Forever batteries could take the capabilities of battery-powered vehicles and devices to a completely new level, significantly increasing battery life and enabling lightning-fast charging. In addition, these batteries are safer compared to the batteries in use today as they have a much lower risk to explode or cause a fire.
In this article, we’ll feature three of the best forever battery stocks that could see significant growth in the future. Before we continue, however, let’s learn the basics of what a “forever battery” actually is.
Key highlights:
- Forever batteries, also known as solid-state batteries, can store a much larger amount of energy compared to standard batteries of the same weight and size.
- Forever batteries also charge significantly faster than the batteries in use today.
- Currently, producing forever batteries is very expensive, but efforts are being made to bring the technology to the mainstream market.
- We feature stocks and ETFs you can invest in if you want to get exposure to this emerging technology.
What is a forever battery?
The term “forever battery” is often used to refer to solid-state batteries (SSBs). These batteries use solid electrolytes instead of the liquid or polymer gel electrolytes that are widely used today. Due to using solid electrolytes, forever batteries can achieve much higher energy density — in other words, they can contain much more energy relative to their weight and size compared to their liquid electrolyte counterparts. SSBs can be more compact than conventional batteries, while having a longer battery life and charging faster.
However, SSBs are much more expensive to manufacture, which means that the technology is not yet ready for the mass market. According to experts, we’re unlikely to see mass production of these “forever batteries” until at least 2030, but it might take even longer for the technology to become viable at a massive scale.
Of course, the fact that SSB technology still has a way to go means that there is a lot of potential room for growth, which could bode well for early investors.
Before we continue, it’s important to to note that investing in individual stocks is risky, especially when it comes to companies primarily focused on new technologies. You should conduct your own research before making any investment decisions. Never invest more than you are willing to lose.
The best forever battery stocks
We’ll showcase three companies that are working on forever batteries and could see significant growth if the technology does take off in the coming years and becomes commercially viable for the mass market.
- QuantumScape - Forever battery company backed by Volkswagen
- Solid Power -A low market cap forever battery stock
- Toyota -The Japanese giant is making significant investments into SSBs
1. QuantumScape — Forever battery company backed by Volkswagen
QuantumScape is a company that’s working on solid-state batteries using lithium-metal. QuantumScape is attempting to reduce the costs and manufacturing complexity of forever batteries by implementing an anode-less cell design and a proprietary solid ceramic separator. According to QuantumScape, its batteries could provide an improvement of between 50% to 80% to the range of today’s top of the line electric vehicles.
Since it was founded in 2010, QuantumScape has attracted several prominent investors, most notably the Germany-based automotive giant Volkswagen, which has invested around $300 million into the company so far.
However, QuantumScape has also seen some controversy. In 2021, short-seller firm Scorpion Capital issued a scathing report on QuantumScape, calling the company a “pump and dump SPAC scam” and even comparing it to the now-defunct health tech company Theranos. Scorpion Capital alleged that QuantumScape’s claims about its battery technology were misleading or even fraudulent in some cases.
The company trades on the New York Stock Exchange under the ticker QS. At the time of writing, it has a market capitalization of approximately $3.47 billion.
2. Solid Power — A low market cap forever battery stock
Solid Power is a company developing solid-state battery technology. It utilizes Sulfide-based solid electrolytes, which it claims strike the best balance between conductivity and suitability for manufacturing with industry-standard equipment. Solid power calls its batteries “all-solid-state batteries”.
The company has a joint development agreement with German automotive giant BMW, which has enabled BMW to launch a prototype line for solid-state batteries at its CMCC facility in Parsdorf. BMW plans to showcase a vehicle demonstrating solid-state battery technology before 2025. On the other end of the deal, BMW has agreed to pay Solid Power up to $20 million provided that the company achieves certain agreed-upon milestones.
In 2023, Solid Power announced that it was set to receive funding from the U.S. Department of Energy for the development of its batteries. The company could receive up to $5.6 million from the DoE.
Solid Power trades on the NASDAQ stock exchange under the ticker SLDP. It currently has a market cap of $390 million.
3. Toyota Motors — The Japanese giant is making significant investments into SSBs
Toyota is a Japanese automotive industry giant with a market capitalization of over $234 billion. It has well over 350,000 employees and is among the world’s 50 most valuable companies.
Obviously, Toyota’s operations extend far beyond solid-state batteries, but the company is actively working on battery technology and plans to manufacture SSBs that are ready for use in electric vehicles by 2027. In 2021, Toyota announced a $13.6 billion investment into battery technology, with part of the investment going towards the development of solid-state batteries.
Toyota executive Keiji Kaita stated that the company is capable of producing an SSB that can be charged in 10 minutes or less while delivering a stunning 745-mile range. The company partnered with Panasonic through a joint venture to develop solid-state batteries. The joint venture launched in 2020 and has over 5,000 employees in total.
Toyota will have to contend with other major competitors such as BMW, Mercedes-Benz and Volkswagen, who are also investing in solid-state batteries. However, Toyota has made some truly significant investments into this technology, which could help it offer SSB-powered EVs before the competition.
4.Global X Lithium & Battery Tech ETF
Global X is an asset manager that offers a variety of exchange-traded funds, including an ETF that's specifically designed to provide exposure to companies involved in Lithium mining or the production of Lithium batteries. The Global X Lithium & Battery Tech ETF (LIT), which tracks the Solactive Global Lithium Index, is an investment product that holds a variety of stocks. Here's a few examples:
- Albermarle
- TDK
- Mineral Resources
- Tesla
- Panasonic
At the time of writing, LIT has just over $2 billion in net assets and a total expense ratio of 0.75%. The fund has been on the market since 2010 and has grown by 96% since inception.
For investors that want exposure to the Lithium industry but aren't sure which stocks to pick, the LIT ETF is a compelling option that enables a diversified investment in the sector.
The bottom line
If it becomes possible to mass-produce forever batteries, it would be a significant breakthrough for the range and charging speed of electric vehicles, which would likely accelerate their already increasing adoption even further.
Hopefully, our article helped you find some of the best forever battery stocks to explore at the moment. Investors with a lot of confidence in the technology and a higher risk appetite might want to consider companies that are exclusively focused on solid-state batteries, while more conservative investors might choose established automotive industry players that are making investments in SSB tech.
If you’re interested learning about more topics related to the electric vehicle industry, make sure to check out our article exploring if Tesla is a good stock to buy.
FAQs
What is a forever battery?
The term "forever battery" is often used to describe solid-state batteries (SSBs). These batteries are different from the ones we typically use because they use solid electrolytes instead of liquids or gels. Forever batteries can store more energy for their size and weight, and are much safer because they have a much lower risk to explode or catch fire. In the context of electric cars, forever batteries could mean much faster charging and longer driving distances.
What is a forever battery stock?
The term “forever battery stock” refers to a company that’s involved in the development and production of forever batteries, which is a colloquial term for solid-state batteries, or SSBs. Some companies such as QuantumScape and Solid Power are exclusively focused on SSBs, but automotive giants such as Toyota, BMW, Mercedes-Benz and Volkswagen are also investing in the technology.
