Top 10 EV Battery Stocks To Invest in the Electric Car Future

As the electric car momentum continues, there has never been a better time to invest in batteries. Here is a list of the top ten EV battery manufacturers and suppliers.

November 24, 2021

Why invest in EV batteries?

Electric vehicle sales are set to explode. New model introductions, government regulation, and dropping technology costs all favor an electric car future. According to UBS Research, electric cars should account for 40% of global car sales by 2030, up from 3-4% today. 

But investors may be better off betting on EV battery manufacturers, not EV carmakers. Many EV startups are unprofitable (or not even producing cars), while traditional automakers are investing heavily in the space. The electric car race is only starting. Instead of trying to pick out the winners, you could invest in the manufacturers that have agreements to supply both the winners and the losers with batteries.

What are EV batteries? Most electric cars and trucks in production today run on rechargeable lithium-ion batteries. The technology was invented in the 1980s and commercialized by Sony in 1991. The first commercial battery-powered electric vehicle, the Tesla Roadster, launched in 2008.

Batteries are the most expensive components of electric cars, at about 30%-40% of their cost. Battery materials include lithium, mined in Chile and Australia, nickel, found in Indonesia, and cobalt, whose supply is dominated by the DRC. The production of actual batteries takes place in China, South Korea, or Japan.

The EV battery industry is expected to see strong growth. According to ResearchAndMarkets.com, the EV battery market should grow at 14% each year between 2020 and 2025, reaching over $38 billion in 2025. Although two-thirds of lithium-ion batteries today go to EVs, they have uses beyond electric cars – for example, in energy storage. Storage will become critical as the world moves to intermittent renewables like wind or solar. New York and California are already making utility companies install more batteries.

How do you invest in EV batteries?

The easiest way of investing in lithium-ion batteries is through EV battery makers or lithium miners and refiners. Other minerals used in EVs are copper, nickel, and cobalt, but it is harder to find cobalt or nickel pure-plays that are not highly speculative. For example, the diversified mining company Glencore (LON: GLEN) is the world’s largest producer of cobalt, but the mineral doesn’t move the needle for the mining giant.

Investing in lithium-ion batteries means investing in China, which was among the first to adopt “new energy vehicles.” According to Benchmark Mineral Intelligence, 77% of global lithium-ion production is based in China. The world’s top EV battery maker, CATL, is also in China, as is BYD, a Warren Buffet favorite.

If you like speculative stories, Quantumscape is a pre-revenue startup developing a lower-cost, higher-performing alternative to the lithium-ion battery.

What are the best EV battery stocks?

EV battery stocks list

  • Contemporary Amperex Technology Co (CATL) (SHE:300750)
  • LG Chem Ltd (KRX: 051910)
  • Panasonic (OTCMKTS: PCRFY)
  • BYD (OTCMKTS: BYDDF)
  • Samsung SDI (KRX:006400)
  • SK Innovation Co (KRX: 096770)
  • Quantumscape (NYSE: QS)
  • Albemarle Corp (NYSE: ALB)
  • Sociedad Química y Minera de Chile (NYSE: SQM)
  • Ganfeng Lithium (OTCMKTS: GNENF)

Here are the top ten EV battery manufacturers and lithium suppliers.

1. Contemporary Amperex Technology Co (CATL) (SHE:300750)

  • Market capitalization: $250 billion
  • 1-year return: 167%

Founded in 2011 and based in Fujian, China, Contemporary Amperex Technology Co or CATL is the world’s largest lithium battery maker. It has 30% of the global market share and over 50% in China. Its scale lets CATL produce batteries more cheaply than its competitors.

Historically focused on Chinese automakers like Nio, Xpeng, and Li Auto, CATL has started working with leading global manufacturers such as Tesla, BMW, Toyota, and Daimler. CATL’s deal to supply Tesla’s Shanghai factory goes on until 2025. CATL is also working to commercialize lithium iron phosphate batteries made without cobalt, an expensive raw material. They are even developing a technology that runs on sodium, a cheap material extracted from salt, instead of lithium.

The stock is a China investor favorite: its shares more than doubled over the past year as Beijing continues to support “new energy vehicles.” The big question for investors is whether CATL can maintain its dominant market share as new competitors come in.

2. LG Chem Ltd (KRX: 051910)

  • Market capitalization: $44 billion
  • 1-year return: -5%

Seoul, South Korea-based LG Chem is the second-largest EV battery producer worldwide. A diversified chemicals company with over $25 billion in revenue, LG Chem makes EV batteries through its LG Energy Solution (LGES) subsidiary. LG Chem is looking to spin off LGES to unlock value in early 2022. Although LGES had experienced recent challenges when some of its batteries caught fire, the battery maker has lucrative partnerships with General Motors and Tesla.

