The automotive industry is going electric. Every major automaker is actively developing or already selling electric vehicles (EVs). Tesla (TSLA 1.55%) is the industry pioneer. Now, Ford (F 1.12%), General Motors (GM 0.95%), Volkswagen (VWAGY -0.89%), Daimler (DAI -1.41%), and other carmakers are pushing ahead with plans to capitalize on the growing consumer preference for electric cars.
GM expects to produce 1 million EVs annually in North America by 2025, while Ford expects to build 600,000 in 2024, reaching 2 million just a few years later. Volkswagen’s even more ambitious. It is targeting more than half of all its sales to be EVs by 2030. Stellantis, the company behind Jeep, Chrysler, and Dodge, set a goal for battery EVs to account for 100% of sales in Europe and 50% in the U.S. by 2030.
Investing directly in EV stocks is one way to profit from this mass transition. Another way is to invest in the companies supplying the batteries, the most important and costly components of EVs. If electric vehicle production significantly increases over the next decade, the demand for EV batteries will skyrocket similarly.
Major battery producers are investing heavily to meet rising EV battery demand. Meanwhile, battery technology start-ups (some of which are going public via special purpose acquisition company [SPAC] mergers) are developing new energy storage systems that could revolutionize the industry. It’s an exciting time to consider investing in EV battery stocks.
