Written by Adam Othman at The Motley Fool Canada

The S&P/TSX Composite Index has been on a rollercoaster this year. After several ups and downs, the Canadian benchmark index is up by 4.56% year to date at the time of this writing. More notably, the last few days of trading saw a few consecutive winning days for the market, with tech, energy, and metals mining sectors providing the boost.

As the focus on going green increases, publicly traded companies across various industrial spaces stand to benefit, growing shareholder value. Investing in electric vehicle (EV) stocks and battery metal stocks can offer investors good exposure to greener spaces. Today, I want to explore whether betting on EV stocks or battery metals stocks presents the potential for better investment returns.

To this end, I will discuss one top stock from each space to paint a clearer picture.

Lion Electric

Lion Electric (TSX:LEV) is a $559.76 million market capitalization vehicle manufacturer, primarily focusing on the production of electric school buses, trucks, and other commercial vehicles. With little competition in the EV space in Canada, its focus on commercial EVs gives it a niche it can enjoy without competing against industry giants.

Besides a niche focus, it differs from other EV manufacturers in how it generates revenue. Where most companies sell directly to consumers, Lion Electric stock relies on recurring revenue from large corporations and governments.

That said, it is not a profitable company right now. As a small name, the venture capital stock is a riskier-than-average stock. As of this writing, it trades for $2.97 per share, down by 45% from its 52-week high. Despite its small presence, this EV stock can deliver stellar long-term returns as the broader industry grows.

American Lithium

American Lithium (TSXV:LI) is a metals and mining company primarily engaged in the exploration stage. The Canada-based company focuses on acquiring, exploring, and developing lithium deposits.

Lithium is the key ingredient for making batteries that power everything from EVs to smartphones and other portable devices that are an integral part of our lives. A small name in the mining industry, it has a $450.78 million market capitalization.

American Lithium stock is not the biggest Canadian lithium stock, but it’s worth watching closely. The company announced in July that it is making progress with its work in Macasuni, and the company’s chief executive officer Simon Clarke has said that American Lithium will launch several pilot operations soon.