3. Panasonic (OTCMKTS: PCRFY)

  • Market capitalization: $30 billion
  • 1-year return: 11%

The third-largest EV battery supplier worldwide, Panasonic is a Japanese conglomerate that also makes consumer electronics. Panasonic has been Tesla’s oldest industrial partner and main battery supplier for a long time. Though they are no longer exclusive, Tesla and Panasonic partner on the massive Gigafactory in Nevada. More recently, Panasonic has unveiled the 4860 battery, a high-storage technology due to power future Teslas.

4. BYD (OTCMKTS: BYDDF)

  • Market capitalization: $130 billion
  • 1-year return: 55%

The fourth-largest EV battery supplier worldwide, Warren Buffet-backed BYD is also the world’s fourth-largest electric car manufacturer. Founded in 1995 in Shenzhen, China, BYD began as a rechargeable battery maker for mobile phones. It has since expanded into lower-end electric cars, which are primarily sold in China. BYD’s battery technology has successfully reduced the cost of electric cars. Their batteries rely on lithium and iron, which are abundant, while avoiding more controversial and harder-to-source minerals like cobalt. BYD shares have soared over 54% this year.

5. Samsung SDI (KRX:006400)

  • Market capitalization: $43 billion
  • 1-year return: 36%

With over $9 billion in revenue, South Korea-based Samsung SDI is the world’s fifth-largest EV battery supplier. Unfortunately, it is not a battery pure-play – it also makes plasma TV screens, electronics, and semiconductors. Samsung SDI made a splash when it announced an agreement to supply batteries to Rivian. It already has a supply deal with BMW, among other carmakers. However, there are rumors that Samsung SDI is looking to spin off the battery unit from the rest of the business.

6. SK Innovation Co (KRX: 096770)

  • Market capitalization: $17 billion
  • 1-year return: 34%

South Korea-based SK Innovation Co is the sixth-largest EV battery supplier worldwide, though not an EV battery pure-play. The conglomerate with over $28 billion in sales also produces oil, chemicals, and lubricants and runs the largest refinery in South Korea. The oil business means that SK Innovation is not a good fit for environmental, social, and governance (ESG) investors who generally shun oil and gas stocks. However, the battery business is seeing some success. SK Innovation has recently announced a deal with Ford to build battery production facilities in the U.S.

7. Quantumscape (NYSE: QS)

  • Market capitalization: $14 billion
  • 1-year return: 50%

San Jose, California-based Quantumscape is a pre-sales startup developing a solid-state battery. Although solid-state batteries do not power EVs today, they could, in theory, last longer, charge faster and be cheaper and less likely to catch fire than lithium-ion equivalents. The startup’s investors include Bill Gates and Volkswagen.

Quantumscape stock is highly speculative: despite nearly $14 billion in market cap, the startup has zero revenue while spending hundreds of millions on research and development. And commercial batteries are not even expected to ship until 2024 or 2025. The stock has been volatile – it is down from the peak of nearly $115 per share in December 2020 to just $32. There are no guarantees that the batteries will work as expected or fly off the shelf. So invest at your own risk.

8. Albemarle Corp (NYSE: ALB)

  • Market capitalization: $32 billion
  • 1-year return: 99%

Lithium is the material central to making lithium-ion batteries. Charlotte, North Carolina-based Albemarle Corp supplies about one-third of the world’s lithium from its mines in Chile and Australia. Although ALB is not a pure-play lithium company, lithium is the largest segment at about 40% of revenue. Besides lithium, ALB is involved in bromine (used to make fire retardants), catalysts used in oil refining, and applied surface treatments. ALB has over $3 billion in revenue, and it is solidly profitable.

9. Sociedad Química y Minera de Chile (NYSE: SQM)

  • Market capitalization: $17 billion
  • 1-year return: 39%

SQM is another major lithium supplier, with around a 20% market share. SQM hails from Chile and has some of the best lithium deposits in South America. SQM’s access to brine deposits in the salt flats of the Atacama Desert is a key advantage due to low lithium manufacturing costs. Besides lithium, SQM produces fertilizer, iodine, potassium, and industrial chemicals. With about $2 billion in revenues, the company has strong profit margins and pays a dividend.

10. Ganfeng Lithium (OTCMKTS: GNENF)

  • Market capitalization: $35 billion
  • 1-year return: 103%

Chinese producer Ganfeng Lithium is the world’s largest lithium producer, supplying Tesla, among others. Most of the lithium comes from the Mount Marion Project in Australia. In addition to producing and processing lithium, Ganfeng Lithium has a battery business. It makes lithium-ion batteries used in EVs, battery storage, and electronic devices. The company generated nearly $860 million in 2020 revenue, and it is profitable. Ganfeng Lithium is listed on Shenzhen and Hong Kong Stock Exchanges, but it also trades over the counter (OTC) in the U.S.


The EV battery boom is far from over. And lithium-ion batteries have uses beyond the soaring EV production; for instance, in helping store electricity from wind and solar.

NOT INVESTMENT ADVICE. The content is for informational purposes only; you should not construe any such information as investment advice.