12 Best EV Battery Stocks to Buy in 2025

5) Stellantis N.V. (NYSE:STLA)

Number of Hedge Fund Holders: 24

Stellantis N.V. (NYSE:STLA) continues to expand its EV battery business as a part of its pivot towards electrification. LG Energy Solution Ltd. highlighted that its JV (NextStar Energy Inc.) in Canada with multinational automaker Stellantis N.V. (NYSE:STLA) has started mass production of modules to expand businesses in North America. Notably, NextStar Energy is Canada’s first EV battery manufacturing plant and is expected to accelerate innovation in the North American EV industry.

Citi believes that Stellantis N.V. (NYSE:STLA)’s strong US market exposure can result in early 2025 gains, despite uncertainties regarding earnings and FCF recovery. Furthermore, the firm believes that its earnings might benefit from easier comparisons in H2 2024. The company’s unique approach to the Chinese market via its JV with Leapmotor can also provide significant competitive advantages. By partnering with a rising Chinese EV brand, Stellantis N.V. (NYSE:STLA) has access to China’s advanced EV and battery production capabilities without the full challenges related to direct market participation.

Also, Stellantis N.V. (NYSE:STLA) and CATL have formed a JV to invest up to €4.1 billion ($4.3 bn) for constructing a large-scale lithium iron phosphate (LFP) battery plant in Spain. Targeted to begin production by 2026 end, the facility is expected to have capacity of up to 50 GWh. The decision is expected to help Stellantis N.V. (NYSE:STLA) as it diversifies the battery chemistry utilized for its EVs. Notably, LFP battery chemistry is often utilized in lower-cost EV models, which can help reduce the overall cost of EV production.