Amid growing climate change concerns, the electric vehicle (EV) industry is expected to witness tremendous growth over the long term. And since EV batteries are a crucial component of EVs, we think it could be wise to add EV battery stocks QuantumScape (QS) and FREYR Battery (FREY) to one’s watchlist. Wall Street analysts expect these names to gain more than 40% in price in the coming months. Read on.Although the electric vehicle (EV) revolution began a few years ago, increasing climate change concerns and supportive government policies are expected to help drive the industry’s growth. At the recent COP26 conference, governments, automobile manufacturers, and other interested parties signed an agreement to transition to sales of 100% zero-emission new cars and vans by 2035 in the major markets and by 2040 globally.
EV batteries represent a considerable chunk of an EV’s cost, and EV battery manufacturers are constantly looking for sustainable solutions to reduce the cost of these batteries. Companies are also looking to increase the range and longevity of batteries to compete with the range and reliability offered by internal combustion engine (ICE (NYSE:ICE)) vehicles. According to a Fortune Business Insights report, the global EV battery market is expected to grow at a 28.1% CAGR to $154.90 billion by 2028.
So, we think EV battery manufacturers QuantumScape Corporation (QS) and FREYR Battery (FREY) could be good additions to one’s watch list. Wall Street analysts expect them to gain more than 40% in the near term.