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Electrifying the world’s energy supply with renewables like wind and solar is a key component to a greener tomorrow. These energy sources need batteries to store energy created by renewable energy sources. But throwing those batteries away would make it less green. That’s why battery recycling stocks are vital to the process.

Wind and sunlight come and go as they please. Sometimes there is not enough to fuel the needs of energy users. Other times, there is too much. Storing energy when renewable energy is plentiful gets stored in batteries. The batteries can then distribute power when energy is scarce.

The problem is that the batteries have a limited life. At the end of their life, the batteries can be thrown away or reused through battery recycling stocks. The greener choice is to recycle the batteries. Not only do battery recycling stocks extend the life of batteries, but they also reduce the need to produce more batteries.

With the growing demand for electric cars, electronics and renewable energy sources used on the electrical grid, battery recycling stocks may have the chance to grow over the next decade or more. For instance, not many batteries are recycled today. Battery recycling stocks could see additional growth as folks begin to recycle their batteries over time.

The downside is that battery recycling releases toxic fumes. But battery recycling stocks have advanced the technology to capture those fumes. Making the battery recycling process even cleaner could make investing in battery recycling stocks attractive to investors. Below are a few battery recycling stocks to get you started on your journey.

Best Battery Recycling Stocks

These battery recycling stocks listed below could lead the way for battery recycling tech. Let’s take a closer look…

No. 4 Li-Cycle Holdings (NYSE: LICY)

LICY is a leading recycler of lithium-ion batteries, according to its most recent investor presentation. The company runs a hub & spoke business model. Each of its seven spokes collects used batteries and scrap. The material is then moved to its hub. At the hub, the material is processed into battery-grade nickel, lithium and cobalt.

The presentation also says that Li-Cycle expects a huge cobalt, nickel and lithium shortage by 2030. It goes on to say the U.S. Infrastructure Bill could help make up for the shortage. For example, the bill included about $6 billion in grants across the battery sector supply chain. In addition, this battery recycling stock expects funding awards in the spring of 2023.

No. 3 American Battery Technology (OTC: AMBL)

AMBL is the first-mover lithium-ion battery recycling company, according to its most recent investor presentation. The company’s technology can produce battery metals at a lower cost and environmental impact than conventionally sourced battery metals. The presentation says global demand for battery metals could grow to over $100 billion.

The company has many feathers in its cap. For instance, in 2019, American Battery won the BASF Circularity Challenge. As the winner, the company got a cash grant and operational support from BASF. BASF is one of the largest chemical companies in North America. After that, American Batter won a $2 million grant from the United States Advanced Battery Consortium in 2021.

Battery Recycling Stocks Could Help High Lithium Costs

As demand for electric cars and lithium-ion batteries increases over the next decade, lithium prices could grow in tandem. If that is the case, electric car makers may look for alternatives if battery prices get too high. With many car makers entering the electric car market, it could get very competitive. The competition between car makers could make recycled battery metals a great solution.

In addition, a growing number of batteries may become available to recycle. As battery recycling stocks keep advancing their technology, it could make the world greener. For instance, if battery recycling grows, mining the earth for battery metals may reduce.

Many battery recycling companies are private. For example, Redwood Materials is a private battery recycling company started by JB Straubel, a co-founder of Tesla. In a recent press release, the company said it is working with Toyota to create a closed-loop supply chain for electric vehicles that extends well beyond recycling to encompass the collection, refurbishment and remanufacturing of large-scale sources of battery materials.

Private companies like Redwood Materials could IPO at some point. In short, keep an eye out for new battery recycling stocks. The market for them is only growing.

The post 4 Best Battery Recycling Stocks to Invest In appeared first on Investment U.

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By: BJ Cook
Title: 4 Best Battery Recycling Stocks to Invest In
Sourced From: investmentu.com/battery-recycling-stocks/
Published Date: Tue, 05 Jul 2022 13:50:47 +0000

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