4 Stocks Leading the Charge in the Rapidly Growing EV Parts and Components Market
These notable industry players are pioneering the development of innovative electric vehicle parts and components, such as advanced battery swapping systems, electric motors, and charging infrastructure, to support the growing demand for EVs.
- Sometimes, the smartest strategy when investing in a hot industry is to buy the “picks and shovels” stocks that support the big players and the industry as a whole.
- This strategy is typically less crowded, which provides a way to capitalize on segments of an industry before stock prices take off.
The global electric vehicle parts and components market is experiencing significant growth driven by the increasing demand for eco-friendly and sustainable transportation solutions. According to Precedence Research, the global electric vehicle parts and components market size was valued at $205.82 billion in 2024, grew to $252.14 billion in 2025, and is expected to surpass $1.56 trillion by 2034, representing a compound annual growth rate (CAGR) of 22.50%. This remarkable growth is attributed to the rising awareness of the benefits of electric vehicles, including reduced environmental pollution, lower operating costs, and improved performance.
Notable players in the industry, such as U Power Limited (NASDAQ: UCAR), Enovix Corporation (NASDAQ: ENVX), Aptiv PLC (NYSE: APTV), and Li Auto (NASDAQ: LI), are pioneering the development of innovative electric vehicle parts and components, such as advanced battery swapping systems, electric motors, and charging infrastructure, to support the growing demand for electric vehicles.
U Power Limited (UCAR)
U Power Limited (NASDAQ: UCAR) is a prominent player in the EV industry with a primary focus on battery-swapping technology. The company’s proprietary UOTTA battery-swapping technology uses a robotic swapping system, which can automatically exchange discharged batteries with fully charged ones. The process takes less than 5 minutes and requires minimal space. This technology is a game-changer as it allows customers to rent batteries instead of purchasing them outright, making EVs more accessible to a wider range of consumers. U Power has a strong intellectual property portfolio, with 46 issued patents and 14 pending patent applications in China.
According to a report by Precedence Research, the global electric vehicle battery swapping market is estimated to be valued at $3.49 billion in 2024 and is anticipated to reach $96.57 billion by 2034, expanding at a remarkable compound annual growth rate (CAGR) of 39.40%.
Why U Power Limited Stands Out: A Game-Changing Approach
Proprietary Battery-Swapping Technology: U Power’s UOTTA technology enables quick and efficient battery swaps in just a few minutes. This, in return, makes electric vehicle ownership more practical and stress-free.
Advanced AI-Powered Battery Management: The company has integrated Artificial Intelligence (AI) into its battery management systems to optimize battery performance, forecast energy demand, and enable real-time battery health monitoring.
Strategic Partnerships and Global Expansion: U Power has formed partnerships with key players in Asia, Europe, and Latin America, including SAIC Motors, Quantum Solutions, and Treep Mobility, which allows it to expand its battery-swapping solutions to new markets and strengthen its global presence.
First-Mover Advantage in Emerging Markets: U Power is leveraging its early-mover advantage in emerging markets, such as Thailand, Japan, Portugal, and Peru, to establish a comprehensive network of swapping stations and operating systems to position the company for future growth. This early mover advantage is expected to provide a competitive edge to U Power in these medium-sized markets, which competitors are ignoring.
Reducing the Overall Cost of Ownership: U Power’s innovative approach allows customers to subscribe to battery-swapping services and purchase electric vehicles without batteries, reducing the upfront ownership cost. By doing so, the company significantly reduces the purchase price of EVs, making them more affordable and accessible to a wider range of consumers.
Comprehensive Maintenance: The company takes on the responsibility of maintenance and battery health to ensure customers have access to high-performance batteries at all times and provide peace of mind for electric vehicle owners.
Strong Leadership Foundation
U Power’s CEO and Chairman of the Board, Jia Li, brings over 20 years of experience in sales and marketing, as well as 15 years in automotive and financial management. Additionally, Bingyi Zhao, Chief Financial Officer and Director of the company has over 10 years of experience in the financial sector, having served in key roles at Shanghai Huayue Equity Investment Management Co. and HSBC Bank (China).
U Power is well-equipped to navigate the evolving EV landscape and capitalize on emerging opportunities due to its strong leadership, which understands the automotive industry’s operations, market dynamics, and financial management.
The company’s high insider ownership of 39.07% also reflects that the company’s decision-making executives are focused on creating sustainable value for all stakeholders rather than just pursuing short-term gains.
Enovix Corporation (ENVX): Revolutionizing Electric Vehicle Batteries
Enovix Corporation (NASDAQ: ENVX) is a leading developer of innovative battery technologies specifically designed for the electric vehicle (EV) and related markets. The company has a strong foundation in 3D Silicon cell battery design, and its Enovix cell architecture is known for its unique mechanical structure, which significantly enhances energy density and battery life. Enovix generates revenue by selling its batteries and engineering contracts worldwide with original equipment manufacturers (OEMs).
