Because EVs are expected to dominate the automotive market eventually, the demand for EV batteries is also expected to rise significantly. Consequently, EV battery stocks QuantumScape (QS) and Panasonic (OTC:PCRFY) could see increasing demand for their products. But which of these stocks is a better buy now? Read more to find out.California-based development-stage company QuantumScape Corporation (QS) develops and commercializes solid-state lithium-metal batteries for electric vehicles (EVs) and other applications. Panasonic Corporation (PCRFY) is a Japan-based electronics company that operates through four segments: Appliance; Eco Solutions; Connected Solutions; and Automotive and Industrial Systems. Its offerings include automotive-use batteries, refrigerators, and industrial motors and sensors.
The production of EVs continues to be negatively impacted by a global semiconductor shortage, which is in turn negatively affecting the demand for EV batteries. However, the EV battery market is expected to grow exponentially as increasing climate change concerns eventually lead to EVs domination of the automotive market. Indeed, according to a Fortune Business Insights report, the global EV battery market is expected to reach $82.20 billion by 2027, growing at a 6.65% CAGR. Furthermore, President Biden’s proposed infrastructure plan includes $7.5 billion for EV charging stations. So, EV battery stocks QS and PCRFY could benefit as a result.
PCRFY’s stock has gained 6% in price year-to-date, while QS lost 71.6%. Also, PCRFY’s 5.7% gains over the past three months compare to QS’ 22.6% loss. Moreover, in terms of the past month's performance, PCRFY is the clear winner with 3.4% gains versus QS’ 4.3% loss.