NEXT-GEN POWER

 

Many companies are trying to "crack the code" of the next-generation battery. Some have made significant progress. And one technology in particular appears to be the early leader... Well, that leader just took a huge step forward.

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Even though Solid Power (SLPD) is a smaller player in the battery space, it's making big waves. The company is beginning its initial production of solid-state batteries, and carmakers like BMW (BMWYY) and Ford (F) should be able to test the technology by the end of the year.

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This is big news. These batteries could significantly increase electric vehicles' ("EVs") range and reduce their charging time – two of the major hurdles for mainstream adoption today. The future of transportation is one of my top investment themes for the Roaring 2020s. And next-gen battery technology and EVs are two niches fueling the overall megatrend.

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There are massive tailwinds at work here that will continue to propel this space in the coming years. The battery market is expected to grow from $27 billion in 2021 to $155 billion by 2028 – a nearly 6X increase in just seven years. And by the end of 2040, Morgan Stanley believes the battery market will be worth $525 billion. In other words, this trend won't be short-lived. The battery revolution is here to stay, and it's just going to get bigger and bigger.

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Lithium-ion batteries – the most common battery tech in use today – can be found in most of our electronics. They power EVs and are essential for renewable energy storage systems, too. But lithium-ion technology is not our future. Instead, newer technologies like solid-state batteries are starting to gain market share. These batteries don't have a liquid or gel electrolyte like their lithium-ion counterparts. Instead, they use a solid electrolyte. This difference is crucial because they can be lighter, smaller, and store more energy than a standard battery.

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Solid Power's recent announcement puts it a step ahead of its competition in this space. But it's far from the only player. QuantumScape (QS) is another solid-state battery firm that has already attracted a lot of cash from investors – including automotive giant Volkswagen (VWAGY). And I recently published a report for my McCall Report subscribers that recommends four of my favorite companies to play this hypergrowth megatrend. All four stocks are still buyable at current prices, but I don't expect them to stay that way for long.

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