Governments around the globe are emphasizing clean energy and are investing significantly to achieve net-zero emission targets. Given the growing importance of renewable energy, the battery recycling market is poised to grow in the coming months. Thus, we think the stocks of Umicore (UMICY), Li-Cycle (LICY), and American Battery Technology (ABML) might be ideal additions to one’s renewable energy portfolio. Let’s discuss.The renewable energy sector has gained much steam over the past years, fueled by policy support and net-zero emission targets by several governments worldwide. The International Energy Agency (IEA) has stated that the renewable energy sector is one of the fastest-growing sectors, with 290 GW of new generation capacity installed this year worldwide, marking a record-breaking year.
In addition, IEA predicts the growth of renewable energy will accelerate over the next five years, driven by commitments made by world leaders. As of October 2021, governments have approved spending $480 billion on clean energy and $45 billion on renewables.
Furthermore, the global lithium-ion recycling battery market is expected to grow by $1.11 billion, at a CAGR of 17.8% over the 2021 - 2025 period. So, we think battery recycling stocks Umicore SA (OTC:UMICY), Li-Cycle Holdings Corp. (LICY), and American Battery Technology Company (ABML) might be ideal additions to one’s renewable energy portfolio.