5 EV battery stocks to watch out for potential multibagger returns

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As the cost and affordability of EVs drops in the coming years, we are not far from when most vehicles will be electric. These companies can be greatly benefited by the changes in the automobile sector from IC Engine vehicles to EVs, as the prime commodities that will be used in EVs are copper and aluminium. Component makers are understanding that investing in EV component technology and capacity is a matter of survival. EV manufacturing companies are spending lots of capital and energy on charging station infrastructure. The top EV stocks in the commercial vehicles space include Tata Motors, Olectra Greentech, JBM Auto, Ashok Leyland, SML Isuzu, Eicher Motors, and M&M. In this article, let’s take a look at top EV stocks from each space and what kind of returns they are generating for investors.

Who are the top 5 lithium producers?

Australia accounted for 52% of global lithium production in 2021 and was the #1 lithium mining country in the world. Chile ranked #2 with its 24.5% share followed by China's 13.2% share. Overall, Australia, Chile and China produce 90% of lithium production in the world.

The cells were originally developed for use in launch vehicles and satellites. The company has tied up with a world-leading provider of high quality energy storage solutions to manufacture Lithium-Ion batteries to cater to India’s rapidly growing EV market. Furthermore, its existing relationships with top automotive players propel it forward. The strong growth prospects offered by this sunrise sector have given rise to severalIndian EV battery manufacturers.

The company is making strong inroads in lithium battery manufacturing and is setting up large manufacturing capacities worldwide. TATA Chemicals has a 127-acre complex in Dholera, Gujarat, that can produce up to 10 GW of active materials, Li-ion cells, and batteries annually, as well as recycling operations. By 2021, the company plans to commission a commercial pilot cell production facility, which, depending on market demand, may grow to 3 to 5 GW by 2025, at an investment of INR 800 crores. The cells will be used in both automobile and stationary energy storage applications. The rapid penetration of electric vehicles in India will drive the need for lithium ion battery manufacturing in the country.

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This meteoric rise has nudged investors to search for companies that may benefit from the EV disruption. At present, the electric vehicle space is dominated by Elon Musk’s electric vehicle and battery maker Tesla. ‘I think we should load up on the company’s shares as it has big plans on the EV front. This is definitely going to be a big positive for the company’s share price,’ he added further. The modus operandi observed is that once a client pays amount to them, huge profits are shown in his account online inducing more investment. However, they stop responding when client demands return of amount invested and profit earned.

Has recently warned of a “sharp correction” in the price of lithium. The investment bank sees a decline of 10% during the second half of 2022. A further drop of 70% from current prices by 2023 could be in the cards. Trade Brains is a Stock market analytics and education service platform in India with a mission to simplify stock market investing. You can now get the latest updates in the stock market on Trade Brains News and you can even use our Trade Brains Portal for fundamental analysis of your favourite stocks.

Which country has the most untapped lithium?

Chile has 9.2 million tons of lithium in total. As a result, it is first in the list of lithium reserves by country by some distance. However, there are some other countries that have significant reserves of lithium, as well. Australia has the second-largest lithium reserves in the world with 5.7 million tons.

If Tata Motors can retain its market share by innovating and building low-cost EVs, then it is set to be one of the most promising EV stocks in the market. It is set to invest Rs 1,200 crores in future technologies and electric vehicles in the next four years. The company is already a part of the EV segment with one product – TVS neural network xor iQube, an electric scooter. The Company’s Industrial and Automotive batteries are exported to 32 countries across the globe. The company is a 75-year-old market leader in the lead-battery space. It is also the largest lead-battery manufacturer in India, offering a wide range of products in the automotive and industrial sectors.

Tata Elxsi Ltd has played a key role in developing Tata Motor’s Nexon EV. It is also involved in e-vehicle testing with functional testing, diagnostic tests, drive scenarios, and range verification of EV manufacturers. Tesla also has a lithium supply deal with China-based Ganfeng Lithium, the world’s top lithium company by market capitalization. The deal grants the opencv overview automaker a three-year supply of battery-grade lithium, starting from 2022. The decision announced on 20 January shows how it’s getting increasingly difficult to build new mines – even for commodities at the center of the world’s efforts to decarbonize. With growing concerns about future supply of lithium, prices have spiked to records this year as demand surges.

