In this article, we discuss the 10 best lithium stocks to buy now along with the latest updates and outlook of the global lithium and battery market.
Despite challenges like pricing and demand headwinds in 2023, the U.S. and Canadian lithium sectors are set to make progress in 2024, with several construction projects potentially starting to boost domestic lithium supply. According to an S&P Global report, while the lithium market has seen slow activity and falling prices, especially in Asia, long-term demand fundamentals remain strong due to the global transition toward electric vehicles (EVs) and energy storage.
Even though lithium prices dropped in 2023 after reaching record highs in 2022, the long-term outlook for the EV market remains promising. According to the report, EV sales are expected to reach 30.81 million units by 2027, and lithium prices are expected to stabilize between $20,000 and $25,000 per metric ton in the coming years. Despite the industry’s cyclical nature, current pricing remains strong enough to attract investment, especially with regulatory support driving the EV transition in countries like Canada.
According to industry experts like Rahul Sen Sharma, setbacks are common in large-scale industry transformations, and the lithium market is no exception. Jean-François Béland of Ressources Québec compared lithium’s importance in the 21st century to that of coal and oil in previous eras, which shows the crucial role of lithium in electrifying transportation.
Long-Term Outlook for Lithium
According to the International Energy Agency (IEA), lithium demand is projected to rise tenfold in the Net Zero Emissions scenario and could reach 1,700 kilotonnes (kt). The market is further supported by developments in battery storage, with lithium demand for storage expected to grow more than ten times by 2050.
While alternative technologies like sodium-ion and vanadium flow batteries may slightly impact lithium demand, the metal’s role in battery production remains dominant. Moreover, solid-state batteries could create a new demand for lithium metal by 2040.
On the supply side, lithium production has significantly increased, with current global output at 190 kt, mainly from Australia and Latin American countries like Chile and Argentina. By 2030, global supply is projected to rise to 450 kt in a base scenario, but further investments will be necessary to meet future demand, especially in meeting climate goals.
Dealing With Supply Shortages
According to Benchmark Mineral Intelligence, lithium-ion battery demand is projected to nearly quadruple by 2030, reaching 3.9 terawatt-hours. The market intelligence firm forecasts lithium surplus till 2029, but despite that, the firm says that the supply of environmentally and socially responsible lithium is currently insufficient to meet demand.
Sustainably sourced lithium is not enough to meet growing demand. By 2026, only 45% of lithium demand is expected to be met by recycled or sustainably mined lithium, dropping to 35% by 2030.
In light of that, Direct Lithium Extraction (DLE), is gaining traction as a more efficient and sustainable alternative. According to BloombergNEF, DLE is expected to contribute significantly to lithium supply by 2030 and could potentially rival the output of evaporative methods, if commercialized successfully.
Lithium can be sourced from hard rock deposits like spodumene and lepidolite, as well as from brine. The main challenge with the evaporative method is its slow processing time, taking up to 18 months to extract lithium. On the other hand, DLE can reduce this timeframe to two weeks while using land and water more efficiently. Despite a decline in lithium prices, investments in DLE continue, as it offers faster and more sustainable extraction from brine sources.
According to Benchmark, DLE is a promising technology that could help prevent future lithium supply shortages by efficiently extracting lithium from brines. It is expected to contribute 14% of the global lithium supply by 2035, especially from brines, geothermal, and oil fields. However, DLE faces challenges such as high costs, scalability issues, and inflation, which have increased project expenses.
DLE offers higher recovery rates (80-90%) compared to traditional evaporation methods (20-50%). Major oil companies like Exxon are investing in DLE due to its similarities with oil extraction. Despite its potential, DLE alone won’t solve the lithium market’s structural deficits in the short term.
With that, we look at the 11 Biggest Lithium Stocks to Buy Right Now.
11 Biggest Lithium Stocks to Buy Right Now
Our Methodology
For this article, we scoured through ETFs and stock screeners to find the 25 biggest players in the lithium and lithium battery industry that are listed on the NYSE or NASDAQ. We then narrowed down our list to 11 stocks most widely held by institutional investors. We listed the stocks in ascending order of their hedge fund sentiment which was taken from Insider Monkey’s database of over 900 elite hedge funds.
Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 275% since May 2014, beating its benchmark by 150 percentage points (see more details here).
11 Biggest Lithium Stocks to Buy Right Now
11. Sociedad Química y Minera de Chile S.A. (NYSE:SQM)
Market Capitalization as of September 6: $10.14 billion
Number of Hedge Fund Holders: 9
Sociedad Química y Minera de Chile S.A. (NYSE:SQM) is a prominent Chilean company known for its production of lithium, iodine, and specialty plant nutrients. It is one of the world’s largest lithium producers and operates internationally in 110 countries across five continents.
The company has exclusive access to extensive deposits of caliche and brine in the Atacama Desert, which provide significant reserves of essential minerals, including the highest concentrations of lithium and potassium. In 2023, it sold lithium products to 207 customers in 39 countries, with a significant portion of its sales directed to Asia. The company held an 18% share of the global lithium market in the year. It is one of the biggest lithium and battery stocks to buy now,
Since 2017, the company has expanded its lithium operations globally, including acquiring spodumene resources in Western Australia through a partnership with Kidman Resources. The company has been increasing its production capacity, aiming to reach 210,000 metric tons of lithium carbonate by 2024.
On August 26, Jefferies maintained a Buy rating on the stock with a $55 price target, down from $62.8 as reported by The Fly. Jefferies revised its price target as it believes that Q2 results indicate that, despite the current low lithium prices, the company remains focused on its key projects and plans to increase its sales volumes by 2025. While it is logical for the company to prioritize maximizing production, this approach may not help with the short-term balance of the lithium market.
Before that, on August 9, Goldman Sachs upgraded its rating on the SQM stock from Neutral to Buy, with a price target of $46.50. Analyst Marcio Farid believes the potential benefits of investing in the stock outweigh the risks. Farid highlighted that the company is well-positioned to capitalize on expected improvements in lithium supply and demand dynamics by 2027.
In the second quarter, 9 hedge funds held positions worth $44.83 million in SQM. As of June 30, Kopernik Global Investors is the company’s largest shareholder with 640,997 shares, worth $26.12 million.
10. Ultralife Corporation (NASDAQ:ULBI)
Market Capitalization as of September 5: $153.433 million
Number of Hedge Fund Holders: 11
Ultralife Corporation (NASDAQ:ULBI) is a key player in the battery manufacturing industry as it offers a diverse range of lithium battery solutions and is one of the best battery stocks. The company produces both primary and secondary lithium batteries, including lithium manganese dioxide, lithium thionyl chloride, and lithium manganese dioxide carbon monofluoride hybrid types.
The batteries come in various configurations, such as 9-volt, HiRate cylindrical, and ThinCell, and are known for their high reliability and performance. They are crucial in demanding applications like military equipment, medical devices, emergency radio beacons, and industrial uses. The stock is one of our biggest lithium and battery stocks to buy right now.
At a stake value of $6.4 million, 11 hedge funds held positions in Ultralife (NASDAQ:ULBI) in the second quarter. As of Q2, Renaissance Technologies is the most significant shareholder in the company and has a position worth $2.575 million.
In the second quarter, the company reported earnings per share of $0.22 and revenues totaling $43 million, which reflects a strong growth trajectory. The Battery & Energy Products segment, which generated $36 million in revenue, was the primary driver of this growth, making up 84% of the company’s total revenue. The segment saw a significant 30.5% increase in government defense sales and a 20.1% rise in medical market sales.
Ultralife’s (NASDAQ:ULBI) strong cash flow has enabled the company to cut its debt by over 50% as of the second quarter, which improves its financial stability and reduces interest expenses.
The company is also expanding its product lineup and advancing several projects. It has set up a new manufacturing line for thin cell batteries designed for the medical wearable industry and is progressing with multiple qualification projects.
Additionally, a new chloride battery product is in the final testing stages with several customers, and significant progress is being made on an IoT battery pack. During the Q2 earnings call, the CEO announced a $0.3 million order for the company’s wearable product from an international client, which shows the company’s ability to secure valuable contracts and expand its market presence.
