Bernstein said that demand for batteries for commercial vehicles has been growing and listed three stocks he likes with upside potential of more than 50%. The investment bank analyst wrote in a research report on August 15 that the rapid growth in demand for commercial vehicle batteries is partly due to the decline in battery prices. By the early 2030s, “battery demand for commercial vehicles is expected to be as large as demand for electric vehicles today,” they said, adding that demand for batteries used in commercial vehicles is expected to grow 70% to 56 gigawatt hours this year. Bernstein pointed out that although the battery accounts for only 5% of the global battery market, its demand is growing faster than that of electric vehicles. Analysts at the bank estimate that demand for commercial vehicles will reach 460 gigawatt hours by 2030 – “equivalent to the size of the entire electric vehicle market in 2022”. They singled out China as a driver given the electrification of light commercial vehicles using lithium iron phosphate batteries. Looking ahead, analysts at Bernstein expect there will be a “explosion” in the number of battery applications as they become cheaper and perform better. Bernstein's bets include Chinese battery maker Contemporary Amperex Technology Co., Ltd. (CATL). The company's market share in the commercial vehicle battery industry exceeds 65% and it “dominates the commercial vehicle battery market,” analysts at the bank wrote. They pointed out that CATL’s commercial vehicle battery installed capacity in the first half of the year was 13 GWh, exceeding peers Yiwei Lithium Energy (2.3 GWh) and Guoxuan High-Tech (1.1 GWh). CATL's shares are listed on the Shenzhen Stock Exchange and trade in the Amplify Lithium & Battery Technology ETF (weight 6.8%) and the KraneShares MSCI China Clean Technology Index ETF (weight 6.6%). Bernstein has an overweight rating on the stock, with a price target of 300 yuan ($42) and a potential upside of approximately 72%. Other stocks with overweight ratings include Samsung SDI and LG Chem, both of which are listed on the Korean exchange and trade as American depositary receipts in the United States. ), with a target price of 490,000 won. —CNBC’s Michael Bloom contributed to this report.