one of the leading technological stocks of solid-state batteries. The company is currently in development lithium-metal cells capable of maintaining over 90% of their lifespan over 1000 charge cycles. With the higher density of solid-state batteries, this could mean only 10% loss of life after around 500,000 miles. Further asserting the legitimacy of its technology, QuantumScape received a $ 300 million investment from Volkswagen and was backed by Bill Gates in its IPO.

QuantumScape was founded in 2010 and is headquartered in San Jose, California. It went public in late 2020 and currently has a market cap of $ 12.8 billion. Currently, its stock has an earnings per share (EPS) of -3.85 and no earnings have yet been released. Unsurprisingly, its share price has remained broadly stable after an initial IPO peak. This is not surprising since its batteries will not appear in production vehicles until 2024 at the earliest. Still, its battery technology is impressive and it has the data to back up its claims.

Samsung

You probably think of Samsung (SSNLF) as a maker of phones and televisions and less of batteries. However, batteries are essential to the operation of some of these devices. And Samsung has embarked on the train of solid-state EV batteries. In its March 2020 announcement, Samsung said it was able to increase the energy density of the battery to 900Wh / L. Thus, its prototype is 50% smaller than conventional lithium-ion batteries. This includes a range of 800 km (497 miles) and over 1,000 charge cycles.

Since SSNLF trades over-the-counter, the stock’s data is not as robust as that of other stocks. However, it is a huge company with a market capitalization of over $ 422 trillion. It also has a forward dividend yield of 2.66 with EPS of 4.33. Its revenue for the third quarter of 2021 was $ 73.9 trillion (about $ 61.9 billion) compared to $ 63.6 trillion last year. Its net profit margin was 12% compared to 9.6% last year.

Read on for more information on solid-state battery stocks.

Toyota

There have been many headlines showing that Toyota (TM) doesn’t seem too keen on electric vehicles. And yet, Toyota has by far the strongest battery patents from any company as of 2018. In fact, it owns more than five times as many solid state patents as Samsung, the second largest holder. Therefore, Toyota has great intentions for solid-state batteries. In fact, Toyota solid-state batteries can go from empty to full in as little as 10 minutes.

Of course, Toyota is another solid-state battery stock company whose business model isn’t limited to batteries. As such, its market capitalization is nearly $ 250 billion. Its stock has a favorable P / E ratio of 5.60 and EPS of 32.08. Additionally, it has a forward dividend yield of 4.46. Its share price rose by more than 50% during the pandemic. This strong trend should continue.

Panasonic

Panasonic (PCRFY) is another multinational conglomerate that produces everything from cameras to beard trimmers. However, Panasonic is also a major supplier of batteries for electric vehicles. At the start of Tesla’s history, Panasonic was its sole supplier of batteries. Although Panasonic recently sold its stake in Tesla, its aspirations to produce batteries are far from over. Indeed, Panasonic is working hard to develop new solid-state battery technology. This will lead to more efficient solid-state batteries.

Panasonic currently has a market capitalization of over $ 26 billion. Its stock has a P / E ratio of 11.36 with EPS of 1. Its stock price was at one point more than double its pandemic low; now it’s a little less than that. The forecast expects the stock to continue rising, making it a great addition to your list of solid-state battery stocks to invest in. Its third-quarter earnings report shows revenue of 1.74 trillion yen (about $ 15 billion), up 4.43 percent from a year ago. Even more impressively, net profit and net profit margin increased by 30% and 25%, respectively.

Is solid-state battery inventory a good investment?

Solid-state batteries have the potential to revolutionize the electric vehicle industry. The advantages of these batteries include higher energy density, longer life and faster charging and reduced fire risk. As a result, several car manufacturers and engineering companies are embarking on the research and development of solid-state batteries.

Still, we likely won’t see these vehicles on the road until at least 2025. Additionally, manufacturing is difficult and the cost per kilowatt hour (kWh) remains high. So investing in solid-state battery stocks now is a gamble on the future. It would be a vote of confidence that solid-state batteries will revolutionize the industry as promised.

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About Bob Haegele

Bob Haegele is a personal finance writer who specializes in investing and retirement planning. His heavy student loan burden made him repay his loans, and now he’s helping others get their finances in order. When he’s not writing he enjoys travel and live music.


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