9. Lithium Americas Corp. (NYSE:LAC)
Market Capitalization as of September 6: $492.444 million
Number of Hedge Fund Holders: 13
Lithium Americas Corp. (NYSE:LAC) is a lithium exploration and development company that owns the Thacker Pass project which lies in McDermitt Caldera. The caldera is home to the largest known lithium deposit in the world. Lithium Americas (NYSE:LAC) is one of the biggest lithium stocks to buy now
The Thacker Pass project represents the company’s most significant growth opportunity, which is expected to capitalize on the rising demand for lithium fueled by the shift to electric vehicles and renewable energy storage.
Thacker Pass aims to produce 40,000 tonnes per annum of battery-grade lithium carbonate in its initial phase. The company is currently finalizing detailed engineering, procurement, and execution planning, with major earthworks completed and full construction expected to start later in 2024.
The project is supported by a $2.26 billion loan from the U.S. Department of Energy, and it is crucial for U.S. strategic interests. Moreover, General Motors’ exclusive rights to Phase 1 production for up to a decade show the project’s potential. With Phase 1 expected to supply lithium for around 800,000 EVs per year, Lithium Americas (NYSE:LAC) is positioned as a major player in the lithium market. Despite recent price pressures, the company’s management expects normalization of prices by the project’s 2026 operational launch.
On August 16, The Fly reported that B. Riley analyst Matthew Key reduced the price target for Lithium Americas (NYSE:LAC) from $4.50 to $4, but still maintained a Buy rating on the stock. This adjustment is due to the fact that the number of shares in circulation has increased after the company completed its recent financing.
In the second quarter, 13 hedge funds had stakes worth nearly $32 million in Lithium Americas (NYSE:LAC).
Massif Capital Real Assets Strategy stated the following regarding Lithium Americas Corp. (NYSE:LAC) in its Q2 2024 investor letter:
Lithium Americas Corp. (NYSE:LAC): No Massif Capital letter would be complete without examining something that is not working or that we got wrong. Thus far this year, the clear winner is our expectation that lithium would make a rebound. Lithium prices have continued to sell off, with lithium hydroxide and carbonate in China down ~10% since the start of the year and the lithium mining sector, as measured by the Global X Lithium ETF, down 18%. The fund’s two lithium investments, Lithium Americas Corp. (NYSE:LAC) and Lithium Argentina, are down 48% and 46%, respectively.
While the story with Lithium Americas, a development company focused on building an exceptionally large lithium asset in Nevada, is complicated, the story with Lithium Argentina is similar to the situation in Siemens Energy last year. The market tossed the baby out with the bath water. The firm’s Cauchari asset in Argentina is a bottom-cost quartile brine asset that is fully built, went into operation last year and continues ramping to full commercial production on schedule. At a 10% discount rate and $12,000 per ton lithium in perpetuity, we still think the firm’s 44% ownership stake in the mine is worth $6 a share, 82% above the current price. At $18,000 per ton, the mine is worth more than $15 a share to the company. The operating leverage to the lithium price is fantastic…” (Click here to read the full text)
8. FREYR Battery, Inc. (NYSE:FREY)
Market Capitalization as of September 5: $146.69 million
Number of Hedge Fund Holders: 13
FREYR Battery, Inc. (NYSE:FREY) offers battery solutions across the U.S., Norway, and globally. The company focuses on establishing battery cell production facilities and supplies its products to various sectors, including energy storage systems and commercial mobility, such as marine applications and commercial vehicles.
In the second quarter, 13 hedge funds held stakes in FREYR Battery (NYSE:FREY), with positions worth 30 million. The stock takes the 8th place on our list of the biggest lithium stocks to buy now and one of the best battery stocks.
In 2022, the company established a conditional offtake agreement with Powin Energy, an energy storage system integrator. This deal, spanning six years, involves the supply of 28.5 gigawatt-hours (GWh) of battery cells from FREYR to Powin. Initially, these cells will come from FREYR’s gigafactories in Mo i Rana, Norway.
By the end of the decade, the cells will be sourced from the company’s new facility in the U.S., a joint venture with Koch Strategic Platforms. Powin will incorporate these batteries into its global battery energy storage system solutions, which further cements the company’s role in the energy storage market.
