Due to the expectation that the lithium-ion battery market will soar in the coming years, investors on the prowl for growth opportunities are turning their attention to Sila Nanotechnologies. According to Allied Market Research, the global lithium-ion battery market was valued at $46.2 billion in 2022, and the firm projects the industry will grow to $189.4 billion by 2032, representing a compound annual growth rate of 15.2% from 2023 to 2032.
IPO
If you aren't an accredited investor but still want exposure to battery companies like Sila Nanotechnologies, you still have options since there are many similar publicly traded companies to consider.
1. Mercedes-Benz
As one of the world's largest EV companies, Mercedes-Benz provides indirect exposure to Sila Nanotechnologies since the luxury auto manufacturer invested in the start-up in 2019. After scaling up operations at its Moses Lake, Washington, production facility, Sila Nanotechnologies will provide Mercedes-Benz with Titan Silicon anode produced at the facility.
Mercedes-Benz plans on using the nanocomposite silicon anode in batteries for its electric G-class. According to Sila Nanotechnologies, the company's Titan Silicon provides 20% greater energy density than the leading graphite battery cells currently used in EVs, resulting in greater range. Mercedes-Benz will be the first automaker to use the nanocomposite silicon anode from the Moses Lake facility in its EVs.
2. Enovix
Just as Sila Nanotechnologies is working to provide a better alternative to traditional battery chemistry, Enovix (ENVX +2.81%) is attempting to offer an enhanced option to traditional lithium-ion batteries by using silicon anodes.
Founded in 2007, Enovix is only a few years older than Sila Nanotechnologies, making it a good option for quenching the thirst of growth investors who are interested in Sila Nanotechnologies -- especially since the company just transitioned to the revenue-generating phase of its development in 2022.
The bottom line
From EVs to wearable fitness devices to smartphones, lithium-ion batteries continue to be increasingly present in our lives. Demand for these power sources shows little sign of tapering off anytime soon, so it's no surprise that growth investors have Sila Nanotechnologies on their radars.
The company remains privately held, however, and there's no indication that management plans to take it public anytime soon. There are other options out there, though.
For indirect exposure to Sila Nanotechnologies, investors can pick up shares of Mercedes-Benz. For another innovative battery materials company, they can opt for Enovix. And, of course, QuantumScape is a worthy consideration for investors seeking a disruptive battery stock. Alternatively, investors looking to mitigate the risk of individual stocks may find an ETF a better way to charge up their portfolios.
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