Investing in electric vehicles has been incredibly rewarding for investors in recent years. Indeed, there are a wide variety of sub-sectors within the EV space to consider. For those looking to take advantage of the remarkable upside electric vehicles provide, battery stocks might be a great place to start.

That’s because battery suppliers play a crucial role in this sector’s advancement. In order for the EV revolution to take hold, battery technology will need to continue to improve.

Indeed, it is no wonder that so much of an EV’s value is attributed to its battery. The International Energy Agency estimates that over 25% of an electric vehicle’s value is attributed to the cost of its battery. This shows why investing in battery stocks could be extremely profitable for investors over the long run.

The overall EV market is expected to grow massively over the coming years, growing to a staggering $434.4 billion by 2028. Accordingly, I see significant upside for key battery stocks which are well-positioned to ride this wave. Let’s dive into these three.

QuantumScape (QS)

QuantumScape (NYSE:QS) may be among the more more speculative battery stocks on this list. However, don’t let that stop you if you’re looking to get ahead of the curve.

The early-stage maker of solid-state batteries has made incredible progress in commercializing its technology. Indeed, for those looking to get in early, now is the time to place one’s bets on this space. In the solid-state battery world, QuantumScape remains a leader in terms of development and commercialization. Thus, many analyst expect the company’s market position to improve in the coming years, as solid-state batteries represent the future of the EV market. It’s expected this one segment alone will likely grow by 32.5% annually from 2022 to 2028. Thus, I think QuantumScape is among the top battery stocks in the market right now.

The company recently made waves throughout the industry, with the exciting news that it has sent out its first lithium-metal battery samples. This monumental achievement brings us closer to the commercialization of such cells, which will benefit not just QuantumScape but also automotive and consumer electronics companies looking for greener, more efficient energy sources. The potential for these 24-layer battery cells to revolutionize technology as we know it is immense, and pushes QuantumScape one step closer to commercializing the holy grail of batteries.

Honeywell (HON)

Honeywell (NASDAQ:HON) is a leader in advanced technologies, operating multiple business lines. The diversity of its revenue sources provides Honeywell with ample room to expand and grow other lucrative divisions, such as its batteries segment. The firm’s investments in R&D provide investors with an attractive speculative bet on growth in this sector.

Among the key products investors are watching in Honeywell’s battery division is the company’s new “flow battery.” This battery recently reported some impressive testing results, including up to 12-hour energy storage capacity. Thanks to its revolutionary storage system, companies may now take advantage of renewable energy sources, to a greater degree. It’s this sort of battery tech that environmentalists have been looking for, and Honeywell is at the forefront of this work.

Notably, Honeywell also recently announced its partnership with Duke Energy Corp in what could be a ground-breaking project. This partnership has enormous potential to revolutionize American cities in terms of energy storage. Therefore, HON stock remains an excellent battery pick for investors thinking long-term.

Albermarle (ALB)

Albermarle (NYSE:ALB) is a great way to add stability to any growth-oriented portfolio in 2023. The specialty chemical manufacturing firm, based out of Charlotte, North Carolina, operates three main divisions: lithium, bromine specialties, and catalysts. This company is the largest global provider of lithium for electric vehicle battery components, with the division continuing to grow each year at a rapid pace.

Albemarle’s success story over the past four consecutive quarters is truly remarkable. The company’s record-breaking achievement of surpassing $2 billion in total revenue and rewarding its investors with a healthy dividend makes investing in Albemarle a very enticing prospect for many investor types. Even though there have been some doubts as to whether this growth is sustainable, the company has consistently grown its EBITDA margins above the 25% mark over the past five years. Accordingly, ALB stock looks attractive both as a growth play within the battery tech sector, and a defensive options in the commodities space, right now.

On the date of publication, Muslim Farooque did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.