Last year saw sectors like electric vehicles and alternative energies soar amidst a global shift away from the reliance on fossil fuels. The industry received a further boost with the green-friendly Biden administration winning the election as part of the Democratic platform revolved around a $2 trillion commitment to the future of clean energy in America. After the breakout of industry leader Tesla (NASDAQ:TSLA), every automaker on Earth is coming out with electric vehicles to try and maintain their relevance in a new world where reliance on driving has been minimized by the COVID-19 pandemic. Let’s take a look at a few stocks that could surge (pardon the pun) in 2021.
Plug Power (NASDAQ:PLUG)
When we talk about the clean energy sector we often think strictly of electric vehicles, but Plug Power is a hydrogen fuel cell technology company that is getting a lot of attention in international markets. In the past couple of weeks Plug has secured deals with the SK Group in South Korea and Groupe Renault in Europe.
The SK Group is one of Korea’s largest conglomerates and has a very real goal of six million fuel cell vehicles and over 1200 refilling stations by 2040. The Groupe Renault is one of Europe’s leading automakers and has tapped Plug to provide its hydrogen fuel cell technology for its commercial delivery vehicles, and plans on building a plant in France. The stock has responded by screaming to new all-time highs of $73.90 per share.
Velodyne Lidar (NASDAQ:VLDR)
We could have put any of the Lidar companies here because they all have a chance of breaking out, but Velodyne has an expanding portfolio of over 183 projects in its pipeline and a history of working with big names including Google, Microsoft, Caterpillar, Ford, Tencent, and Baidu. If you are not completely sure what Lidar is, it stands for Light Detection and Ranging. Think of it as a sophisticated way for lasers to map out environments and accurately calculate ranges. Why would this be of significance you may ask? Autonomous driving.
The next frontier for the automotive industry has massive players like Tesla, Apple, and Ali Baba already deep into research and development. The key to much of this technology will be Lidar sensors and these companies have a chance to explode over the next few years.
MP Materials Corp. (NYSE:MP)
You may not have heard of this one yet but it is a relatively new company on the public markets. MP Materials is a pick and shovel play on the electric vehicle market as the company mines the rare-earth minerals that are crucial to the motors that charge electric vehicles, as well as larger machinery like solar wind turbines and even drones. The company represents 15% of the total rare earth minerals mined and is the largest such miner in North America. What does that mean?
A substantial industry moat that should help solidify MP as one of the industry leaders, and as we move into the future and more rare-earth minerals are needed, the revenue growth should rise substantially. Investors may want to watch the volatility with this stock until it stabilizes as is normally the case with newly traded companies.