Amarraja (Amaron) – EV

It is also planning to expand its alloy wheel business as the alloy segment will see a massive demand from OEMs in the EV segment. Apart from the joint venture with Reliance Industries, Mahindra & Mahindra is also looking to expand its collection of EV cars. The company is set to launch 16 electric vehicles by 2027 across SUV and light commercial vehicle segments. It also plans to invest Rs 3,000 crores in the electric vehicle segment in the next three years. Tata Motors will be investing $2 Billion in the EV space in the next five years. It has already launched a range of EV cars – Tata Nixon EV, Tata Tigor EV etc.

lithium stocks 2021

One of the major factors behind the higher costs of EVs are their lithium-ion (Li-ion) batteries. Some estimates suggest that lithium-ion batteries, which make up the majority of all batteries across all sorts of electronic devices, contribute to percent of EVs’ costs. The Hinduja group’s flagship company, Ashok Leyland, has a long history in the domestic medium and heavy commercial vehicle (M&HCV) industry. The company has a strong brand name and a well-diversified distribution and service network across the country.

Company Info

Hero Electric has already announced a collaboration with Bengaluru-based EV charging start-up Charzer to establish one lakh charging stations across India. Here’s how the stocks have performed over different time durations. The top players in this segment are Amara Raja Batteries, Exide Industries, and Kabra Extrusion Technik. Although EV stocks have the potential to deliver huge gains, you should be very careful about which EV stock to invest in. Pay 20% upfront margin of the transaction value to trade in cash market segment.

It has major interests in electric buses, composite insulators, amorphous core-distribution transformers, data analytics, and IT consulting. Tata Motors was one of the first companies to develop a fully electric commercial vehicle on its own. Tata Motors is already the leader Remote C# Developer Jobs In October 2021 in the electric passenger vehicle segment with a share of more than 70%. Thanks for providing this valuable information, ev stocks will buzz soon in coming days and turn into multibaggers. SML Isuzu Ltd, is one of India’s largest manufacturers of small buses and trucks.

Who owns the biggest lithium mines?

Lithium producer Tianqi Lithium, a subsidiary of Chengdu Tianqi Industry Group, headquartered in China, is the world's largest hard-rock lithium producer. The company has assets located in Australia, Chile and China.

But this EV stock has grown by 115.59% between December 2020 and 2021. Even large-cap EV stocks seem to be enjoying the rally in the EV sector. Under the deal, Liontown will supply up to 100,000 dry metric tonnes of spodumene concentrate in the first year that will be produced at its under-construction Kathleen Valley Lithium Project in Western Australia. The supply will be increased to 150,000 DMT per annum in subsequent years. The Serbia government has revoked the licenses for lithium mining to Rio Tinto, an Anglo-Australian multinational mining organisation.

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In 1996, Moli Energy produced the first commercial lithium-ion batteries with a lithium manganese oxide cathode. Meanwhile, L&T Technology’s focus on disruptive businesses give it an edge over peers. It has invested in electric, autonomous and connected vehicles, medtech, 5G, artificial intelligence, and digital products.

Lithium ions move from the anode to the cathode during discharge, with the flow reversing when the battery is charged. The electric vehicle megatrend is a once in a century revolution, happening right in front of us. The revolution has taken the auto sector by storm with all segments ripe for disruption. Gujarat Fluorochemicals has forayed into new age business including chemicals & fluoropolymers for EVs, batteries, solar panels, hydrogen fuel cells. The company is in the process of setting up an integrated battery chemicals complex. However, companies are now accelerating plans to produce lithium-ion cells in the country, hoping to take advantage of Rs 180 bn worth of government subsidies.

