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Top 5 Electric Car Battery Stocks to Buy in 2024

Top 5 Electric Car Battery Stocks
Nemanja Curcic

Summary: As the world shifts towards electric vehicles, there is a growing demand for new battery solutions that extend the range of vehicles and increase the cars’ performance. As a result, many electric car battery companies experienced a surge in growth and revenue, leading investors to pursue and buy their stocks. This guide will showcase the top 5 electric car battery stocks and show investors how to buy them using a regulated online brokerage like eToro.

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eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

What are electric car battery stocks?

The global automotive sector continues its undeterred shift towards EVs, as some projections show that the worldwide sales of electric cars for 2023 will reach 14 million, an increase of approximately 33% over the previous year, with the Chinese market expected to embrace electric vehicles en-masse

Producing EVs in numbers as high as these requires abundant investing in electric car battery companies, which puts their stocks into the spotlight for investors looking to benefit from this trend.

5 best electric car battery stocks to buy this year

Concluding our comprehensive research, we have made our choice of the top 5 electric car battery stock picks:

1. Tesla

Tesla, Inc. (NASDAQ: TSLA) is the world’s most valuable EV manufacturer and among the most prominent global clean energy and battery storage suppliers. Employing over 127,000 people and occupying the number one position in the S&P 500 index, it is one of the most recognizable brands today. 

Top 5 Electric Car Battery Stocks to Buy: Tesla homepage screenshot.
Tesla homepage screenshot. Source: tesla.com

Besides cars, Tesla is committed to sustainable energy, robotics, and artificial intelligence. Already known for advanced solar energy and battery storage products, it intends to produce its own electric car batteries. As the uncontested force in the EV market, Tesla’s stock remains potentially one of the best electric car battery investment opportunities.

TSLA stock price today


2. BYD

BYD Company Ltd. (SEHK: 1211) is a Chinese multinational company prominent in the electric car, electronics, and energy sectors. Established in 1995 in Shenzhen, BYD has a significant global presence in the automotive, energy storage, solar panels, and electronics markets.

Top 5 Electric Car Battery Stocks to Buy: BYD homepage screenshot.

BYD is one of the leading manufacturers of electric cars and plug-in hybrid vehicles, including electric buses, trucks, sedans, and SUVs. Furthermore, the company’s substantial battery technological expertise makes BYD one of the top electric car battery stocks to buy this year. Pledging to uphold green technology focusing on innovation, BYD’s electric car battery contribution makes it a crucial player in the global electric car market. 

01211 stock price today


3. Albemarle

Albemarle Corporation (NYSE: ALB) is one of the most significant lithium providers of electric car batteries in the world. Additionally, it is among the most prominent specialty chemical producers worldwide.

Top 5 Electric Car Battery Stocks to Buy: Albemarle homepage screenshot.
Albemarle homepage screenshot. Source: albemarle.com

Headquartered in Charlotte, North Carolina, Albemarle provides lithium, bromine, and catalyst solutions to both the American and global markets. Employing a workforce of nearly 7,500 and playing a vital role in the industry, this company offers one of the top electric car battery stocks to investors looking for exposure in the automotive and battery industries.

ALB stock price today


4. QuantumScape

QuantumScape (NYSE: QS) is one of the chief American and global solid-state lithium car battery manufacturers. Striving to achieve more densely packed energy, longer battery life, better reliability and safety, and faster charging, it is a potentially lucrative opportunity for investors looking to invest in electric car battery stocks. 

Top 5 Electric Car Battery Stocks to Buy: QuantumScape homepage screenshot.
QuantumScape homepage screenshot. Source: quantumscape.com

The company was established in 2010 at Stanford University and has grown exponentially since, employing a workforce of 800 and enjoying the backing of people like Bill Gates and companies like Volkswagen.

QS stock price today


5. Sociedad Química y Minera

Sociedad Química y Minera (NYSE, BCS: SQM) is a Chilean company involved with the chemical and mining industries and of special importance to the car battery sector. Founded in 1968, SQM is the world’s primary producer of lithium, an integral component in the transition to renewable energy, particularly with car batteries. Additionally, it is a leading supplier of specialty plant nutrients, industrial chemicals, and iodine. 

