11 Most Promising EV Battery Stocks According to Analysts

9. Rio Tinto Group (NYSE:RIO)

Average Analyst Price Target Upside as of September 12: 27.18%

Number of Hedge Fund Holders: 29

Rio Tinto Group (NYSE:RIO) is a British-Australian multinational corporation, which is recognized as one of the largest mining and metals companies globally. The company continues to be a leading force in the global mining industry, contributing to various sectors, including copper, aluminum, diamonds, and most recently, lithium projects. It is our 9th most promising EV battery stock according to analysts.

Rio Tinto (NYSE:RIO) is strategically investing in its lithium capabilities by developing its own projects, especially the Rincon lithium project in Argentina, which includes a planned battery-grade lithium carbonate plant. In Serbia, the company is working to develop the Jadar lithium project, which has the potential to fulfill a substantial portion of Europe’s lithium demand.

On August 29, Bloomberg reported that Rio Tinto (NYSE:RIO) is one of the companies that have been shortlisted to develop lithium assets in Chile’s Altoandinos project. The initiative, announced by state-owned Enami, is part of a broader strategy under Chilean President Gabriel Boric to expand lithium extraction and boost output.

The Altoandinos project consists of three undeveloped salt flats, which are projected to produce 20,000 metric tons of lithium by 2032, with output expected to triple by 2037. Enami plans to finalize partner selections by March and is currently negotiating terms with the listed companies.

Apart from lithium, Rio Tinto (NYSE:RIO) is also a major producer of copper which is a key component of batteries. In the first half of the year, the company mined approximately 327 kilotonnes (kt) of copper and is on track to mine 660 to 720 kt in 2024.

Rio Tinto projects a 2% growth in copper equivalent production for the year and aims for a 3% annual increase from 2024 to 2028 through its ongoing and upcoming projects. The company expects to see more cash flow from the Oyu Tolgoi underground copper mine and additional benefits from their investments in the Simandou project and the Rincon lithium project. The Oyu Tolgoi mine has increased its copper production by 15% compared to H1 2023 and is on track to produce 500,000 tonnes of copper annually from 2028 to 2036.

9 analysts have covered Rio Tinto (NYSE:RIO) stock with an average price target of $78.75. The price target represents an upside of 27.18% to the company’s stock from September 12 levels.

In the second quarter, 29 hedge funds held positions in the company, at a combined value of nearly $1.3 billion. As of June 30, Fisher Asset Management is its largest shareholder with 17.04 million shares, worth $1.12 billion.