These quantum glass battery stocks are frontrunners in the emerging solid-state battery sector
Electric vehicle (EV) sales have grown tenfold over the past few years. However, traditional internal combustion engines (ICE) are still preferred despite the momentum. This is largely due to flawed lithium-ion batteries, which lag behind ICEs across all performance metrics. However, a potential successor to the lithium-ion battery can be found with quantum glass battery stocks. These are set to help EVs decisively take over the global automobile market.
It takes hours to recharge a lithium-ion battery, and the cells usually lose a considerable amount of their capacity within a decade. On top of that, they pose a significant safety risk due to their combustible materials. Hence, a solution was warranted for EVs to move to the next adoption stage.
Quantum glass batteries offer higher energy densities and are much safer than their predecessor. Some can charge up to ten times faster as a result and retain their energy after multiple charging cycles.
With the technology still in its nascence, investors must keep an eye on the trend and invest in quantum glass battery stocks. Here are a few of the needle-movers in the sector:
- QuantumScape (NYSE:QS)
- Solid Power (NASDAQ:SLDP)
- Toyota Motor (NYSE:TM)
Quantum Glass Battery Stocks: QuantumScape (QS)
QuantumScape is perhaps the OG in the development of solid-state batteries. The company’s tests revealed its single-layer battery cells could effectively charge up to 80% of the capacity of a cell within 15 minutes.
Moreover, it partnered with German automaker Volkswagen (OTCMKTS:VWAGY), which is hoping to use its cells by 2025. Additionally, both companies are working together to develop a gigafactory for manufacturing quantum glass batteries.
QuantumScape nailed all its objectives last year and is looking to improve the quality, consistency and layer counts of its batteries. Perhaps its biggest breakthrough last year was its 10-layer batteries, which could run a mind-boggling 800 cycles. They were also operational past 240,000 miles. These developments are highly encouraging and will deepen investor interest in QS stock.
Solid Power (SLDP)
Solid Power is an up-and-coming solid-state battery player that went public via a SPAC merger with Decarbonization Plus Acquisition III. The company grabbed headlines due to its backing by automotive giants Ford (NYSE:F) and BMW (OTCMKTS:BMWYY).
Both automakers believe in Solid Power’s ability to break through in the sector and beat its competition to the punch. A lot of this is due to its unique approach to battery development.
Unlike other battery manufacturers, Solid Power doesn’t need to spend billions on building factories. It will be making its batteries on production lines, saving a truckload of costs and time. Hence, it has the potential to commercialize its batteries on staggering timelines. Therefore, SLDP stock could become the strongest pick among quantum glass battery stocks down the road.
Quantum Glass Battery Stocks: Toyota Motor (TM)
Toyota Motors is not a pure-play in solid-state batteries, but its potential to become a major player in the sector cannot be denied. Car manufacturers of its reputation and scale are looking to partner with startups to cater to their battery needs.
However, Toyota plans to develop its own batteries and announced a $13.6 billion investment in them over the next ten years. A major chunk of that money will go toward developing quantum glass batteries.
Naturally, a manufacturer with Toyota’s resources has a leg up over most startups. It boasts an impeccable balance sheet and operating track record. As a result, a potential failure of its glass battery investments won’t impact TM stock too much.
Given the enormous challenge of developing solid-state batteries, it is natural to expect delays. In September last year, Toyota acknowledged there would be delays in the production of glass batteries. Nevertheless, with such a company behind the development, it’s reasonable to expect positive results somewhere down the line.
This article originally appeared at InvestorPlace.
On the date of publication, Muslim Farooque 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 InvestorPlace.com Publishing Guidelines
Muslim Farooque is a keen investor and an optimist at heart. A life-long gamer and tech enthusiast, he has a particular affinity for analyzing technology stocks.