Electric vehicles (EVs) continue to be a promising growth opportunity despite marketwide weakness. Global EV sales increased by 20% last year, according to Benchmark Mineral Intelligence. The focus is now shifting to the lithium-based batteries that power these vehicles, with a push for improved durability and greater driving range.

QuantumScape (NASDAQ: QS) has been working on solid-state lithium batteries since 2010. The company’s stock began to soar last year after perfecting a crucial battery production process. While it’s currently only shipping prototypes to its partner PowerCo, it aims to start large-scale commercial production by 2027.

Rivals like BYD and Toyota Motor have also entered the race to develop solid-state lithium batteries for EVs, with plans for commercialization by 2027. China’s Geely is set to complete its own solid-state lithium battery this year. Major automakers are investing in this next-generation battery technology, posing a challenge for QuantumScape.

Despite the potential of QuantumScape, the rise of competitors in the solid-state lithium battery space raises doubts about its ability to compete long-term. Investors are advised to consider more promising growth prospects. The Motley Fool Stock Advisor team has identified the 10 best stocks to buy now, and QuantumScape did not make the cut.

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