In this article, we will discuss the 12 Best EV Battery Stocks to Buy in 2025.
EV Magazine highlighted that The Promoting Resilient Supply Chains Act remains critical for strengthening the EV supply chain in the US, with strong implications for domestic and international markets. The legislation addresses the increasing need for a robust and localized EV supply chain in the US, which is of utmost importance as the broader automotive industry witnesses a significant transition towards electrification.
Notably, the act encourages the localization of critical components in the EV supply chain, mainly batteries and microchips.
What’s In Store for EV Battery Prices?
S&P Global highlighted that the EV battery prices declined significantly over the past few years, primarily because of the decline in prices of critical battery metals i.e., lithium, cobalt, and nickel. For example, cobalt price has declined from ~$70,000 per metric ton in 2022 to ~$30,000 in 2024. Similarly, the lithium carbonate price has fallen from a high of ~$70,000 per metric ton to well below $15,000 in 2024. S&P Global believes that battery metal prices are expected to increase over the longer term. However, because of economy of scale and efficiency gains, the manufacturing cost is expected to be lowered. These 2 effects are expected to result in a flat price trend, demonstrating a marked difference with the exponential price reduction over the past decade.
According to Nikhil Bhandari, co-head of Asia-Pacific natural resources and clean energy research at Goldman Sachs, the global average EV battery price is expected to reach US$90 per kilowatt-hour (kWh) in 2025, demonstrating a decline from US$111 per kWh at the end of 2024. The investment bank believes that, by 2026, it might decline to US$82 per kWh. This means the prices will be ~50% lower than US$149 per kWh in 2023, bringing the cost of owning a battery car in line with the petrol cars in the US on an unsubsidized basis.
READ ALSO: 7 Best Stocks to Buy For Long-Term and 8 Cheap Jim Cramer Stocks to Invest In.
Growth Drivers for the EV Battery Market
As per Research Nester, the EV battery market size has been pegged at US$148.34 billion in 2024 and is expected to surpass US$923.08 billion by 2037 end. In 2025, the industry size of EV battery is expected to be at US$166.26 billion. The market’s growth is expected to stem from the increasing need to save oil and gas. This factor has been prompting nations throughout the world to deploy EVs. The introduction of new models in the market is expected to drive the interest of people in EVs, which will in turn drive the demand for batteries. Research Nester also added that advancement in technology is anticipated to bring opportunities for the broader market.
Amidst these positive trends, let us now have a look at the 12 Best EV Battery Stocks to Buy in 2025
A luxury electric vehicle driving in the city, its battery technology powering its progress.
Our Methodology
To list the 12 Best EV Battery Stocks to Buy in 2025, we conducted extensive research and sifted through several online rankings. Next, we chose the stocks that were popular among hedge funds. Finally, the stocks were arranged in ascending order of their hedge fund sentiments, as of Q3 2024.
At Insider Monkey we are obsessed with 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).
12 Best EV Battery Stocks to Buy in 2025
12) BYD Company Limited (OTC:BYDDY)
Number of Hedge Fund Holders: N/A
BYD Company Limited (OTC:BYDDY) is the world’s leading producer of rechargeable batteries: NiMH batteries, Lithium-ion batteries and NCM batteries. The company owns the entire supply chain layout from mineral battery cells to battery packs. Such batteries have wide applications including consumer electronics, new EVs and energy storage. Its growth trajectory continues to stem from its innovative technology, strategic partnerships, and elevated global demand for EVs, placing the company as a leader in the sustainable transportation revolution. BYD Company Limited (OTC:BYDDY) has been rapidly investing in R&D and production facilities to ensure that energy storage solutions remain at the forefront of the innovation curve and are also produced with the highest safety standards.
BYD Company Limited (OTC:BYDDY)’s proprietary Blade Battery, which is a safer and more energy-dense LFP (lithium iron phosphate) battery, continues to gain adoption globally. With LFP batteries enhancing market share over NMC batteries as a result of cost and longevity benefits, BYD Company Limited (OTC:BYDDY) is well-placed to benefit from the trend. Furthermore, the company’s vertical integration (which means producing its own chips, batteries, and EV components) provides it with a cost advantage over its competitors.
This is because BYD Company Limited (OTC:BYDDY) can sell EVs profitably at lower prices, improving market share and maintaining robust battery sales. The average price target for the company’s stock is $88.00.
11) Volkswagen AG (OTC:VWAGY)
Number of Hedge Fund Holders: N/A
Volkswagen AG (OTC:VWAGY) continues to invest in its battery production with the establishment of PowerCo. Notably, PowerCo is a global battery cell manufacturer which was founded by the Volkswagen Group in 2022. Volkswagen AG (OTC:VWAGY) produces EV batteries through this company. Citi analysts remain optimistic about Volkswagen AG (OTC:VWAGY)’s growth prospects as a result of potential government support for the European auto industry. According to German Chancellor Olaf Scholz, the European Union has been working on a proposal for EU-wide purchase incentives for EVs.
Therefore, increased government support can reduce the net cost of BEV regulation to Volkswagen AG (OTC:VWAGY), bolstering its financial outlook. Citi’s analysis showcases that such developments might provide a much-required boost to the European auto industry, and Volkswagen AG (OTC:VWAGY). Notably, European purchase incentives can fuel global competitiveness since the US is again going ahead with the protectionist course under Donald Trump. Amidst the challenging market environment, Volkswagen AG (OTC:VWAGY) delivered a total of 9 million vehicles in 2024. Considering the focus on becoming the automotive technology leader, it launched over 30 new models with numerous innovations, which also include all-electric vehicles.
Volkswagen AG (OTC:VWAGY) has partnered with QuantumScape in a bid to develop solid-state batteries, focusing on higher energy density, quicker charging times, and improved safety. This partnership can accelerate the commercialization of advanced battery technologies, placing Volkswagen AG (OTC:VWAGY) at the forefront of EV innovation.
