Top 4 battery stocks of 2021

Highlights

• Some investors constantly look for new investment opportunities, new-age companies, and sectors that are expected to perform well in the future.
• Battery making industry is one such market segment that is attracting a lot of new investors.

Stock market investors always look for innovative strategies to generate high returns on investment. Some investors constantly look for new investment opportunities, new-age companies that are currently in the growth stage, or a new sector that is expected to perform well in the future. One such sector which is attracting a lot of new investors is the battery-making segment. Although, battery making is a traditional sector that has been operating for many decades. However, the rise of electric vehicles and the clean energy segment has resulted in a lot of new investments in innovative technology of battery making in recent years.

Let us look at four FTSE listed companies that operate in the sector and explore their investment prospects:

AMTE Power Plc (LON:AMTE)

FTSE AIM-listed company designs and manufactures lithium-ion battery. Its manufacturing facility is located in Scotland and provides its products to the automotive industry and oil and gas sector. The company’s stock got listed on the AIM index in March 2021 through an oversubscribed IPO.

For the financial year ended 30 June 2021, the company reported a revenue of £2 million following income from the commercial clients. The company is currently in the growth stage of the business cycle, where it is doing research on next-generation battery setups and cell structure. Any breakthrough future innovation will act as a positive trigger for the company’s growth and profitability.

AMTE Power Plc’s current market cap stands at £51.99 million as of 24 December 2021.

Technology Minerals Plc (LON:TM1)

The company is engaged in the development of technology to recycle car batteries. Its stock got listed on the London Stock Exchange in November 2021 by raising gross proceeds of £1.5 million at 2.25p per share.

One of the subsidiaries of the company Recyclus Group has signed a partnership agreement with Slicker Recycling Limited to recycle and reuse the batteries on an industrial scale using innovative technology.

Technology Minerals Plc’s current market cap stands at £37.58 million as of 24 December 2021.

Ceres Power Holdings Plc (LON: CWR)

The company operates in the design and development of fuel cell technology. Its products are used in transport, data centre, residential apartment. For the six months to 30 June 2021, the company reported a revenue of £17.4 million, a rise of 96% mainly due to strong bounce back in commercial partnership. The gross profit of the company was at £12.2 million, while its total order book stands at £42 million.

The company’s asset-light, clean energy business model is estimated to deliver high growth and profitability in upcoming quarters. Moreover, the company is on track to achieve revenue of £31.5 million for the 12 months to 30 December 2021.

Ceres Power Holdings Plc’s current market cap stands at £1,878.69 million as of 24 December 2021.

AFC Energy Plc (LON: AFC)

FTSE AIM-listed company operates in the development of alkaline fuel cell systems to deliver clean energy through the use of battery and fuel storage products. It operates in the electric vehicle segment, which is underpenetrated and offers a high growth opportunity.

The company is set to supply many fuel cell systems to its clients in upcoming quarters, which is expected to benefit in terms of revenue and profitability. For the six months to 30 April 2021, the company reported a revenue of £0.15 million.

AFC Energy Plc’s current market cap stands at £355.86 million as of 24 December 2021.