The company is also making substantial investments in its U.S. operations. FREYR Battery (NYSE:FREY) is constructing Giga America, a $2.5 billion battery plant located in Coweta County, Georgia. The facility will manufacture cells for various applications, including stationary energy storage systems, electric vehicles, and marine products.
In addition, it is advancing its operations in Norway with a customer qualification plant that tests automated production processes. The successful trials conducted at this plant have marked a significant technical achievement for the company, particularly with the Casting and Unit Cell Assembly machine, a key component of the SemiSolid platform. The progress is expected to accelerate production speeds and lead to the manufacturing of multi-layer battery sample cells by mid-2024.
As of mid-2024, the company is in a strong financial position with $221.5 million in cash, cash equivalents, and restricted cash, and importantly, it has no debt. The financial stability supports its ongoing expansion and technological advancements, and it positions the company well for future growth in the competitive battery market.
7. Arcadium Lithium plc (NYSE:ALTM)
Market Capitalization as of September 6: $2.43 billion
Number of Hedge Fund Holders: 19
Arcadium Lithium plc (NYSE:ALTM) is a major player in the lithium industry, formed through the merger of Allkem and Livent. The company operates in several key regions known for lithium production, such as Argentina, Canada, and Western Australia. This geographical spread positions it well to meet the rising global demand for lithium, which is essential for the development of electric vehicle batteries and energy storage solutions.
The company uses several methods to extract lithium, including mining from hard-rock sources, traditional brine extraction, and newer technologies like direct lithium extraction. The company produces several important lithium products, such as lithium hydroxide and lithium carbonate, which are used in high-performance batteries.
On September 5, TipRanks reported that TD Cowen analyst David Deckelbaum reaffirmed a Buy rating on Arcadium Lithium (NYSE:ALTM) with a $6 price target. His positive outlook is based on the company’s strategic decisions, including the suspension of operations at the Mt Cattlin mine due to low spodumene prices, which are not covering operating costs.
Deckelbaum views this move as a strategic adjustment to focus on more profitable areas, which should improve the company’s cash flow and financial stability. He also highlighted the company’s emphasis on vertically integrated carbonate production in Argentina and spodumene production in Canada as key factors supporting the positive forecast.
A total of 27 analysts have covered Arcadium Lithium’s (NYSE:ALTM) stock with a price target of $4.31, which represents a 90.69% upside to the company’s stock price at current levels on September 6.
In the second quarter, 19 hedge funds had stakes in Arcadium Lithium (NYSE:ALTM), at a combined value of nearly $52 million.
First Pacific Advisors stated the following regarding Arcadium Lithium plc (NYSE:ALTM) in its Q2 2024 investor letter:
“Arcadium Lithium plc (NYSE:ALTM) is an integrated, low-cost, well-managed lithium producer formed by the merger of Livent, which the Fund owned, and Allkem in Australia. The merger was completed at the beginning of the year and we received, and decided to hold, shares of Arcadium. The share price has declined because of volatile lithium prices that collapsed from bubbly levels at the beginning of 2023.27 Estimates for electric vehicle production are slowing and capacity got ahead of demand; the industry is now waiting for a supply response.
Arcadium is an unusual investment for us. We normally avoid the commodity and materials sectors, and have kept our position in Arcadium small. But we believe Arcadium has a unique position in an industry with a strong long-term outlook. The company has low-cost production assets, is virtually debt-free, and has considerable capacity additions planned near-term.”
6. Sigma Lithium Corporation (NASDAQ:SGML)
Market Capitalization as of September 6: $1.03 billion
Number of Hedge Fund Holders: 20
Sigma Lithium Corporation (NASDAQ:SGML) is carving out a significant role in the global lithium market, driven by its aggressive exploration and development efforts in Brazil. The company is deeply involved in the lithium-ion battery supply chain as it caters to the rising demand for electric vehicles worldwide. It owns several properties in Minas Gerais, Brazil, including Grota do Cirilo, Genipapo, Santa Clara, and São José, which together span approximately 185 square kilometers.
In February, the company received a letter of intention from the Development Bank of Brazil (BNDES) for additional funding aimed at expanding its Grota do Cirilo project. The funding is intended to boost the plant’s production capacity from 270,000 tonnes per year to 510,000 tonnes.
