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.
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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.
10) Microvast Holdings, Inc. (NASDAQ:MVST)
Number of Hedge Fund Holders: 7
Microvast Holdings, Inc. (NASDAQ:MVST) offers battery technologies for EVs and energy storage solutions. The company announced a significant milestone in the development of its True All-Solid-State Battery (ASSB) technology. The advancement demonstrates a key step forward in improving safety, energy density, and efficiency for critical applications like data center backup power systems and electric school buses, while also making the way for future innovations in robotics and several other high-demand sectors including EVs. Unlike conventional lithium-ion or semi-solid-state batteries, Microvast Holdings, Inc. (NASDAQ:MVST)’s ASSB uses a bipolar stacking architecture that enables internal series connections in a single battery cell.
Moving forward, the company’s growth prospects are expected to stem from its expansion into the EU market and reduction in the previous reliance on China. Furthermore, Microvast Holdings, Inc. (NASDAQ:MVST) continues to focus on bolstering its revenue streams via continued strategic partner expansions, and innovating products and services supporting the global energy transformation. Also, it continues to target sustained profitability via its regional efficiency improvements and leveraging its established business segments to fuel liquidity and improve financial strength.
For 2024, Microvast Holdings, Inc. (NASDAQ:MVST) anticipates 15% – 18% revenue growth YoY and gross margins of between 25% – 30%, aided by innovations in solid-state batteries and silicon-based cells.
9) Solid Power, Inc. (NASDAQ:SLDP)
Number of Hedge Fund Holders: 12
Solid Power, Inc. (NASDAQ:SLDP) develops solid-state battery technologies for EVs and other markets in the United States. Chris Pierce from Needham reiterated the “Buy” rating on the company’s stock, given Solid Power, Inc. (NASDAQ:SLDP)’s strategic positioning and financial stability. As per the analyst, the company possesses strong potential in the all-solid-state batteries space, primarily in the EV. This stems from the advantages such batteries provide, including improved range and safety.
Solid Power, Inc. (NASDAQ:SLDP) enjoys a unique position, given the strong relationships with original equipment manufacturers (OEMs). This enables it to leverage both battery cell designs and electrolyte solution sales. Furthermore, the company has a strong foundation to sustain operations until 2028 at the current expenditure rate. Therefore, these factors highlight Solid Power, Inc. (NASDAQ:SLDP)’s growth potential and stability in the evolving battery market.
The US Department of Energy has selected the company for up to $50 million award negotiation for continuous production of sulfide-based solid electrolyte materials for advanced all-solid-state batteries. Solid Power, Inc. (NASDAQ:SLDP) remains focused on expanding electrolyte capabilities and available market via increased production and a robust sampling program. Also, it plans to strengthen its Korean presence and embed itself into the Korean battery ecosystem.
8) Sigma Lithium Corporation (NASDAQ:SGML)
Number of Hedge Fund Holders: 16
Sigma Lithium Corporation (NASDAQ:SGML) is a leading global lithium producer, which focuses on offering carbon-neutral, sustainable lithium concentrate for EV batteries. Bank of America Securities analyst Steve Byrne reiterated a “Buy” rating on the company’s shares, setting a price target of $16.00. The analyst’s rating stems from a combination of factors such as the constructive medium- to long-term outlook for lithium pricing, even though there have been some short-term adjustments.
As per the analyst, despite oversupply resulting in lowered price recovery expectations in 2025, the strong growth in EV production and expected costlier incremental production support a positive future for the broader lithium prices, benefiting Sigma Lithium Corporation (NASDAQ:SGML). With the increased EV adoption, global lithium prices are anticipated to increase. Therefore, Sigma Lithium Corporation (NASDAQ:SGML) can benefit from this sustained long-term demand.
Despite volatile lithium prices, long-term expectations are positive as a result of higher EV penetration and supply chain constraints. Sigma Lithium Corporation (NASDAQ:SGML)’s cost-efficient operations are expected to enable it to remain profitable even during a challenging environment for lithium prices. The company significantly exceeded its Q4 2024 target with the production of ~75,000 tonnes and achieving a total of ~240,000 tonnes in production and sales volumes for the year. Given its strong operational performance and commitment to sustainable growth, Sigma Lithium Corporation (NASDAQ:SGML) is well-placed to exceed its 2025 production target of 270,000 tonnes.
