Investors interested in battery stocks can look at this sector from multiple angles. Some companies manufacture batteries that power the current generation of EVs, future technology innovators, OEMs, commodity producers, traders, etc. Though, others focus on lithium batteries, solid-state battery innovations, and other key growth areas of this market. These are the kinds of battery stocks I think are likely to grow the most.

It’s also fair to consider more prominent car companies developing manufacturing capacity when discussing battery stocks. However, I’ve chosen not to in this article, simply because their battery businesses are only a component of a larger organization. Thus, I think the returns of such legacy automakers may under-shoot the stocks on this list.

With that said, let’s look at several pure-play battery stocks providing massive potential long-term upside.

Freyr Battery (FREY)

Freyr Battery (NYSE:FREY) is a stock to watch for many reasons. It’s a SPAC-funded EV startup, so investors will remain cautious when they look at this company, on its face. However, I think Freyr Battery will garner a lot of attention moving forward because of its particular marketing.

One of the more critical questions surrounding EV batteries is the reality of their environmental friendliness. Some studies state that EVs and their batteries are better for the environment, only to be countered with contrary studies claiming the opposite. That can plant a seed of doubt in investors minds.

But Freyr Battery, marketing itself as ‘clean battery solutions’ company, is changing everything. The company produces current-generation lithium-ion batteries fueled by hydroelectric and wind energy. That should allay some fears related to CO2 emissions generated by this sector.

Freyr is just now approaching the start of operations at its Norway plant, with factory acceptance tests and site acceptance tests completed. It plans to fast-track a U.S. plant in Georgia, scheduled to commence production in 2025.

QuantumScape (QS)

QuantumScape (NYSE:QS) is a battery stock for those willing to gamble on the evolution of EV battery technology. Like Freyr Battery, QuantumScape is a SPAC-funded battery maker. The company came public through a blank-check firm, with backing from Volkswagen (OTCMKTS:VWAGY). However, QuantumScape is focused on solid-state battery technology, an evolutionary leap forward in EV batteries.

The company released a chart in late-2021 describing the competitive landscape for solid-state batteries. Performance metrics will have changed since then, but the chart indicates how few significant players there are.

All are trying to commercialize solid-state EV batteries that charge faster, aren’t flammable, and significantly extend range. Industry insiders have gone so far as to state that commercializing solid-state batteries will end internal combustion engines. Whether that’s true remains to be seen, but it indicates how much commercial potential exists. QuantumScape is a primary competitor in the space and, as such, has the potential to provide considerable returns in the future.

Lithium Americas (LAC)

I’d argue that Lithium Americas (NYSE:LAC) stock is the most likely to provide significant upside returns of the three battery stocks listed here. The company has 100% ownership over the Thacker Pass mine located in Nevada, the second-largest lithium mine globally. Lithium Americas commenced construction on the Thacker Pass project in early March. However, with production expected to begin in the second half of 2026, this stock will remain a waiting game for investors.

That said, LAC stock will still likely provide returns for investors who buy right now. There are many reasons for such a view. One is that this stock has a unanimous buy rating from the 15 analysts providing coverage. They’ve collectively assigned the shares an average target price, 12-18 months in the future, of $36.47. Shares currently trade below $20 per share, so that’s impressive upside.

While these analysts think the stock could be worth $36 within 18 months, that says nothing of its prospects in 3 years when production commences. Purely speculative estimates currently suggest those prices could eclipse $80. The bottom line is, I think this stock could be a massive winner over the next three to five years.

On the date of publication, Alex Sirois did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.