Stocks to buy

The 3 Most Undervalued Battery Stocks to Buy Now: June 2023

In the growing electric-vehicle (EV) industry, investing in undervalued battery stocks is key. With the increasing demand for EVs, battery production is crucial, yet challenging due to material shortages. Companies that have already established strong battery production hold a competitive edge over new entrants. Everyone knows about strong electric car companies like Tesla (NYSE:TSLA) and Toyota (NYSE:TM), but what about those hidden gem companies? Buying low on these can spell big returns in the future!

That said, here are three undervalued battery stocks to buy now.

Lithium Americas (LAC)

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Lithium Americas (NYSE:LAC) is poised to thrive as an excellent battery stock amidst the electric vehicle boom. As automakers embrace electrification, the demand for lithium stocks will soar. LAC, currently trading at around $20, has experienced a 17% year-to-date increase, although it remains below its 52-week high of $33. The company’s ongoing construction of the Thacker Pass Project, which holds the country’s largest lithium deposit and the world’s second-largest, promises a steady revenue stream starting in 2026. This project holds tremendous potential for unlocking substantial value in the years to come.

Moreover, Lithium Americas has achieved a significant milestone with its Caucharí-Olaroz project. It produced its initial batch of lower-than-battery-quality lithium carbonate during the commissioning phase. Additionally, the company has decided to undergo a division. Lithium Argentina concentrates on projects like Caucharí-Olaroz, Pastos Grandes and Sal de la Puna. Meanwhile, Lithium Americas will prioritize its Thacker Pass lithium project in Humboldt County, Nevada.

With its sites poised to commence operations, this stock holds the possibility of doubling in value. While there is some volatility and inherent risk involved, the significant upside potential cannot be overlooked.

Byd Co. (BYDDF)

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BYD Co. (OTCMKTS:BYDDF), a Tesla competitor, is capitalizing on its advantages and growth potential. The company recently introduced a new EV brand, Fang Cheng Bao, offering a diverse range of vehicles. With impressive sales figures, including 996,476 cars sold in the first five months of this year, BYD is expanding globally, targeting markets like Japan, Europe, and Latin America. As a leading EV battery manufacturer, BYD plans to enhance the production of its lithium iron phosphate Blade Batteries, reinforcing its position in the thriving Chinese EV market.

BYD stock appears undervalued with strong growth potential. Trading at $32 and up 27% year to date, it offers room for further growth compared to Tesla. With a diverse product lineup and expansion plans, BYD provides more options for consumers, potentially driving higher sales and revenue. BYDDF is a promising EV stock for immediate investment.

Investors should consider that BYD is the top-selling vehicle manufacturer in China, surpassing both EVs and non-EVs. Despite trading over the counter and not being listed on a major exchange, BYD often goes unnoticed among investors in the United States who focus on emerging EV companies, particularly within the Chinese market.

Albemarle (ALB)

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Albemarle (NYSE:ALB) remains a lucrative choice for investors seeking to capitalize on the growing EV market. As a leading lithium producer, the company’s revenue is tied to the fluctuating prices of this essential battery component. While market dynamics can cause rapid shifts in lithium prices, Albemarle has proven its resilience. Despite recent challenges like oversupply concerns, Albemarle remains one of the top picks in this sector, driven by several significant factors that contribute to market volatility.

Albemarle is poised to benefit from the increasing demand for lithium as EV adoption surges. With a significant expansion in lithium conversion capacity and ambitious growth targets, the company is well-positioned for future revenue and EBITDA growth. Despite temporary fluctuations in lithium prices, Albemarle demonstrates consistent performance and a strong dividend track record spanning 28 years.

Consider Albemarle as a reliable and promising investment for long-term lithium opportunities. Secure your retirement with high-return lithium stocks by exploring Albemarle’s potential. You will not go wrong choosing this or any of the previously mentioned battery stocks. 

On the date of publication, Chris MacDonald did not have (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 Publishing Guidelines.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.