Developing Hi-Tech Batteries: Enovix is collaborating with prominent global automotive original equipment manufacturers (OEMs) to design batteries for EVs. These partnerships aim to optimize battery performance, charging speed, and thermal management through the development of a stacked electrode structure. The company works closely with leading EV manufacturers and suppliers to integrate its batteries and related components into their products.
Fast Charging Capabilities: Enovix’s cell design enables an order of magnitude improvement in cell thermal distribution, which helps facilitate faster charging, improved lifetime, and simplified pack assemblies due to the reduced cooling system requirements. Furthermore, the company’s volumetrically efficient constraint system limits swelling during charge and discharge.
Research And Development: Enovix is committed to ongoing research and development to improve the safety and performance of its batteries. This includes developing new materials and technologies that can enhance the overall efficiency and range of EVs. The company also operates research labs in India and Malaysia.
Expanding Product Offerings: The company is exploring new opportunities to apply its battery technologies in electric motorcycles, scooters, and other micro-mobility vehicles to further diversify its revenue streams and increase its EV parts and components market share.
Aptiv (APTV): Advanced Technologies and Solutions
Aptiv PLC (NYSE: APTV) is a leading global technology company that specializes in developing advanced safety, electrification, and connected car solutions for the automotive industry. The company has a focus on sustainability and plays a crucial role in the transition to a more electrified and environmentally friendly transportation system.
Advanced Safety Solutions: Aptiv offers advanced safety features and user experience enhancements to support the development of new electric vehicle (EV) platforms and models. The company’s safety solutions are designed to protect drivers and passengers while also enhancing the overall driving experience. Aptiv’s Gen 6 ADAS platform is known as a high-performance, scalable solution at a competitive cost.
Electrification Technologies: Aptiv is investing heavily in the development of cutting-edge electrification technologies, including high-voltage electrical architecture solutions and electric motor control systems. These technologies are designed to support the growing demand for electric vehicles and enable the creation of more efficient and sustainable transportation systems.
Modular Electrical Distribution Systems: Aptiv’s modular electrical distribution systems allow flexible and customizable power distribution within a vehicle by using modular components that can be easily adapted to different vehicle architectures. This technology is designed to lower the overall cost of EV production. These systems are also more efficient and enhance the overall performance of EVs.
Battery Management Systems: The company is developing advanced battery management systems to support the growing demand for electric vehicles. Aptiv’s battery management systems are designed to optimize battery performance, safety, and lifespan, enabling the creation of more efficient and sustainable EVs.
Li Auto (LI): A Leader in China’s Electric Vehicle Market
Li Auto (NASDAQ: LI) is a leading Chinese manufacturer that produces both extended-range electric vehicles (EREVs) and battery electric vehicles (BEVs). The company has established a strong presence in the country’s rapidly growing new energy vehicle (NEV) market. In addition to its vehicle manufacturing business, Li Auto also has a significant EV parts and components business, which supplies critical components to other EV manufacturers.
Advanced Battery Technology: Li Auto is focusing on the production of advanced battery technology, including lithium-ion batteries and battery management systems. The company’s batteries are designed to provide high energy density, long cycle life, and excellent safety performance. The company also designs and manufactures high-performance electric motor systems, including motors, gearboxes, and control systems.
Electrical Architecture: Li Auto is continuously expanding its electrical architecture product portfolio. This includes the development and production of wiring harnesses, connectors, and electrical distribution systems. The company’s electrical architecture products are designed to provide high reliability, efficiency, and flexibility and are used in a range of EV applications.
Component Supply Chain: Li Auto has established a robust component supply chain with a network of suppliers and partners that provide critical components for its EV parts and components business.
Conclusion: A Compelling Investment Opportunity
U Power Limited is poised for tremendous growth and has the potential to revolutionize the industry due to its innovative battery-swapping technology and strategic expansion plans. The company is aggressively expanding its presence in key markets across the globe, including Peru, Thailand, Hong Kong, Japan, and Portugal, which will serve as a starting point for further expansion into the respective continents. Additionally, the company’s focus on medium-sized markets, which are often ignored by competitors, provides a unique competitive advantage.
Furthermore, U Power’s solutions cater to a wide range of vehicles, including small cars, large vehicles, and even semi-trucks, making it a one-stop shop for EV owners. This versatility, combined with its first-mover advantage in emerging markets, positions U Power as a takeout target and a leader in the EV battery-swapping market.
Read Next: Why This Electric Vehicle Market Player’s Proprietary Battery-Swapping Technology is a Game-Changer
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