Creating a basket of battery-making technology companies might just be worth the risk in the long run. In this clip from "The High Energy Show" on Motley Fool Live, recorded on May 31, Motley Fool contributor Jason Hall discusses two stocks that could be optimal portfolio picks.
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Jason Hall: We're talking about future technologies and we've seen battery electric has become really established in automobiles. Lots of limitations in heavy-duty, medium-duty and commercial transit because of the weight of the battery, the time to recharge them, and all of that stuff. Solid-state is very likely to be a big part of the future. Again, solid-state, you get the liquid out of the batteries, you can make them lighter, you can make them smaller, a deal with that energy density thing that Tyler was talking about, that liquid fuel steel with. They'll take a charge faster. There's all of those benefits and problems that nobody has been able to show they can manufacture them at scale and at cost. I'm going to put two stocks together here. QuantumScape (QS 5.69%) ticker Q-S and Solid Power (SLDP 4.27%) ticker, S-L-D-P. These are two companies that are both really focused on it. They also have large automotive partners like Ford (F -1.92%), I think, has partnered with Solid Power and then QuantumScape has VW (VWAGY 1.26%) and several other manufacturers that are working with them. They've made what looks like big money to us, but it's pretty small stakes for them that they've invested in those companies. But the point is that the automotive industry is looking very hard at this and is putting capital into this space. I think investing in a couple of companies that could play a big role in commercializing that technology is worth risking a small amount of capital in this basket.