Additionally, it obtained a full environmental license for a second plant, which will allow the processing of up to 3.7 million tonnes per year. The regulatory approval is crucial for scaling up production to meet growing market demands. It takes the 6th spot on our list of biggest lithium stocks to buy right now.
Further strengthening its position, Sigma Lithium (NASDAQ:SGML) secured a development loan of BRL 487 million (approximately USD 87.5 million) from BNDES on August 29. The loan will finance the construction of the company’s second Greentech Carbon Neutral Plant in Brazil.
The plant is already under construction and is expected to be completed by summer 2025. The new facility is projected to double the production capacity of its Quintuple Zero Green Lithium, which brings the total capacity to around 520,000 tonnes per year.
The company’s performance in the second quarter of the year highlights its strong market presence. The company reported a significant increase in sales volume, with prices 10% higher than those of its competitors. Revenue surged to C$62.86 million, which marked a nearly 69% increase from the previous quarter. In addition, it managed to reduce its cash costs by 22%, which enhanced its profit margins to 54% and exceeded its financial targets.
Sigma Lithium (NASDAQ:SGML) was held by 20 hedge funds in Q2 and the stakes amounted to $89.1 million. Appian Way Asset Management is the top shareholder of the company and has a position worth $31.3 million as of Q2.
5. Enovix Corporation (NASDAQ:ENVX)
Market Capitalization as of September 5: $1.4 billion
Number of Hedge Fund Holders: 22
One of the best lithium and battery stocks, Enovix Corporation (NASDAQ:ENVX) is engaged in designing, developing, and manufacturing lithium-ion batteries. The company has introduced a distinctive 3D silicon lithium-ion battery that utilizes a 100% silicon anode, which is a significant advancement over the traditional graphite anodes used in most batteries.
The breakthrough design allows the company to achieve energy densities exceeding 900 Wh/l while ensuring a cycle life that surpasses 500 cycles. Its patented 3D cell architecture effectively addresses common issues associated with silicon anodes, such as swelling and lithium trapping, enhancing both the safety and efficiency of their batteries.
In the second quarter, 22 hedge funds had investments in Enovix (NASDAQ:ENVX), with positions worth $153.245 million. Electron Capital Partners is the most prominent shareholder in the company as of Q2 with a stake worth $89.7 million.
Enovix (NASDAQ:ENVX) is building a substantial $1.2 billion high-volume manufacturing plant in Malaysia. The facility is set to boost its production capacity significantly, which will allow the company to meet the increasing demand for its advanced batteries across various applications, from mobile devices to electric vehicles.
The construction is progressing well, with the Site Acceptance Testing (SAT) for the Fab-2 Agility line already completed. The first batch of EX-1M samples has been produced and sent to customers. The SAT for the Fab-2 high-volume manufacturing line is expected to be finalized shortly, with initial production projected to begin in the third quarter of 2024 and ramping up through 2025.
In recent developments, Enovix (NASDAQ:ENVX) has entered into a Memorandum of Understanding (MOU) with Elentec, a prominent battery pack manufacturer in Asia with significant clients like Samsung. The partnership is set to strengthen the company’s position by leveraging Elentec’s expertise in battery pack design and high-volume manufacturing.
Furthermore, in May, the company signed a development agreement with one of the top five smartphone OEMs globally. The company also announced a non-binding MOU in July with a major global automotive OEM to explore scaling its battery technology for the EV market. The agreement focuses on optimizing the company’s cell design to improve performance at various levels, including the cell, pack, and vehicle. These developments make Enovix (NASDAQ:ENVX) one of the best battery stocks.
Massif Capital Real Assets Strategy stated the following regarding Enovix Corporation (NASDAQ:ENVX) in its Q2 2024 investor letter:
“Enovix Corporation (NASDAQ:ENVX): Enovix is perhaps a bit of an outlier in our portfolio given that it is a battery manufacturer selling into consumer goods markets, but it fits nicely in what we believe to be the Massif Capital analytical sweet spot, businesses where science/technology, geopolitics/geoeconomics and energy/materials overlap. While some would argue that Enovix is inappropriate for a liquid real asset portfolio, the traditional definition of real asset businesses is dated.
