Electric Vehicle Stocks Are Hot & These 3 Could Be On The Watch List This Week
Electric vehicle penny stocks have been red hot this year. What began as speculation on a Biden presidency has been confirmed. The move toward a “renewable energy future” has sparked excitement in everything from hydrogen and nuclear energy stocks to lithium and even battery recycling. The goal is to become a net-zero carbon country. In fact, the Biden Administration has set out to lead the charge on the global level and “set an example” to address climate change. His plan is for the U.S. to achieve a 100% clean energy economy and net-zero emissions no later than 2050.
Whether or not that ultimately happens in to be seen. But one thing we can identify is the fact that companies are getting behind this initiative & so is the market. If you look at many of the clean energy-related ETFs over the last few months, you’ll see this trend more clearly. Whether it’s the iShares Global Clean Energy ETF (ICLN), Invesco’s Solar ETF (TAN), or First Trust’s Clean Edge Green Energy Index Fund (QCLN), the trends are the same. All have gone on a steep climb during the last few quarters.
Tuesday, the niche got another jolt of bullish momentum thanks to news involving two former penny stocks we’ve discussed, Comstock Mining Inc. (NYSE: LODE) and Aqua Metals Inc. (NASDAQ: AQMS). The news involved a cleantech startup, LiNiCo, which focuses on lithium-ion battery recycling. Aqua Metals invested in LiNCo and joined other companies, including Comstock, in forming an eco-network for advancing technologies aimed at recycling lithium-ion batteries at volume.
With this, attention has once again focused on the electric vehicle battery niche of the EV supply chain. In light of this, we’ve seen several related names take off on Wednesday morning. Will they continue surging or should you avoid the hype entirely?
EV Battery Penny Stocks To Buy [or avoid]
U.S. Antimony Corporation
This has been one of the companies on our list of electric vehicle penny stocks for months. The company mines, finishes, and sells different metals. These include antimony, silver, gold, and zeolite. Obviously, precious metals have become a bigger focus for traders during times of economic uncertainty. But for U.S. Antimony, attention is stemming from other things, in my opinion.
In particular, the company just raised $14.3 million to improve its infrastructure. This includes projects at its Mexico and Montana antimony installations. The company also intends to improve infrastructure at its Idaho zeolite operation and fund a geochemical, geological, and geophysical program at its Los Juarez property.
One of the interesting things about zeolite is that it’s been sought after for its potential use in EV batteries. The Green Car Reports discussed this topic last year as General Motors (GM) talked about the “ultimate battery” with potential for 1 million miles. Tim Grewe, GM’s global electrification and battery systems director, explained that Zero-cobalt and zero-nickel cells are being tested, as well as with electrolyte additives and zeolite additives. “We do have million-mile battery life, especially in shared mobility usage, in our sights and are getting great results when it comes to that.”
American Battery Metals Corp.
If you’re looking at similar companies focusing on lithium-ion battery recycling, American Battery Metals Corp. has been in the spotlight for months because of that exact topic. In fact, the company was recently selected for a $4.5 million grant by the U.S. Department of Energy’s Advanced Manufacturing Office.
“This funding opportunity is part of the Department of Energy’s efforts to reduce American dependence on imported critical materials by both diversifying the sources of materials needed for energy technologies and establishing domestic capabilities to refine materials used in manufacturing.“
The company is changing its name to American Battery Technology Company to reflect its business model better. American Battery’s 3 divisions encompass most of the logistical needs for battery metals supply. The company handles lithium-ion battery recycling. It holds specific extraction technology and has access to primary resources.
American Battery plans on opening a pilot lithium-ion battery recycling plant in Nevada. The land has been purchased, water rights were secured, and a construction firm was brought on. According to the company, it expects to announce updated timelines in “early 2021.”
China Natural Resources Inc.
Finally, China Natural Resources comes onto this list after spiking early on Wednesday morning. The company doesn’t recycle batteries, and it isn’t making investments into companies that do. However, when we talk about battery metals, China Natural Resources could come to light. The company specializes in the exploration of lead, silver, zinc, and other nonferrous metals. It’s this last part that could have CHNR stock on the list of batter stocks to watch.
By definition, non-ferrous metals are types of metals and alloys that don’t contain iron. They include nickel, lead, brass, gold, platinum, silver, and even cobalt, and lithium. With demand for EVs growing faster than supply can sustain, there’s a good chance this group of metals will be on the list of necessities moving forward.
While the company hasn’t put out much news, we can see it is actively raising money. A filing from earlier this year showed the company managed to raise $7.3 million in a registered offering. The use of proceeds was vague as the company earmarked them for “general corporate purposes.” But if you’ve followed mining companies before, capital requirements are high to continue operations. Given the attention on the EV battery space on Wednesday, however, CHNR stock could be one to watch and see if sympathy momentum has a hand in trading. The big question now is can the momentum continue after sympathy sentiment dies down?