Top 5 Electric Car Battery Stocks to Buy: SQM homepage screenshot.
SQM homepage screenshot. Source: sqm.com

Besides electric car batteries, buying SQM stock exposes investors to the agricultural and electronics sectors. Adhering to ecological principles and encouraging the global transition to renewables, this company could be especially attractive to eco-aware stock traders

SQM stock price today


Where to buy electric car battery stocks

You can invest in electric car battery stocks within minutes using an online brokerage platform, and our preferred choice is eToro. Enjoying widespread popularity with over 30 million registered accounts, it stands out for its robust features, including:

  • Commission-free stock and ETF trading; 
  • 2,000+ stocks from 17 exchanges;
  • Fractional shares available;
  • User-friendly platform.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

Pros and cons of buying electric car battery stocks

Pros

Pros

  • Technological advancements: Battery technology is rapidly advancing, and companies that are at the helm of these innovations could see substantial gains. Improved energy density, faster charging times, and longer battery life represent potential technological breakthroughs;
  • Surging market: The demand for electric vehicles is exponentially increasing as the world transitions to renewable energy sources. Electric car battery stocks are expected to benefit from this trend;
  • Environmental cause: Buying electric car battery stocks aligns with the global transition towards sustainable and eco-friendly technologies. It can be seen as an example of a socially responsible investment;
  • Government subsidies: Governments worldwide offer incentives and subsidies to boost the adoption rate of electric vehicles. Companies revolving around the production of electric car batteries may benefit from such initiatives.
Cons

Cons

  • Technological risks: Battery technology is still rapidly evolving, and the quick and volatile progress carries risks associated with research and development. Technological breakthroughs can be unpredictable, and investing in unfamiliar technologies carries inherent hazards;
  • Competition: The electric car battery stocks are at risk of a competitive market, as several companies vie for market share, which can impact profit margins and market dominance;
  • Production challenges: Scaling up manufacturing to meet rising demand for EVs can present logistical and operational challenges for companies in the car battery industry;
  • Supply chain problems: The supply chain for critical raw materials, such as lithium, cobalt, and nickel, can be a potential risk. Dependence on a limited number of suppliers or geopolitical issues affecting the supply chain can impact production and increase costs.

If you are eager to dive deeper into the EV market, feel free to check out our other guides:

Common mistakes to avoid when investing

Make sure to avoid these common investing mistakes:

  • Lack of research: Research the electric car battery stocks in detail, along with the market state of the EV automotive sector, before investing;
  • Lack of strategy: Set your goals before you spend any money;
  • Staking everything on one asset: Always diversify your portfolio;
  • Falling prey to scams: Avoid illegal platforms and suspicious deals.

Disclaimer: The content on this site should not be considered investment advice. Investing is speculative. When investing, your capital is at risk.

FAQs about electric car battery stocks

What are electric car battery stocks?

Electric car battery stocksare shares of companies in the renewable materials, energy storage, and automotive sectors that contribute to the world’s transition towards improving energy storage of electric vehicles.

Is it safe to invest in electric car battery manufacturers' stocks?

Investing in individual stocks carries an inherent risk, and electric car battery stocks suffer the same trend. Perform your own research and follow the guidelines provided in this article before you spend any money.

How to invest in EV battery stocks?

Investing in electric car battery stocks is as simple as investing in any other company; you need to register an account with an online investing service like eToro, transfer some funds, and buy the shares.

What are the best EV battery stocks to buy in 2024?

Some top electric car battery stocks to invest in this year include Tesla, BYD, Albemarle, QuantumScape, and SQM.

Highly Rated Stock Trading & Investing Platform

  • Invest in 2,800+ stocks and other assets including 70+ cryptocurrencies and commodities.

  • 0% commission on buying stocks - buy in bulk or just a fraction from as little as $10.

  • Copy top-performing traders in real time, automatically.

  • Regulated by financial authorities including FCA and FINRA.

2.8 Million Users
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk. eToro USA LLC does not offer CFDs, only real Crypto assets available. Don’t invest unless you’re prepared to lose all the money you invest.

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