The electric vehicle industry has encountered various headwinds over the past year, including a wave of price reductions and supply chain challenges, rising interest rates and inflationary pressures.
However, the green energy sector is expected to grow significantly in the coming years as the world is phasing out traditional energy commodities in favour of greener, cleaner alternatives.
With this in mind, the electric vehicle (EV) and battery metals sectors will remain a focus for investors going forward. If you’re looking for opportunities on the Toronto Stock Exchange, here are two stocks to consider.
Lion Electric Co. (TSX:LEV) is a Canadian-based manufacturer of city vehicles, headquartered in St. Jerome, and is lesser known in the global electric vehicle space. The company doesn’t produce sedans or SUVs, instead focusing on producing battery buses. While this may not sound like an exciting business, the company has carved out a niche in the growing electric vehicle industry and can leverage this in the future to grow shareholder value as the industry grows.
Results for the third quarter of fiscal 2023 show that demand for its electric buses is growing, with quarterly sales doubling year-over-year and gross profit reaching $5.4 million. This is a significant improvement from the $3.8 million loss in the same period last year. The company’s current share price is C$1.99 per share, near a 52-week low. Considering the fundamentals and performance, now could be a great time to buy while the shares are at the bottom.
Founded in 2007 and headquartered in Vancouver, Patriot Battery Metals Inc. (TSXV:PMET) is a mineral exploration company. The company is focused on acquiring and developing mineral projects focused on batteries, base metals and precious metals, and is listed in July 2022 on the TSX Venture Exchange.
In terms of battery materials, the company has focused on lithium, a highly sought-after battery material used in the electric vehicle industry and virtually all areas of technology involving rechargeable batteries. In addition to owning 100 per cent of the 200-square-kilometre Corvette Lithium property, the company also owns several other mining projects, all of which are also highly prospective for copper and gold reserves.
In fact, without companies like Patriot Battery, electric car companies wouldn’t have the materials they use to make batteries. As of Monday’s (March 4) close, Patriot Battery’s stock was trading at C$8.62 per share, up 247 per cent from its initial IPO price. While there are other, more established lithium stocks in Canada, PMET stock has a lot of potential, with room to double from its nearly 52-week high.
