Time and again, you might have heard the line – ‘The Future is Electric”. Regardless of how cliched this may sound, it stands true. According to RBC Capital Markets, global Electric Vehicle (EV) sales are expected to climb 12 times by 2025, from 3 million units sold in 2016 to 35 million units sold in 2025. This 12-fold increase was fueled by concerns about climate change and government crackdowns on internal combustion engine (ICE) automobiles as fossil fuels become increasingly expensive.
No matter the reason, the fact of the matter is that the EV revolution is here, and everyone has the opportunity to gain from it.
That opportunity is in energy storage with batteries, whether solid-state, lithium-ion, or even fuel cells. Let’s take a look at the best battery company stocks in Canada.
What's in the Article:
- Canadian EV Solid-State & Li-Ion Battery Stocks to Invest In
- Lithium Americas Corp. (TSX:LAC)
- Nano One Materials Corp. (NANO.TO)
- Electrovaya Inc. (EFL.TO)
- Exro Technologies Inc. (EXRO.TO)
- Ballard Power Systems Inc. (BLDP.TO)
- Magna International Inc. (MG.TO)
- NextSource Materials Inc. (TSX:NEXT)
- Canada Silver Cobalt Works Inc. (TSXV:CCW)
- Microvast Holdings Inc. (NASDAQ:MVST)
- Solid Power Inc. (NASDAQ:SLDP)
- Why Invest in Battery Systems Companies in Canada?
- The Battery Production Industry in Canada
- Solid-State Batteries vs Lithium Batteries
- Canada vs the Global Battery Landscape.
- The Bottom Line
Canadian EV Solid-State & Li-Ion Battery Stocks to Invest In
These EV solid-state and lithium battery stocks have the most promising development potential for Canadian investors looking to make big bucks without compromising safety. There are many ways to get exposure to battery systems innovation and production. If you want to invest in portable energy storage in Canada, here is the list for you!
Lithium Americas Corp. (TSX:LAC)
Lithium America Corps is a well-known name in the lithium mining industry and among the best lithium stocks. This Canada-based firm was founded in 2007 to develop two lithium mines, one in Argentina and the other in the United States. Their rapid development of the Cauchari-Olaroz lithium brine project in Argentina, the world’s third-largest lithium brine deposit, has positioned them to become a significant participant in the lithium industry. Lithium America’s Thacker Pass Lithium Project is well on its way to becoming the country’s largest lithium producer. This American Lithium project is estimated to have a production capacity of around 60,000 tons annually.
Just recently, US officials have removed a significant obstacle to Lithium Americas Corp’s Thacker Pass mine project in Nevada. The US Interior Department made this decision, finding that the project would have minimal impact on the environment and cultural resources. This development is a positive step for Lithium Americas Corp as it paves the way for advancing the Thacker Pass mine project.
The removal of this obstacle is crucial for Lithium Americas Corp as it enables the company to move forward with its plans to develop the Thacker Pass mine, which is a significant lithium deposit.
Lithium Americas is one of the most recognizable names in lithium production and is a credible company having a trusted name in the electric vehicles stocks and lithium-ion batteries sector.
Nano One Materials Corp. (NANO.TO)
Nano One Materials Corp. (NANO.TO) is a Canadian company specializing in developing and producing advanced battery materials. As a critical player in the solid-state battery sector, Nano One Materials Corp. has gained recognition for its innovative technologies and promising growth prospects. The company focuses on enhancing lithium-ion batteries’ performance, durability, and cost-effectiveness, including solid-state batteries.
In terms of financial performance, Nano One Materials Corp. has demonstrated positive momentum in recent years. The company has experienced steady revenue growth, driven by increased demand for its battery materials and partnerships with major industry players. In addition, Nano One Materials Corp. has also secured several research grants and funding to support its development efforts. These financial achievements reflect the market’s recognition of the company’s technological advancements and potential in the solid-state battery industry.
Looking ahead, Nano One Materials Corp. has a positive growth outlook. The company continues to invest in research and development to enhance its battery materials further and expand its product portfolio. In addition, Nano One Materials Corp. has established strategic partnerships and collaborations with leading battery manufacturers and automakers, positioning itself at the forefront of innovation in the solid-state battery sector.
