As electric vehicles continue to revolutionize the transportation landscape, supporting more sustainable alternatives to traditional energy sources, investors are eyeing the top battery stocks to buy.

This transition is driven not only by the demand for EVs but also due to rising demand for renewable energy applications.

By identifying the best battery stocks to buy, investors can effectively capitalize on this momentum and help power a more sustainable future.

The global EV battery market will surge, with Fortune Business Insights forecasting a compound annual growth rate (CAGR) of 10.5%. The sector’s market value might skyrocket from $49.22 billion last year to a staggering $98.97 billion by 2029.

Therefore, it’s the right time to pounce on the sector and wager on trailblazing companies at the forefront of EV battery development. Among the plethora of options, here are the seven standout battery technology stocks that fit the bill.

Sociedad Quimica (SQM)

As one of the world’s largest lithium producers, Sociedad Quimica (NYSE:SQM) has effectively forged a path toward becoming a key player in the production of batteries.

The Chilean specialty chemicals giant benefits from the country’s abundant lithium reserves and business-friendly environment, creating the perfect setting for SQM’s burgeoning operations.

SQM’s financial performance has been nothing short of spectacular, with revenues rocketing from 386% over the past decade to an astounding $10.7 billion last year.

This meteoric rise is because of robust growth in lithium sales, driven by the metal’s soaring demand across various sectors.

Its incredible profitability profile further bolsters its allure. Last year, SQM witnessed posted a 585% increase in earnings per share with over a 700% bump in free cash flows.

Layer that up with a 10-year dividend growth of roughly 11% and its discounted stock price, and you have a sure-fire winner in the battery realm.

QuantumScape (QS)

QuantumScape (NYSE:QS) is one of the most promising long-term bets in the battery sector. The firm is revolutionizing the EV battery landscape with its pioneering solid-state technology.

Its remarkable innovations began in 2020 with a single-layer cell, swiftly progressing to 10, 16, and eventually a 24-layer cell prototype.

Its stock has been gaining traction recently after reporting impressive results for its battery cell tests. In boosting investor confidence, QuantumScape revealed it has ample cash reserves to last until the second half of 2025.

It provided details on its first commercial product, a 24-layer solid-state cell with a capacity of 5 Amp-hours.

The company aims to solidify its position as a first-mover in the forever battery space.

Its next steps include completing equipment designs for upgraded, higher-volume production. As it blazes forward, investors have a unique opportunity to join the company’s electrifying journey early in the piece.

Freyr (FREY)

Exposure to moon-shot potential stocks is extremely important to supercharge your portfolio. Freyr (NYSE:FREY) is a speculative bet in the battery space, effectively shaking up the industry with its robust eco-friendly approach to lithium-ion battery production.

Using hydroelectric and wind energy, the company is arguably the only clean energy battery producer setting itself apart from the competition.

Currently, Freyr is looking to kick off operations at its Norway plant, having completed factory and site acceptance tests. It also plans to accelerate the launch of a U.S. plant in Georgia, with production slated for 2025.

As a pre-revenue firm that has successfully validated its technology amidst a myriad of EV SPAC disasters, Freyr Battery is a rising star to keep tabs on. Investing in the stock won’t break the bank, with it trading for chump change.

On the date of publication, Muslim Farooque 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