11 Most Promising EV Battery Stocks According to Analysts

3. Sigma Lithium Corporation (NASDAQ:SGML)

Average Analyst Price Target Upside as of September 12: 115.55%

Number of Hedge Fund Holders: 20

Sigma Lithium Corporation (NASDAQ:SGML) is a major player in the lithium industry, primarily focused on developing lithium resources in Brazil. It owns several properties in Minas Gerais, spanning around 185 square kilometers. The company has integrated strong ESG principles, achieving Net Zero in 2023, and focuses on environmental protection and community engagement. It is one of the most promising EV battery stocks to buy.

In the second quarter, the company strengthened its market position by increasing sales volumes and achieving prices 10% higher than its competitors. Sigma Lithium (NASDAQ:SGML) achieved notable operational and financial success in Q2, even with tough conditions in the lithium market.

The company ramped up its production to 22,000 tonnes every 30 to 35 days during the quarter, which proved its reliability as a supplier. The consistent performance helped the company secure favorable credit terms linked to exports. By being assertive in its sales approach, it was able to charge the higher prices discussed above, which shows its strong market position.

For the future, Sigma Lithium’s (NASDAQ:SGML) management discussed its strategic plan to expand production capacity to 100,000 tonnes of lithium carbonate equivalent (LCE) by 2026, at its latest earnings call. The company is executing this growth through a disciplined approach, focusing on one production line at a time.

The company plans to produce about 80,000 tonnes of LCE, or 520,000 tonnes of lithium concentrate, by next year. After reaching this goal, it will start building a third production line with a capacity of 250,000 tonnes of LCE.

In the second quarter, Sigma Lithium’s (NASDAQ:SGML) shares were held by 20 hedge funds with positions worth $89.137 million. Appian Way Asset Management is the company’s most significant shareholder with 2.6 million shares, worth $31.3 million, as of Q2.

Analysts are also quite bullish on the company as all four analysts that have covered the stock recently maintain a Buy-equivalent rating on the stock. The median price target of  $22.03 shows an upside of 115.55% to the company’s stock price as of September 12.