Electrovaya Inc. (EFL.TO)
Electrovaya Inc. (EFL.TO) is a Canadian company specializing in designing, developing, and manufacturing advanced lithium-ion batteries for various applications, including electric vehicles (EVs) and energy storage systems. As a key player in the battery sector, Electrovaya has shown promising financial performance and has been actively pursuing new growth opportunities.
Electrovaya has achieved significant milestones in recent years in terms of financial performance. The company has experienced steady revenue growth, driven by the increasing demand for lithium-ion batteries in the EV market. Electrovaya has secured partnerships and contracts with major OEMs and suppliers, contributing to its revenue growth and market presence. Additionally, the company has focused on improving its operational efficiency and cost-effectiveness, positively impacting its financial performance.
In terms of growth prospects, Electrovaya is well-positioned to capitalize on the expanding EV market and the growing demand for advanced battery technologies. The company continues to invest in research and development to enhance its batteries’ performance and energy density, aiming to meet the evolving needs of the automotive industry. In addition, Electrovaya has expanded its global footprint, establishing a presence in key markets such as North America, Europe, and Asia.
Exro Technologies Inc. (EXRO.TO)
Exro Technologies Inc. (EXRO.TO) is a Canadian technology company specializing in developing advanced power electronics and control systems for electric motors and batteries. With a focus on enhancing energy efficiency and performance, Exro Technologies has shown promising financial performance and actively pursued growth opportunities in the sector.
Regarding financial performance, Exro Technologies has experienced significant growth in recent years. The company has reported strong revenue growth, driven by the increasing adoption of its innovative technologies in various industries, including electric vehicles. In addition, Exro Technologies has successfully secured partnerships and collaborations with major players in the electric mobility sector, further bolstering its revenue streams and market position. Moreover, the company has been focused on managing its expenses and optimizing its operations, leading to improved financial results.
Exro Technologies has promising growth prospects in the rapidly expanding electric vehicle and energy storage markets. The company’s cutting-edge power electronics and control systems have the potential to significantly enhance the performance and efficiency of electric motors and batteries, addressing critical challenges in the industry. Exro Technologies is actively engaged in research and development, continuously advancing its technology portfolio and exploring new applications for its solutions.
Ballard Power Systems Inc. (BLDP.TO)
While Ballard Power Systems Inc. (BLDP.TO) primarily operates in the fuel cell industry, its technology and products also have applications in the portable energy storage sector. Ballard’s fuel cell systems can be utilized for mobile and portable power solutions, providing clean and efficient energy for a range of applications, including backup power, off-grid power, and mobile charging. Fuel cells are almost the anti-battery, but the future of energy generation and storage. It’s a great way to diversify into future innovations in this sector.
Regarding financial performance, Ballard Power Systems has shown positive growth in recent years. The company has consistently increased its revenue, driven by growing demand for clean energy solutions and the adoption of fuel cell technology in various sectors. Ballard has also made significant progress in reducing its costs and improving its margins, resulting in improved financial performance and profitability.
As for growth prospects, Ballard Power Systems is well-positioned to capitalize on the increasing demand for portable energy storage solutions. The company’s fuel cell technology offers several advantages, including high energy density, long duration, and rapid refuelling capabilities, making it suitable for portable applications. Ballard has been actively expanding its product portfolio to address the specific needs of the mobile energy storage market, such as lightweight and compact fuel cell systems.
Magna International Inc. (MG.TO)
Magna International Inc. (MG.TO) is a global mobility technology company that operates in the automotive sector. The company specializes in developing and manufacturing automotive systems, including exteriors, interiors, seating, powertrain, electronics, and electric vehicle systems. Magna International has a solid financial performance and has been actively pursuing growth opportunities in the automotive industry.
In terms of financial performance, Magna International has consistently demonstrated strong revenue growth and profitability. The company’s diverse product portfolio and global presence have contributed to its success, with revenues generated from both OEM (Original Equipment Manufacturer) and aftermarket sales. In addition, Magna International’s focus on innovation and technology advancements has allowed it to secure contracts with major automotive manufacturers worldwide, further driving its financial performance.
Recent new and growth prospects for Magna International lie in the electric vehicle (EV) sector. As the demand for electric cars continues to rise, Magna International has positioned itself as a critical player in developing and producing EV components and systems.
