3 Penny Stocks to Watch If You're Searching For ESG Stocks Right Now

Renewable Energy and Electric Vehicle Penny Stocks To Watch Right Now

After a day of political turmoil in the U.S., the stock market and many penny stocks managed to move higher. It seems as though investors feel quite confident in the direction that the U.S. is moving. With election troubles behind us at this point, we can finally start 2021 off by searching for penny stocks to watch.

Given that Joe Biden will be going into office, there is a large focus on both renewable energy and electric vehicle penny stocks. There are a few reasons why this is the case. For one, Biden has stated that he intends to bring the U.S. closer to becoming renewable energy-dependent within the next few decades. Given how far behind we are in this regard, it seems as though a lot of capital will go toward developing this infrastructure. 

If renewable energy is the primary focus, electric vehicles are definitely a secondary result of this shift. In addition, the rise of stars like Tesla Inc. (TSLA Stock Report), has helped to put EV penny stocks on the map in a big way. Now, investors should keep in mind that there is a lot of development that needs to go into place in order for renewable energy and EV's to take over. But, with strong demand from the public and guidance from the federal government, it appears as though we are well on the way.

That has created a broader niche in the market referred to as "ESG" stocks. This term references the ideologies of "Environmental, Social, and Governance," and puts a focus on companies that look to decrease the carbon footprint, create a welcoming corporate environment, and run operations ethically and efficiently, keeping in mind the communities surrounding operations.

ESG Penny Stocks To Watch

• Tantech Holdings Ltd. (TANH Stock Report) 
• American Battery Metals Corp. (ABML Stock Report) 
• Torchlight Energy Resources Inc. (TRCH Stock Report) 

ESG Penny Stocks to Watch: Tantech Holdings Ltd. 

Tantech Holdings Ltd. is a China-based producer and distributor of electric vehicles. At the beginning of last month, Tantech announced that it had launched a new driverless and fully autonomous street sweeper. This is a big deal for two reasons. For one, the competition in this area of the EV industry is limited. This means that Tantech could potentially have a higher chance of becoming the leading provider of these vehicles. Additionally, if it can prove that these vehicles work well, the market demand could increase dramatically. 

In the announcement, the company states that the autonomous street sweeper known as the Shangchi SC-100A, will replace as many as 8 humans that are typically needed for the job. In addition, these vehicles are extremely quiet, and the company has worked to greatly improve its efficiency. Tantech states that these vehicles can be used continuously for up to ten hours which is more than the typical gas-powered street sweeper could do.

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With COVID cases on the rise, human labor has become a public health issue. So in the short term, it seems as though these street sweepers could have a large use by the public. In addition, if all goes well, these vehicles could become the long term solution to public sanitation. With all of this considered, is TANH a penny stock to watch?

ESG Penny Stocks to Watch: American Battery Metals Corp.

American Battery Metals Corp. is a penny stock that we have been discussing for several months. In the past six, shares of ABML stock have risen by a staggering 784%. In the past month alone, shares have shot up by over 400%. So, why this meteoric rise for a relatively unknown alternative energy penny stock? Well, there are a few reasons why this is the case. For one, the election of Joe Biden has put a large focus on companies like ABML.

American Battery Metals works by mining, exploring, and recycling a large range of battery metals. In Nevada, the company owns over 12,940 acres of mines where various metals are produced for use in batteries. A few weeks ago, the company announced that it had embarked on a pilot program to begin recycling lithium-ion batteries at its Fernley, NV plant. 

For those who don't know, lithium-ion batteries are without a doubt, the most popular choice for most electronics and EVs. These batteries are used in everything from smartphones to current electric vehicles and more. CEO of the company, Doug Cole, stated that "ABTC (the construction firm behind the plant) is making great strides to construct our pilot lithium-ion battery recycling facility in Fernley, Nevada as quickly as possible. We are grateful for Nevada's support to do so. At full capacity, our pilot facility will recycle 200,000 metric tons of feedstock a year to recover critical and strategic materials needed to manufacture new EV and consumer electronic batteries."

With the increasing demand for both consumer electronics and electric vehicles, ABML poses an interesting model. With that being said will ABML be one of the penny stocks to watch for January? 

ESG Penny Stocks to Watch: Torchlight Energy Resources Inc.

Torchlight Energy Resources Inc. is another penny stock that we have discussed a few times in the past several months. On January 7th, shares of TRCH stock shot up by a solid 17% during intraday trading. This might be a bit confusing for some who haven’t followed the company’s recent developments. On the surface, you might assume by it’s “about” that Torchlight is an oil and gas company. So what’s it doing on a list of renewable energy stocks?

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Late last year, Torchlight announced an agreement with Metamaterial, to loan the latter around $500,000. The goal with this is to offer Metamaterial the funds it needs to continue its research on alternative energy. This came right after the two signed an agreement for a business combination. John Brda, CEO of Torchlight, stated in regard to the combination that "we are very excited to sign the definitive agreement with Metamaterial. We believe this transaction provides our shareholders with the best opportunity moving forward. Metamaterial offers proven disruptive technology with strong environmental, social, and governance priorities."

What's interesting about this deal is that Metamaterial is a cleantech company. Its products are used to manipulate light. So among its applications, Meta's technology is used for things like solar energy as opposed to oil and gas. With the new directive, this new company could be one to watch as renewable energy stocks have earned a captive audience with the incoming President of the US.