7) Toyota Motor Corporation (NYSE:TM)
Number of Hedge Fund Holders: 18
Toyota Motor Corporation (NYSE:TM) is engaged in designing, manufacturing, assembling, and selling passenger vehicles, minivans, and commercial vehicles. In early March 2024, the company agreed with Panasonic Holdings Corporation to make Primearth EV Energy Co., Ltd. a wholly owned subsidiary to strengthen its capabilities in mass-producing automotive batteries. It also decided to change the company name to TOYOTA BATTERY Co., Ltd. Toyota Motor Corporation (NYSE:TM) expects that it can manufacture next-generation solid-state batteries at the same rate as current batteries for EVs, demonstrating a strong move in the global competition to commercialize the technology. Furthermore, Fortune Business Insights mentioned the company’s plans to spend US$13.5 billion to develop electric vehicle battery technology by 2030.
It also highlighted that it is targeting to launch EVs with solid-state batteries as early as 2030. The company announced that Toyota Engineering & Manufacturing North America, Inc. (TEMA), inclusive of Toyota Motor North America (TMNA) R&D, was selected to get $4.5 million in funding from the US Department of Energy, Advanced Research Projects Agency-Energy (ARPA-E). The funding forms part of the Catalyzing Innovative Research for Circular Use of Long-lived Advanced Rechargeables (CIRCULAR) Program, which emphasizes supporting a circular domestic supply chain for electric vehicle (EV) batteries.
Furthermore, strategic investments in solid-state battery technology are expected to provide the company with a major competitive advantage by providing longer range and faster charging times. By 2030, Toyota Motor Corporation (NYSE:TM) plans to offer at least 30 BEV models and anticipates selling ~3.5 million BEVs a year globally. In Europe, the company’s BEV line-up is expected to expand to 10 models by 2025. Through the introduction of cost-effective models, Toyota Motor Corporation (NYSE:TM) can tap into the mass market, further enhancing its sales volume and profitability.
6) QuantumScape Corporation (NYSE:QS)
Number of Hedge Fund Holders: 22
QuantumScape Corporation (NYSE:QS) is the R&D stage company, which focuses on the development and commercialization of solid-state lithium-metal batteries for EVs and other applications. Its technology makes it stand apart from traditional lithium-ion batteries, using an innovative anode-free design. This design provides several key advantages, such as the potential for significantly increased energy density, faster charging speeds, and improvement in safety features. Raptor, the first implementation of the disruptively fast separator production process, forms part of QuantumScape Corporation (NYSE:QS)’s baseline production process.
Raptor reflects a significant improvement from the company’s last-generation technology in film quality and performance, heat-treatment time, and energy consumption. QuantumScape Corporation (NYSE:QS) expects that Raptor will continue to support its QSE-5 sample output into 2025. Next, the company announced that the next-generation heat treatment equipment for its separator production process, Cobra, is now developed, delivered, installed, and released for initial separator processing.
This places QuantumScape Corporation (NYSE:QS) on track to deliver higher-volume samples of its first planned commercial product, QSE-5, in 2025, and forms a major step towards the commercialization of solid-state batteries for EVs. The broader EV industry continues to transition towards higher-performance batteries to address challenges related to range, charging time and safety of conventional lithium-ion batteries. With automakers seeking battery solutions, QuantumScape Corporation (NYSE:QS)’s QSE-5 cells are expected to see traction from well-established EV manufacturers.
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.
4) Albemarle Corporation (NYSE:ALB)
Number of Hedge Fund Holders: 35
Albemarle Corporation (NYSE:ALB) is a critical player in the EV battery industry, mainly through its significant involvement in lithium production and supply. Truist initiated coverage of the company’s shares, providing a “Hold” rating and a price target of $96. As per the firm, Albemarle Corporation (NYSE:ALB)’s scale and relatively low-cost production footprint place it well for the long term to capitalize on growth potential in the broader lithium market.
Elsewhere, Morningstar expects that lithium demand will continue to grow at a double-digit pace each year as a result of increasing global EV sales and the buildout of utility-scale batteries. As supply growth slows, the firm expects demand to outpace supply, resulting in higher prices in 2025. As a low-cost lithium producer, it expects Albemarle Corporation (NYSE:ALB) to get through the pricing downturn and be well-positioned to benefit from higher long-term prices. The company’s strong and durable cost advantage in lithium and bromine production is expected to continue to act as a competitive advantage.