NextSource Materials Inc. (TSX:NEXT)
NextSource Materials Inc., situated in Toronto, Canada, is a strategic materials development firm to become a fully integrated global supplier of crucial battery and technology materials required to fuel the sustainable energy revolution. The Molo graphite project in Madagascar is one of the world’s largest and highest-quality graphite resources and the only one that contains SuperFlake® graphite. The Molo Project is currently in commissioning for operation.
The results of a Preliminary Economic Assessment for an improved Phase 2 expansion of NextSource Materials Inc.’s 100%-owned Molo Graphite Mine Project in southern Madagascar were announced on February 28, 2022. Over a 26-year mine life, the PEA assessed an upgraded Phase 2 expansion that included a stand-alone processing unit with 150,000 tonnes per annum of flake graphite concentrate production capacity. According to the PEA, the capital costs to build 150,000 tpa of processing capacity would be US$155.8 million, with a pre-tax NPV of US$929.6 million and a pre-tax IRR of 41.1 percent using an 8% discount rate.
Recently, NextSource has initiated commissioning its Molo Graphite Mine in Madagascar. The Molo Graphite Mine is a significant project for NextSource Materials, as it is one of the world’s largest and highest-quality graphite resources. The initiation of the commissioning process marks a milestone in the development of the mine, bringing it closer to full-scale production.
The commissioning process involves testing and verifying the functionality and performance of the mine’s infrastructure, equipment, and processes. As a result, NextSource Materials can assess and optimize the mine’s operations before transitioning to commercial production. This step signifies progress toward achieving the company’s goal of becoming a fully integrated global supplier of battery materials.
Check out graphene stocks in Canada.
Canada Silver Cobalt Works Inc. (TSXV:CCW)
Canada Silver Cobalt Works is a Canadian mining firm specializing in mineral property acquisition, assessment, exploration, and development. Castle Cobalt Silver Property, Beaver Cobalt Silver Property, and Violet Cobalt Silver Property are among the company’s projects that target cobalt, silver, and gold mineralization. In the rich and world-class silver-cobalt mining zone of Northern Ontario, Canada, Silver Cobalt Works Inc. has identified an extensive high-grade silver vein system at Castle East, located 1.5 km from its 100%-owned, past-producing Castle Mine in Gowganda. The company completed a 60,000m drilling operation to increase the deposit’s size and is now updating the resource estimate.
On April 14, 2022, Canada Silver Cobalt Works Inc. stated that it had raised gross proceeds of approximately $6.04 million through its previously announced upscaled brokered private placement, which included the partial exercise of an agent’s option to enhance the amount of the offering. As a result, the company issued 7,468,000 units at $0.25 per unit, 8,682,500 flow-through units at $0.27 per flow-through unit, and 6,310,000 Quebec flow-through units at $0.29 per Quebec flow-through unit after the offering.
The company has a lot to offer in the electric vehicle batteries sector, trading at a share price of $0.28 as of April 15, 2022 (10:20 AM). Despite being a penny stock, analysts claim it is exceptionally outperforming.
Microvast Holdings Inc. (NASDAQ:MVST)
Founded in 2006 and headquartered near Houston, Texas, Microvast Holdings Inc is a technology company that designs, builds, and produces lithium-ion battery solutions and is a pioneer in manufacturing fast-charging battery systems. The company is known for its cutting-edge battery technology and vertical integration capabilities, including everything from fundamental battery chemistry to modules and packs. The company serves a diverse spectrum of vehicles, from passenger and commercial electric vehicles to heavy-duty trucks and trains. In addition, battery backups for data centers and energy storage systems are also available through the company.
On March 24, 2022, Microvast Holdings announced the addition of two new lithium-ion battery cells to its product portfolio (the new 48Ah and 53.5Ah NMC Li-ion battery cells) and improved Gen 4 battery packs to its product portfolio. The MpCO-48Ah has an energy density of 205 Wh/kg, while the HpCO-53.5Ah has an energy density of 235 Wh/kg taking 16 minutes and 48 minutes for 80% DOD @RT, respectively.