From the technological world to the financial world, things have changed. You can try and look around yourself and I am sure you will find a million things that can prove the statement that I just stated. Never miss the most relevant stories in the solar and renewable sector everyday. BMS active equalization function, can achieve maximum delayed service life.

Therefore, by selling the covered call, the investor has some protection against a potential loss in the case of a decline in the underlying shares. An unorganised market takes a market share of 30-40% of the market, leaving the rest for the organised market. It has been observed that local manufacturers in the unorganised market provide a 20-30% cheaper option than branded battery products with similar configurations.

lithium stocks 2021

But it has signed a memorandum of understanding with Indian Space Research Organisation for transferring lithium-ion cell technology, which is vital for EVs. Indian Oil Corporation Ltd is the largest oil marketer in India. In the EV space, it is working on aluminium air battery technology for EVs. It has also set up 257 EV charging stations and 29 battery swapping stations in India. Even companies involved in electric vehicle charging and battery manufacturing are EV stocks.

This metal is third on the periodic table, the lightest solid element on earth, and an essential material in the lithium-ion batteries used for electric vehicles and energy-storage systems. Exide Industries, a manufacturer of automotive and industrial batteries, plans to invest Rs6,000 crore in a production facility for 12 GWh lithium-ion cells in Karnataka over the next 8–10 years. According to a BusinessLine article, the first phase, which has a capacity of 6 gigawatt-hours, is anticipated to be finished in 27 to 30 months. The company has tied up with a world-leading provider of high-quality energy storage solutions to build lithium-ion batteries to cater to India’s booming EV market. Apart from this, its existing relations with the top automotive players give it a leg-up.

lithium stocks 2021

We have wide range lithium battery for commercial, residential and EV solutions. Loom Solar, a lithium battery manufacturer, provides a wide range of batteries from small to large capacity for your home, office, school, hospital, restaurants, etc. Please visit our website to see the wide of range of products that we offer. They are becoming fast popular and are leaving behind their contemporaries like lead acid batteries. Lithium batteries are gaining a lot of traction in consumer electronic devices because of their low weight, high energy density, and longer lifetimes. Now, they are being used in energy storage and electric vehicles as well.

Top EV manufacturers import a large proportion of lithium-ion batteries from China. Top EV manufacturers import a large chunk of lithium-ion batteries from China. In November 2021, Livent introduced LIOVIX, a patented lithium metal product that can increase the performance of lithium-ion batteries while lowering manufacturing costs and ensuring environmental sustainability.

  • The implication is that because of the sheer size of the market and funding available, almost all of the disruption in the biotech space happens in the US.
  • Select automobile companies which are manufacturing EVs in the two, three, and four wheeler segments.
  • However, the second largest economy in the World is an indispensable component of the global supply chain and has robust domestic consumption.
  • The company aims to recycle 500 tonnes of used Li-ion batteries, to recover valuable metals such as lithium, cobalt, nickel, and manganese.
  • However, going forward, it is expected that the organised market will consolidate through the acquisition of small players by larger ones.
  • Although lithium’s prices are increasing with demand, the preference for Lithium for EV batteries hasn’t dwindled.

The author is a Certified Financial Planner with 5 years experience in Investment Advisory and Financial Planning. Her strength lies in simplifying complex financial concepts with real life stories and analogies. Her goal is to make common retail investors financially smart and independent. Fiem Industries Ltd is one such EV stock which is on everyone’s radar. The company is the sole supplier to Ola Electric for head lamps, tail lamps, indicators, and other components.

Lower recharge time and maintenance leads to longer shelf lives. The Union Cabinet approved the PLI scheme on ACC battery storage with an outlay of Rs. 18,000 crores to make India self-reliant in the manufacturing of advanced storage technologies. India currently imports battery storage equipment worth Rs.20,000 crore. Companies like Reliance Industries, L&T, Exide, Amara Raja, Lucas TVS, Mahindra and Mahindra, and Ola are looking at setting up ACC battery storage manufacturing in India. India is targeting to establish a total of 50 Gwh of battery storage capacity over five years.

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