Traditionally, real asset businesses are those that own and operate real estate, infrastructure, and natural resource assets. While this definition is workable, and most of the companies we invest in fall into one of these categories, it does not consider the ever-growing role of applied physical sciences in specific manufacturing fields, nor does it take into account the growing importance of material sciences and the changing nature of energy in general. Enovix is a material sciences business aiming to transform an ever-growing list of unique, highly refined materials into energy storage devices. They create value by understanding materials’ physical and electrochemical properties better than others…” (Click here to read the full text)
4. Rio Tinto Group (NYSE:RIO)
Market Capitalization as of September 6: $98 billion
Number of Hedge Fund Holders: 29
Rio Tinto Group (NYSE:RIO) is involved in the exploration, extraction, and processing of mineral resources on a global scale. Its Minerals segment focuses on the mining and processing of borates, titanium dioxide feedstock, and developing projects related to battery materials like lithium. It is one of the biggest lithium stocks to buy right now.
In the second quarter, 29 hedge funds held positions in Rio Tinto (NYSE:RIO) and their stakes amounted to $1.3 billion. As of June 30, Fisher Asset Management is the most dominant shareholder in the company and has a position worth $1.123 billion.
Rio Tinto (NYSE:RIO) is making significant strides in the global mining sector, particularly in the field of critical minerals and large-scale projects. As one of the largest iron ore producers worldwide, the company is also expanding its footprint in the lithium market, driven by the growing demand for EV batteries and energy storage solutions.
The company is taking a deliberate approach to becoming a major player in the lithium industry. Instead of pursuing large-scale acquisitions, it is focusing on developing its own lithium resources and improving extraction technologies. This method aligns with the vision of Rio Tinto’s CEO, Jakob Stausholm, who believes that the global demand for battery capacity will drive the need for more lithium, not only for EVs but also for stationary batteries.
In line with this vision, the company has invested heavily in the Rincon lithium project in Argentina, a key part of the lithium-rich “lithium triangle” that spans Argentina, Bolivia, and Chile. Acquired for $825 million in 2022, the project is set to include a battery-grade lithium carbonate plant with an initial capacity of 3,000 tonnes per year.
The company plans to invest an additional $350 million in the project, with production anticipated to begin by the end of 2024. The investment positions it to capitalize on the high demand for lithium in the future.
In addition to its lithium ventures, Rio Tinto (NYSE:RIO) is gearing up for a major development in West Africa. The Simandou project in Guinea, a $20 billion project, aims to extract iron ore from the world’s largest untapped high-grade reserve.
After a nearly 27-year delay, the project is now moving forward with several partners, including the Guinean Government and several Chinese companies. The first shipment of ore is projected for 2025, with a goal of reaching full production of 60 million tonnes per year by 2028. This output would represent around 5% of the global seaborne iron ore market.
Furthermore, the company is involved in Serbia through its Jadar project, where the government has reinstated a spatial plan for a lithium mine and processing plant. Despite previous setbacks due to public protests, the project is expected to contribute significantly to the local economy, creating about 1,000 long-term jobs and generating substantial revenue from lithium production. If it is developed, the $2.4 billion Jadar lithium project in Western Serbia has the potential to meet 90% of Europe’s current lithium demand and position the company as a top lithium producer.
3. EnerSys (NYSE:ENS)
Market Capitalization as of September 5: $3.876 billion
Number of Hedge Fund Holders: 30
One of the biggest lithium stocks, EnerSys (NYSE:ENS) is a leading global provider of energy storage solutions, serving a wide range of industrial applications with its diverse portfolio. The company’s expertise is across manufacturing and distributing energy systems, motive power batteries, specialty batteries, battery chargers, and various power equipment.
It is particularly known for its contributions to telecommunications, broadband, utility industries, and critical backup power systems. A significant part of the company’s success comes from its comprehensive energy solutions, which include everything from power conversion to energy storage systems. The company’s NexSys iON lithium-ion batteries are designed for demanding industrial uses, such as material handling, and come with a sophisticated Battery Management System (BMS) that enhances safety and performance.
Meanwhile, its PowerSafe iON batteries provide crucial backup power for broadband networks, with the PowerSafe iON 36-1800 model offering up to 1800 Watts of power to sustain network operations for up to 72 hours during power outages.