This battery manufacturer is a household name in the automotive industry, trading at a share price of $5.69 as of April 15, 2022 (9:11 AM). With a market capitalization of 1,710,064,862 already and the rise of next-generation batteries, this company has immense growth potential.
Solid Power Inc. (NASDAQ:SLDP)
Solid Power is a worldwide leader in all-solid-state rechargeable batteries for EVs and mobile power applications. Solid Power uses a unique sulphide-based solid electrolyte to replace the flammable liquid electrolyte in standard lithium-ion batteries. As a result, Solid Power’s all-solid-state battery cells are expected to be safer and more stable over a wider temperature range, provide higher energy density than currently available battery packs, enable less pricey, more energy-dense battery pack models, and be compatible with traditional lithium-ion manufacturing processes.
Solid Power’s business combination was completed on December 8, 2021, generating total cash flows of $495 million to fund the company’s product development and business expansion goals. It met all of the goals set for 2021, including starting production of 20 Ah high-content silicon anode cells on the company’s pilot line. In addition, as part of the company’s automotive certification process, it partnered with top lithium-ion cell manufacturer SK Innovation Co., Ltd. to validate that Solid Power’s all-solid-state cell designs and production processes are scalable and build EV-scale cells.
The company is a battery industry leader in battery production, trading at $8.89 as of April 15, 2022 (9:24 AM). Holding a market capitalization of 1,544,823,764, the company is a safe and profitable investment.
Why Invest in Battery Systems Companies in Canada?
Rechargeable, lightweight, compact, and highly efficient batteries that do not sacrifice energy density are required for power storage in electric vehicles. Despite having all of the above capabilities, lithium-ion batteries are not the perfect fit. However, lithium can store a lot of energy in a small space, it can be used to make rechargeable batteries, and it’s easy to mine.
However, lithium-ion batteries are expensive, volatile, and slow to charge, which remains a stumbling barrier in the path of EVs. Manufacturers of solid-state batteries promise less expensive, faster-charging batteries that won’t catch fire. Therefore, turning the market and main focus towards themselves.
Many investors are interested in this sector, and a market boom seems inevitable, leaving a golden opportunity for smaller investors to make the right decision and earn big.
Battery production in Canada is a potentially good investment for several reasons:
The demand for batteries, particularly lithium-ion batteries used in electric vehicles, energy storage systems, and portable electronics, is rapidly increasing. As the world transitions towards cleaner and more sustainable energy solutions, the demand for batteries is expected to surge. Investing in battery production in Canada allows investors to tap into this growing market and benefit from the increasing demand.
Abundant Natural Resources
Canada is rich in natural resources required for battery production, such as lithium, cobalt, nickel, and graphite. These resources are essential components of lithium-ion batteries. Access to a stable and domestic supply chain of these critical materials reduces dependency on foreign sources and ensures a reliable and cost-effective production process.
Skilled Workforce and Research Institutions
Canada is home to highly skilled professionals and renowned research institutions specializing in battery technology. Investing in battery production in Canada allows access to a talented workforce, fostering innovation and technological advancements. In addition, collaborations with universities and research centers provide opportunities for cutting-edge research and development, giving companies a competitive edge.
Proximity to North American Markets
Canada’s strategic geographic location provides proximity to major North American markets, including the United States. This proximity offers logistical advantages, such as reduced shipping costs and faster delivery times. In addition, access to a large customer base enhances market competitiveness and potential profitability.
Long-Term Growth Potential
The battery industry is poised for long-term growth as it becomes increasingly crucial in various sectors, including transportation, renewable energy, and grid stability. Investing in battery production in Canada allows investors to capitalize on this long-term growth potential and establish a strong position in the evolving energy storage market.
Considering these factors, battery production in Canada presents a promising investment opportunity with the potential for significant returns, driven by the growing demand for batteries, government support, abundant resources, a skilled workforce, and a focus on sustainability.
The Battery Production Industry in Canada
The growth of battery technology has given Canada a considerable opportunity to rise to the energy storage stage. As the country is focused on renewable energy through solar, wind and hydro, along with the growth in battery-powered vehicles, the companies that encompass this industry have lots of room to innovate and share competitive advantages from being in the country.
