What is propelling investments in battery stocks? The global battery sector has experienced remarkable growth over the past decade, primarily fueled by advancements in lithium-powered technology. Electric vehicles (EVs) have transitioned from being a futuristic concept to a common reality.
Electric vehicles are integral in diminishing greenhouse gas (GHG) emissions. In 2021, plug-in EVs, incorporating both all-electric and plug-in hybrid models, helped avert roughly 5.5 million metric tons of carbon dioxide (CO₂) emissions in the United States. This reduction is comparable to the effect of removing over 1.1 million gasoline vehicles from the roads for a year.
What is Driving Battery Stock Investment in 2025?
As nations implement stricter emissions regulations and gradually eliminate gasoline vehicles, innovations like these are likely to hasten the shift toward electric transportation. Consequently, advancements in battery technology are crucial for enhancing the efficiency, safety, and environmental sustainability of EVs.
Growing Demand for Battery Technology
Data from Bloomberg, shared by Statista, indicates a dramatic increase in the demand for lithium-ion batteries for EVs and energy storage systems over the last decade. In 2010, the demand stood at only 0.5 gigawatt-hours, but by 2020, it skyrocketed to about 526 gigawatt-hours.
- This upward trend is anticipated to persist, with forecasts suggesting a staggering 9,300 gigawatt-hours by 2030.
- This surge symbolizes millions of new EVs, energy storage solutions, and consumer electronics globally.
Despite its potential, analysts caution that the battery industry is marked by high risks and high rewards. In this article, we will highlight the leading pure play battery stocks to watch for investment in 2025. Keep reading.
QuantumScape: Leading the Charge in Solid-State Batteries
QuantumScape (QS), headquartered in California, is at the forefront of advancing solid-state battery technology. The company is developing lithium-metal solid-state batteries featuring a distinctive ceramic separator.
Supported by Volkswagen and Bill Gates, QuantumScape seeks to overcome the limitations of conventional batteries by enhancing energy density, charging speed, and safety. Key innovations include:
- Anodeless design – This design minimizes weight and maximizes efficiency by eliminating the need for a traditional anode.
- Ceramic separator – This component improves safety and stability compared to conventional liquid electrolytes.
QuantumScape’s first commercial offering, the QSE-5, is scheduled for larger sample distribution in 2025, keeping the company on track for market launch.
In addition, QuantumScape and PowerCo, a Volkswagen subsidiary, formed a partnership on July 11, 2024, to enhance the production of solid-state lithium-metal batteries, aiming to produce up to 40 GWh annually with the potential to double this output, sufficient to power around a million EVs each year.
Solid Power: A Strong Contender
Solid Power (SLDP) specializes in all-solid-state battery technology for electric vehicles, utilizing a sulfide solid electrolyte, which enhances safety, thermal stability, and potential cost-effectiveness compared to traditional lithium-ion batteries.
Highlights of Solid Power
- Pioneering sulfide-based solid electrolytes – The company is renowned for producing cutting-edge solid electrolytes at a pilot scale.
- Scalable production – This approach leverages existing lithium-ion manufacturing capabilities.
- High-profile collaborations – Solid Power partners with esteemed companies like BMW, Ford, and SK On to advance battery technology.
In 2024, Solid Power achieved revenue of $20.1 million, up from $17.4 million in 2023, attributed to strategic partnerships and technological advancements. By 2028, the company aims to provide solid-state battery technology for 800,000 electric vehicles annually, marking a significant step toward emission reductions.