The company’s acquisition of NorthStar reinforced its leadership in the premium Thin Plate Pure Lead battery market as it expanded its reach across all its business segments. The company is also making significant strides in expanding its production capabilities.
It plans to build a 4-GWh lithium-ion cell manufacturing facility in Greenville, South Carolina, with construction set to begin in early 2025 and operations anticipated to start in late 2027. The new plant will focus on producing a variety of lithium-ion cells for commercial, industrial, and defense applications, which will reduce its dependency on international suppliers.
Additionally, the company partnered with Verkor in 2023, a European battery technology firm, to explore the development of a lithium-ion battery factory in the U.S. The collaboration aims to improve both companies’ growth prospects and support the transition to clean energy with cutting-edge battery technology.
The company’s batteries have a proven track record in demanding environments, including space missions. As of February 2022, its batteries have accumulated an impressive 6.8 billion operational cell hours in space, powering missions to Earth, Mars, Venus, and even NASA’s Parker Solar Probe.
In its recent fiscal Q1 2025 earnings report, EnerSys (NYSE:ENS) delivered a non-GAAP EPS of $1.98, which surpassed expectations. It showed strong financial performance with $853 million in revenue.
On August 27, Roth MKM Chip Moore started coverage of the stock with a Buy rating and a $120 price target. The analyst cited the company’s strong position in addressing evolving power challenges and its innovative responses to trends like electrification and automation. The positive outlook highlights its potential for continued growth and its role as a key player in the energy transition.
According to our database, 30 hedge funds held stakes in EnerSys (NYSE:ENS) in the second quarter, with positions worth $430.571 million. With a position valued at $94.022 million, AQR Capital Management is the largest shareholder of the company, as of June 30.
2. Albemarle Corporation (NYSE:ALB)
Market Capitalization as of September 5: $9.038 billion
Number of Hedge Fund Holders: 32
Albemarle Corporation (NYSE:ALB), a key player in the specialty chemicals sector, is making significant strides in the lithium market, a critical component for the EV industry and energy storage solutions. The company is among our best lithium stocks to buy right now.
As one of the largest global producers of lithium compounds, the company has extensive operations that span across Western Australia, North America, and South America. The company is focused on increasing its production of lithium hydroxide and lithium carbonate, essential for manufacturing lithium-ion batteries.
By 2025, it plans to double its lithium carbonate production capacity from 5,000 to 10,000 tons per year, which is a sign of its commitment to meeting the growing demand in the battery market.
A key development for the company is the Kings Mountain lithium-spodumene mine in North Carolina. This mine is set to become a significant source of lithium-bearing spodumene concentrate, with an expected output of around 420,000 tons annually. This project is vital not only for establishing a domestic supply of lithium in the U.S., but also for supporting sustainable transportation and defense applications, further strengthening the company’s role in the lithium supply chain.
In the second quarter, 32 hedge funds had stakes in Albemarle (NYSE:ALB), with total positions worth $485 million. With 2 million shares worth $91.3 million, D E Shaw is the top investor in the company as of Q2.
The company’s partnerships with major automotive manufacturers such as Ford and BMW highlight its integral role in the EV industry. The company has committed to supplying over 100,000 metric tons of battery-grade lithium hydroxide to Ford for approximately 3 million future EV batteries over the next five years.
Similarly, its long-term agreement with BMW Group will provide battery-grade lithium hydroxide for BMW’s electric vehicles, which is evidence of the company’s integral position in the global EV market.
Although the company has faced a decline in profitability due to lower lithium prices and a slowdown in EV demand, Albemarle (NYSE:ALB) has managed to generate a positive operating cash flow of around $461 million in the first half of 2024. The demand for EVs and utility-scale energy storage is expected to remain strong, with projections indicating a 29% annual increase in U.S. lithium demand through 2030, as per Fastmarkets data.
Despite the current downturn in lithium prices, the company’s established presence and long-term expertise in the industry suggest that the company is well-positioned to navigate these fluctuations. We talked about how lithium demand can surge in the future in our article about, 10 Best Battery Stocks To Buy Now According to Short Sellers. Here is the excerpt:
“According to BP’s Energy Outlook 2024, the transition to a low-carbon energy system will require a substantial increase in the use of critical minerals, such as copper, lithium, and nickel, essential for supporting the infrastructure and assets needed for this transition… Lithium demand could grow 8 to 14 times by 2050, mainly driven by its use in EV batteries, which will account for about 80% of total lithium demand by 2050.”
