Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider

a woman stands next to a large green battery smiling and eating an apple with a lifting green arrow line in the background, indicating rising stock prices.

With decarbonisation on many minds following the end of the United Nations’ COP 26, shares in the ASX battery metals and electrification sector are looking promising.

At least that’s what Ausbil chair, chief investment officer, and head of equities Paul Xiradis believes.

He states the sector is housing some compelling opportunities for strong financial year 2022 earnings among copper, nickel, lithium, and cobalt producing stocks.

Here are 5 battery materials shares he thinks look pretty good right now.

5 battery metal shares that could outperform

BHP Group Ltd (ASX: BHP)

According to Xiradis, Ausbil likes BHP for its exposure to the electrification sector.

While BHP is predominantly an iron ore, copper, and coal miner, the company also has a nickel branch.

The company recently signed an agreement with Prime Planet Energy & Solutions and Toyota Tsusho Corporation to supply nickel for lithium-ion batteries.

The BHP share price is trading at $38.08 at the time of writing, up 4.1%.

OZ Minerals Limited (ASX: OZL)

Another battery metal share Xiradis expects to perform well in financial year 2022 is copper producer, Oz Minerals.

Oz Minerals recently announced it’s in line to meet its full-year copper production guidance of between 120,000 and 145,000 tonnes.

Right now, a holding in Oz Minerals will cost an investor $26.24 per share.

Orocobre Limited (ASX: ORE)

Xiradis also notes that lithium producer Orocobre appears to be a battery metals share gearing up to post strong earnings for financial year 2022.

The company recently merged with formerly ASX-listed lithium producer Galaxy Resources Ltd.

Its stock is swapping hands for $9.82.


All-rounder battery metals producer IGO is also set to outperform this financial year, according to Xiradis.

IGO owns and operates the Nova nickel-copper-cobalt operation and is invested in a lithium-focused joint venture.

Shares in the company are currently going for $10.33 each.

Lynas Rare Earths Ltd (ASX: LYC)

The final battery metals share Xiradis is expecting to post good returns for financial year 2022 is Lynas Rare Earths.

The company is the only large-scale rare earths producer outside of China, operating a deposit in Western Australia.

The company’s share price is $8.68 right now.

The post Looking to invest in the electrification and battery theme? Here are 5 ASX shares to consider appeared first on The Motley Fool Australia.

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Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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