Interested to learn more about the battery industry in Canada? Take a look at these Sub-sectors of lithium-ion and EV battery research and production in Canada:
Battery Materials: Research and development focused on improving the performance, efficiency, and sustainability of battery materials such as lithium, cobalt, nickel, and graphite.
Battery Manufacturing: Production of lithium-ion batteries and assembly of battery packs for electric vehicles, energy storage systems, and portable electronic devices.
Battery Management Systems: Development of advanced software and hardware solutions for monitoring, controlling, and optimizing the performance and safety of lithium-ion and EV batteries.
Battery Recycling and Circular Economy: Initiatives aimed at developing efficient recycling technologies and processes to recover valuable materials from used batteries, reducing waste and supporting a circular economy.
Solid-State Batteries: Research and development of solid-state battery technologies that offer improved energy density, safety, and longevity compared to traditional lithium-ion batteries.
Battery Testing and Certification: Facilities and organizations conduct rigorous testing, validation, and certification of lithium-ion and EV batteries to ensure safety and performance standards compliance.
Canada’s lithium-ion and EV battery research and production industry is positioned for substantial growth, driven by favourable market conditions, government support, technological advancements, and a strong commitment to sustainability. In addition, the industry encompasses various sub-sectors that contribute to the development of advanced battery technologies, ensuring Canada’s competitiveness in the global market.
Solid-State Batteries vs Lithium Batteries
Solid-state batteries are a promising next-generation battery technology that utilizes solid electrodes and a solid electrolyte instead of the liquid or gel electrolyte used in traditional lithium-ion batteries. The advantages of solid-state batteries include better safety due to the absence of flammable electrolytes, higher energy density, faster charging times, and longer cycle life.
However, there are still challenges to overcome regarding manufacturing scalability, cost-effectiveness, and optimizing the performance of solid-state electrolytes to achieve commercial viability. Therefore, ongoing research and development efforts are focused on improving solid-state batteries’ performance, stability, and manufacturing processes.
When comparing lithium-ion and solid-state batteries, both have their advantages and disadvantages. Lithium-ion batteries are well-established and currently dominate the market. They offer good energy density, high power output, and mature manufacturing infrastructure. However, they are limited in terms of safety, slow charging times, and concerns over the availability of raw materials.
Canada vs the Global Battery Landscape.
The solid-state battery industry is highly competitive and includes established players and emerging startups. Major global players in the solid-state battery sector include companies like QuantumScape, Solid Power, and SolidEnergy Systems, which have significantly advanced solid-state battery technology. These companies are actively engaged in partnerships, research collaborations, and investment activities to accelerate the development and commercialization of solid-state batteries. Additionally, numerous research institutions and academic organizations worldwide are conducting research in this field. As a result, the competitive landscape is dynamic, with ongoing efforts to overcome technical challenges and improve solid-state battery technology’s performance, scalability, and cost-effectiveness.
The electric vehicle (EV) industry and lithium-ion battery market are experiencing significant growth and are dominated by several key players. Tesla, a pioneer in the EV market, has established itself as a leading manufacturer of electric vehicles and a significant player in lithium-ion battery technology. Other prominent EV manufacturers include Nissan, BMW, and General Motors, which have invested substantially in EV production and battery technology development.
Major players in the lithium-ion battery market include Panasonic, LG Chem, CATL, and Samsung SDI, leading suppliers of lithium-ion batteries for EVs. These companies have extensive manufacturing capabilities and supply batteries to various EV manufacturers. Additionally, several emerging startups and research institutions are focused on developing advanced lithium-ion battery technologies, including solid-state batteries.
Market trends and forecasts indicate a strong growth trajectory for the EV industry and lithium-ion batteries. The demand for electric vehicles is projected to increase significantly in the coming years, driven by environmental regulations, consumer preferences, and government incentives. As a result, the global lithium-ion battery market is expected to grow at a compound annual growth rate (CAGR) of around 36%. These trends highlight the importance of continuous research and development efforts to improve battery technology, including advancing solid-state batteries as a potential future option.
The battery energy storage industry, including the electric vehicle solid-state battery business, is still in its infancy, and most people are pessimistic about its prospects. On the other hand, analysts believe that a significant move away from li-ion batteries and toward solid-state batteries is unavoidable. In the short run, these businesses may not be very profitable. However, everyone can see the long-term gains this industry has to offer.