Interest in battery stocks is starting to pick up again, after a rough year so far. The Global X Lithium & Battery Tech ETF is down about 12% so far, as growth stocks are battered in a higher-yielding investment climate for longer. However, the fortunes of ETFs can change; it has grown 2.7% in the past three months. It comes as prices of raw materials used in electric vehicle batteries – lithium, nickel and cobalt – have skyrocketed as demand has skyrocketed. And analysts expect them to grow even more, as EV production and sales pick up, Rystad Energy analysts said in a note last week. Against that backdrop, CNBC Pro showcased the Global X Lithium & Battery Tech ETF on FactSet for stocks that analysts expect to outperform, using the following criteria: Buy ratings from over 50% of analysts cover them. % The screen shows 12 names that meet those criteria. According to FactSet, the stock topping the list with the highest upside potential is South Korean battery materials maker L&F, with an average gain of 116%. One US stock that has manufactured this monitor is Microvast Holdings. It has struggled this year with a drop of more than 60%, but analysts expect it to rise from here, up 33%, according to FactSet. Electric vehicle giant Tesla also appears on the list, with analysts seeing it grow by more than 33%. The stock hasn’t performed well this year either – down more than 20% year-over-year – even though it has gained more than 6% in the past month. Meanwhile, 100% of all analysts including the stocks gave these names buy ratings: Microvast, Piedmont Lithium and Standard Lithium. Up over 70% One exception on display in terms of performance so far is Australian lithium miner Allkem, which has grown by more than 40% this year. And analysts say it has the potential to go even further, with an average gain of 74%, according to FactSet. In a June report, the company said it had posted record sales and annual output. “Strong cash flow and strong balance sheet are expected to support the implementation of an aggressive growth strategy to triple production by 2026 and maintain 10% market share,” the company said. part”. “The increase in production will be underpinned by the forecast growth in demand needed for the transition to electric vehicles.” – CNBC’s Zavier Ong contributed to this report.
