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The battery stocks to buy as the electric vehicle market explodes: UBS

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UBS has named its favorite electric vehicle battery stocks, as Tesla's "aggressive" cost-cutting drive shows that supply chain expenses can be "substantially" lowered while profitability improves.

The world is moving "rapidly" towards full electrification, the Swiss bank said. It sees global penetration of electric vehicles, or EVs, topping 80% by 2040, and worldwide demand for EV batteries increasing six-fold by 2025.

This booming demand is set to benefit Asian EV battery makers in particular, as they are best positioned to take market share away from incumbents, the UBS analysts, led by Tim Bush, said.

They listed their top battery stocks – all of which have a potential upside of around 30% or more.

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