Tesla, Toyota and their lithium suppliers are clean energy winners

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Stock pickers and research chiefs are scouring sharemarkets for companies positioned to win from an investment super-trend that is accelerating.

The transition to clean and renewable energy sources over the next decade will offer significant opportunities to create wealth for investors who own the winning stocks.

given the mandated growth of electric vehicles. But he cautions that Tesla’s valuation is high at 65 times profits, as competition from Western and Chinese rivals increases. Another automaker is the fund manager’s pick to play the transition. “Toyota has the biggest portfolio of critical patents for solid-state battery technology in the [auto] industry,” he says. “They’re a couple of years away from commercialising the [new solid-state] batteries, but it would be transformative for adoption of electric vehicles. Toyota says it will have cars in the market later this decade based on their proprietary solid-state battery architecture, so we think it’s underappreciated.

According to Wynter Australia now has a target to take 82 per cent of its national grid electricity from renewable sources by 2030, while other ways to play clean energy include investing in companies that can process minerals like lithium from their raw form into higher value battery-grade ingredients.ASX stock picker Andrew Mitchell, co-founder of Ophir Asset Management, says his favoured buy among clean energy’s supporting industries is newly-listed LGI Limited.

 

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