#7 - Microvast (NASDAQ:MVST)
Microvast (NASDAQ:MVST) is another picks-and-shovel play on electric vehicle batteries. The company doesn’t make the whole battery, but they provide customized battery solutions including cells, modules and packs. They also manufacture the separator which is seen as a key component in improving the performance of lithium-ion batteries.
At the time of this writing, the company’s main exporting facility was in Shanghai. That’s putting pressure on the company’s supply chain. But the company does have contracts worth $2.5 billion between now and 2030.
But investors with a long-term outlook should be aware that Microvast is one of the company’s receiving funding from the Biden administration’s $2.8 billion award aimed at improving the U.S. supply chain. Microvast plans to use its share of the funding to build a separator facility in the United States.
About Microvast
Microvast Holdings, Inc provides battery technologies for electric vehicles and energy storage solutions. The company offers a range of cell chemistries, such as lithium titanate oxide, lithium iron phosphate, and nickel manganese cobalt version 1 and 2. It also designs, develops, and manufactures battery components, such as cathode, anode, electrolyte, and separator.
Read More - Current Price
- $0.19
- Consensus Rating
- Moderate Buy
- Ratings Breakdown
- 3 Buy Ratings, 1 Hold Ratings, 0 Sell Ratings.
- Consensus Price Target
- $4.50 (2,263.4% Upside)
With EV sales as a percentage of the overall market still being in the single digits, investing in battery stocks does contain some risk. But a simple reality that most investors must face is that growth typically comes at a price. To achieve the meteoric gains that many investors desire requires the fortitude to invest in some stocks that may go against the conventional wisdom.
This is where due diligence plays a roll. Analysts forecast that the EV battery market will grow to $155 billion by 2028. That would be 7 times larger than it was in 2020.
In other words, if you invest in companies that are among the best-in-class right now, there is likely to be a solid return. But getting to that payoff will require patience and conviction. In this presentation, we've given you seven battery stocks you can feel good about owning today with the likelihood of a big payoff by 2030.
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