AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
_02_05_2025_05_53_40_418159.jpg)
Lithium and Li-ion battery stocks have been capitalizing on the fast-growing electric vehicle (EV) ecosystem. The demand for environment-friendly stocks are likely to gain more momentum in the light of the federal government pushing for green initiatives in Monday’s budget.
In the latest trading session, lithium stocks were trading in the red, but they are likely to make a comeback due to the macro backing and potential electric vehicle demand in the upcoming years.
QuantumScape Corporation (QS:US or NYSE:US) ended Monday’s session 10.98 per cent down at US$ 31.62 apiece. The Toronto Stock Exchange (TSX)-listed stocks of Lithium Americas Corp (TSX:LAC) were also down 1.66 per cent on April 19.
Both the lithium stocks, however, hold three-digit one-year returns.
Let us delve into these two EV-related stocks’ recent performances.
QuantumScape Corporation (QS:US or NYSE:US)
The solid lithium battery technology company debuted on the New York Stock Exchange (NYSE) after merging with Kensington Capital Acquisition, a special purpose acquisition company (SPAC), in September 2020. While the stock is down by about 29 per cent month-to-date (MTD), it has climbed by 117.47 per cent since its listing debut last year.
QuantumScape stock has traded in line with the auto parts and equipment industry in the past one year. It has a market cap of US$ 7.08 billion at the moment, and its price-to-book (P/B) ratio is 11.054, as per the TMX portal.
QuantumScape announced in March-end that its battery production is in line with Volkswagen’s conditions, and the carmaker expects to invest an additional US$ 100 million in the company.
On March 15, the company announced its plans to appoint Celina Mikolajczak as an independent director. She is presently serving at Panasonic Energy as the Vice-President of Engineering & Battery Technology.
QuantumScape is looking to strengthen its position before its next earnings release on May 12.
©Kalkine Group 2020
Lithium Americas Corp (TSX:LAC)
The Canadian lithium exploration and production company has recorded a fantastic one-year return of over 296 per cent. It has increased by approximately 11 per cent in 2021, surpassing the S&P/TSX diversified Metals & Mining (Sub Industry) Index, which has declined by 6.33 per cent in the same period.
Lithium Americas stock has a P/B ratio of 8.865, and is currently priced at C$ 17.73. It has dropped as much as 51.55 per cent from its January high of C$ 36.6 apiece. If the stock rebounds to its 2021 high, it could deliver double returns.
The company held cash and cash equivalents worth US$ 518 million (ss of Feb 2021). Lithium Americas’ total assets value grew to US$ 326.7 million in 2020, up compared to that of US$ 293.8 million in 2019.
The lithium producer also went public on the NYSE in March 2021 under the ticker of ‘LAC’.
The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.