Management has maintained its forecast for lithium prices to range between $12 and $15 per kilogram this year, which indicates a steady outlook amidst market volatility.
1. Tesla, Inc. (NASDAQ:TSLA)
Market Capitalization as of September 5: $673.206 billion
Number of Hedge Fund Holders: 85
Tesla, Inc. (NASDAQ:TSLA) has firmly positioned itself as a leading force in the EV and renewable energy sectors, continually pushing the boundaries of innovation and production capabilities. Known for its EVs powered by high-performance lithium-ion batteries, the company is significantly expanding its battery manufacturing capacity. It tops our list of the biggest lithium stocks to buy right now.
It is currently investing $3.6 billion in a new battery factory in Nevada, aimed at producing its larger 4680 battery cells. By mid-2023, the company had already manufactured over 50 million of these advanced cells at its Gigafactory in Texas.
This expansion is expected to meet the growing demand for its Cybertruck, which alone requires about 7 GWh of battery capacity annually. During the Q1 earnings call, the company’s Vice President of Vehicle Engineering, Lars Moravy, noted that the production of 4680 batteries has increased by 18% to 20% from the previous quarter, and this upward trend is expected to continue.
Moreover, Tesla’s (NASDAQ:TSLA) focus on vertical integration is evident in its $1 billion investment in a new lithium refinery in Texas. The refinery is designed to produce battery-grade lithium hydroxide using a novel, acid-free process that avoids hazardous chemicals. The refinery will process various lithium feedstocks, including recycled batteries, and is expected to have a production capacity of 50 GWh of battery-grade lithium per year. Elon Musk has referred to this facility as a “money-printing machine,” which highlights its expected impact on the company’s battery supply chain and cost structure.
In addition to its advances in battery production, the company continues to make strides in autonomous vehicle technology and other sectors. Morgan Stanley has expressed optimism about the long-term potential of autonomous vehicles to revolutionize transportation networks. Despite cautioning investors to manage expectations in the short term, the firm sees the company as its “Top Pick” in the U.S. auto industry.
The firm mentioned that the company is focused on improving its core auto business. It is also expanding into stationary energy, computing infrastructure, and robotics, integrating artificial intelligence into various aspects of its operations. The firm maintained an Overweight rating on the stock with a $310 price target.
As of the second quarter, 85 hedge funds tracked by Insider Monkey had stakes in Tesla (NASDAQ:TSLA), with positions worth $5 billion. Catherine D. Wood’s ARK Investment Management emerged as the company’s largest shareholder as it owns a $1.05 billion stake in the stock, as of June 30.
Baron Partners Fund stated the following regarding Tesla, Inc. (NASDAQ:TSLA) in its Q2 2024 investor letter:
“Tesla, Inc. (NASDAQ:TSLA) manufactures electric vehicles, related software and components, and solar and energy storage products. The stock contributed as Tesla continued to drive vehicle manufacturing costs lower, accelerate the launch of new models, and invest heavily in its lucrative AI initiatives. Shareholders reaffirmed the CEO’s compensation plan, alleviating personnel and legal uncertainties. Despite material operational complexities resulting in significant shutdowns of key manufacturing facilities and lower sales volume, Tesla presented better-than-expected margins in the quarter. It expects to launch a lower cost model as soon as late 2024, which should result in accelerated revenue growth, reduced manufacturing costs, and increased factory utilization. The company continued to advance its autonomous driving capabilities, expanding its already significant data centers and developing its humanoid robot Optimus. These investments increased confidence in the attractive growth opportunities that remain ahead.”
While we acknowledge the potential of Tesla, Inc. (NASDAQ:TSLA) to grow, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter timeframe. If you are looking for an AI stock that is more promising than NVIDIA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
Read Next: $30 Trillion Opportunity: 15 Best Humanoid Robot Stocks to Buy According to Morgan Stanley and Jim Cramer Says NVIDIA ‘Has Become A Wasteland’.
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