Daimler AGDDAIF is taking another stride for the electrification of future electric vehicles (EVs), per Reuters. This German automaker is set to purchase battery cells amounting to more than 20 billion euros (18 billion pounds) by 2030. This move is in sync with its many other German counterparts, which are moving in a big way in the EV space as European regulators are increasingly imposing sanctions on poisonous diesel emissions.
Daimler is emphasizing on battery cell research and next-generation batteries to lower its reliance on expensive rare earth minerals such as cobalt. Notably, cobalt is largely sourced from the war-ravaged Democratic Republic of Congo. The company announced that the Mercedes-Benz EQ electric car, likely to be introduced in 2019, will use battery cells that contain 60% nickel, and 20% manganese and cobalt each. Daimler also stated that in future, Mercedes-Benz electric cars will contain batteries with 80% nickel, and 10% manganese and cobalt each.
Automakers across the globe are working vigorously on different battery combinations for efficient use in battery cathodes. Engineers of the Stuttgart-based Daimler are also working on a ratio with 90% nickel, and 5% manganese and cobalt each in order to cut the usage of cobalt even further.
The company already inked battery cell supply deals with SK Innovation and LG Chem of Korea, and Contemporary Amperex Technology of China. In fact, Daimler plans to launch 130 electric and hybrid vehicles by 2022. It also devices manufacturing electric vans, buses and trucks.
Over the past year, shares of Daimler have underperformed the industry it belongs to. Over this time frame, shares of the company have plunged 36.4%, whereas the industry decreased 24.7%.
Currently, Daimler carries a Zacks Rank #3 (Hold).
A few better-ranked stocks in the auto space are Allison Transmission Holdings, Inc. ALSN , Fox Factory Holding Corp. FOXF and America's Car-Mart, Inc. CRMT . While Allison Transmission and Fox Factory currently sport a Zacks Rank #1 (Strong Buy), America's Car-Mart carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here .
Allison Transmission has an expected long-term growth rate of 10%. Over the past six months, shares of the company have increased 2.8%.
Fox Factory has an expected long-term growth rate of 17.9%. Over the past six months, shares of the company have risen 53.4%.
America's Car-Mart has an expected long-term growth rate of 19.5%. Over the past six months, shares of the company have grown 4.8%.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by new referendums and legislation, this industry is expected to blast from an already robust $6.7 billion to $20.2 billion in 2021. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot trades we're targeting>>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
America's Car-Mart, Inc. (CRMT): Free Stock Analysis Report
Fox Factory Holding Corp. (FOXF): Free Stock Analysis Report
Daimler AG (DDAIF): Free Stock Analysis Report
Allison Transmission Holdings, Inc. (ALSN): Free Stock Analysis Report
To read this article on Zacks.com click here.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
