Penny Stocks To Watch As Green Energy Gains Ground
In the past few years, the green revolution has served to benefit green energy penny stocks greatly. While the need for new forms of alternative energy has been pertinent for several decades, demand for EVs, solar, wind power and other alternative energy methods has risen greatly in the past few months.
What’s Driving Momentum For Green Energy Penny Stocks?
One of the major proponents of the current move for green power is President Joe Biden. On Wednesday, March 31st, green energy penny stocks were up on Biden’s unveiling of his new infrastructure plan. This plan includes over $174 billion in funding to help grow the EV market. Additionally, the plan calls for over $100 billion in funding to update the U.S. power grid.
While the proposal has not yet become law, it could be one of the largest moves ever made by the U.S. to get emissions under control. Biden has continuously committed to putting the country on track for net-zero carbon emissions by the year 2050.
Aside from billions in funding, it will also need the cooperation of a vast range of renewable-based businesses. Biden also proposed a new goal to reach 30 gigawatts of offshore wind energy by 2030 earlier in the week. While near-term emissions goals are equally important for investors to consider, a lot of the talk surrounding green energy tends to be focused on the long term. Let’s take a look at a few green energy penny stocks to watch in April 2021.
Green Energy Penny Stocks to Watch
- Aqua Metals Inc. (NASDAQ: AQMS)
- NexGen Energy Ltd. (NYSE: NXE)
- United States Antimony Corp. (NYSE: UAMY)
Battery Recycling Penny Stocks To Watch: Aqua Metals Inc. (NASDAQ: AQMS)
Aqua Metals Inc. is a lead-acid battery recycler, seeing heightened popularity in several recent trading sessions. Earlier this year, the company signed a recycling partnership with BASF to expand lithium battery recycling operations. This is in addition to the previous milestones that the company has reached over the last year.
With electric vehicles and clean energy storage coming to the forefront, Aqua could play an important role. Millions will be spent on lithium-ion batteries, but with few ways to sustainably recycle, this marks the advent of a new opportunity for companies like Aqua Metals. When you’re talking about electric vehicle stocks, you can’t forget the entire ecosystem, including batteries. The company’s refining process allows it to extract cobalt, nickel, manganese, and lithium to put back into the supply chain.
There’s also plenty of lead to recycling out of these batteries. This is an entirely other side of the business tapping into a multi-billion dollar market. With this, the company has also focused on strategic investments. Aqua’s 10% ownership stake in LINICO could prove beneficial. LiNiCo is a cleantech aggregator focused on closed-loop lithium-ion battery recycling. Other investors include Comstock Mining Inc. (NYSE: LODE).
Assuming the spending bill could spark growth in the EV sector, Aqua Metals could be well-positioned. Analysts have also agreed. H.C. Wainwright’s latest Buy rating and $8 price target suggest strong potential for the company.
Uranium Penny Stocks To Watch: NexGen Energy Ltd. (NYSEN: NXE)
Canadian-based NexGen, is an acquisition and exploration company, developing uranium projects. It’s team of experienced individuals holds years of know-how in discovering and processing uranium. The majority of its focus is on the uranium-rich Athabasca Basin located in Saskatchewan, Canada.
This includes a 100% interest in Rook I where the Arrow Deposit is located. A few weeks ago, shares of NXE rose on the announcement of NexGen exercising $22.5 million in over-allotment options. This is in combination with a recent 33.4 million share offering. Together, the total proceeds from this should be around $172.8 million when all is said and done. While most of these proceeds will go toward the development of Rook I, the other part will be used for general corporate purposes.
Interestingly enough, IsoEnergy Ltd., which NexGen has a large stake in, has also made some major progress in the past few months. It recently hired the previous VP of Commercial from Denison Mines, Tim Gabruch, to be its new CEO. Also, Gabruch will serve as the uranium marketing advisor to NexGen. With all of this good news in mind, NXE stock could be an interesting play for renewable energy-focused investors.
Energy Metals Penny Stocks To Watch: United States Antimony Corp. (NYSE: UAMY)
United States Antimony is a company that we’ve covered numerous times in the past few months. For some context, it mines and produces precious metals including antimony and zeolite. Last month, the company completed a $14.3 million registered direct offering of common stock.
These funds will go toward the improvement of infrastructure at its Idaho Zeolite property as well as in Mexico and Montana. Additionally, the funds will go toward corporate governance expenses and the retirement of certain debt obligations. This follows another $10.7 million registered direct offering that occurred only a few weeks prior.
One of its primary mining resources, the Los Juarez Gold, Silver, and Antimony mine, only recently began operations. While some of US Antimony’s opportunities have been impeded by the coronavirus, it has worked to continue producing large quantities of metals.
These metals are used in everything from EV battery components to standard battery deployments and more. Given the same reasons that traders were following AQMS& NXE, US Antimony could be on the list of penny stocks to watch, thanks to recent moves being made by the Biden Administration.
Is It Time To Buy Green Energy Stocks
In this article, I talked a lot about the prospects of the industry in the future. But it’s not going to happen overnight. The market’s excitement surrounding green energy penny stocks is remarkable for sure. But is it premature? That’s a question most likely for another day. But given the hype factor, keep in mind that volatility can play a larger role.
If you look at many of the “big breakout” penny stocks in this industry, many are far off of their 2021 highs. One of the biggest factors is valuation. In many cases, these companies are still in start-up phases. So I feel it’s going to be important, now that many have raised capital, to see how they fundamentally expand operations to capitalize on this opportunity.