Morningstar further added that Albemarle Corporation (NYSE:ALB) possesses a cost advantage in lithium carbonate production because of its lucrative brine assets in the Salar de Atacama in Chile, which produces lithium at the lowest cost on a global basis, excluding royalties. Morningstar expects lithium prices to rebound and stay well above the marginal cost of production through at least the remainder of the decade. This will lead to excess profits and return on invested capital for Albemarle Corporation (NYSE:ALB).
3) Ford Motor Company (NYSE:F)
Number of Hedge Fund Holders: 36
Ford Motor Company (NYSE:F) is a critical contender in the EV battery space. The company is building a battery plant in Marshall, Michigan, and is also planning to license CATL technology in a bid to produce low-cost lithium-iron batteries at the facility. Producing the batteries in-house is expected to reduce dependency on external suppliers, which will ensure stable supply and lower costs, boosting EV profitability. Also, a dedicated LFP battery supply will help the company introduce lower-cost EV models.
Ford Motor Company (NYSE:F)’s approach to electrification remains multifaceted, providing a mix of hybrids, extended-range electric vehicles, and battery electric vehicles. This strategy enables the company to cater to a wide range of consumer needs while, at the same time, transitioning its lineup. Ford Motor Company (NYSE:F)’s battery business is expected to be aided by its investments in R&D of solid-state batteries, which provide higher energy densities, faster charging and improved safety as compared to traditional lithium-ion batteries. Its strong brand recognition, mainly in trucks and commercial vehicles, is expected to act as a significant advantage, with the industry transitioning to electric and connected vehicles.
2) General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 64
General Motors Company (NYSE:GM) is a leading player in the EV battery business with the help of vertical integration, JVs, and next-gen battery technology development. Ultium Cells is a JV between General Motors Company (NYSE:GM) and LG Energy Solution which produces battery cells for EVs. General Motors Company (NYSE:GM) has signed a multi-year, multi-billion dollar agreement with Norway’s Vianode to provide the automaker with synthetic graphite anode materials for its EV batteries. This partnership is expected to enhance General Motors Company (NYSE:GM)’s supply chain stability, advance battery technology and reinforce its leadership in the broader EV industry.
General Motors Company (NYSE:GM) was able to grow its market share in Q4 2024 and it distanced itself from the broader industry’s pricing incentives and inventory pressures. Strong growth is expected in its battery business because of strategic investments in EVs, battery technologies and energy solutions. The company’s Ultium platform remains critical to its battery strategy. Furthermore, electric trucks and SUV sales are projected to increase, mainly in the US and China, which can create demand for significant amount of battery production capacity.
Hotchkis & Wiley Funds, an investment management company, released its Q3 2024 investor letter. Here is what the fund said:
“General Motors Company (NYSE:GM) is one of the world’s largest manufacturers of passenger vehicles. GM reported a strong Q2; however, management provided a cautious outlook for the second half of 2024. Comments from GM mirrored those of other OEMs and auto suppliers, leading investors to believe the automotive cycle has peaked. We believe this is an overreaction, and we continue to view GM as an attractive investment. We like GM for many reasons. First, we believe GM has leading market positions in its main business segments. Second, the valuation is extremely attractive. Finally, it is a strong free cash flow generator, and the management team is committed to repurchasing their undervalued shares.”
1) Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 99
Tesla, Inc. (NASDAQ:TSLA) is involved in the EV battery business throughout multiple areas – from in-house battery production to raw material sourcing, recycling and energy storage solutions. The company’s vertical integration goes over and above manufacturing, and includes R&D, allowing it to maintain a competitive advantage. Its intangible assets and cost advantage are expected to act as key competitive advantages. Tesla, Inc. (NASDAQ:TSLA) is facing constraints in battery production and it continues to actively work to increase total gigawatt hours of battery production in 2025.
The outlook for the company’s battery business is optimistic, courtesy of its focus on innovation, production scaling, and expanding demand for EVs and energy storage solutions. Tesla, Inc. (NASDAQ:TSLA) is expected to see strong growth in battery sales as it powers the dynamic fleet of EVs, including Model 3, Model Y, Cybertruck and Semi. The company’s 4680 battery cell production can act as a critical growth driver for battery growth. These cells are anticipated to reduce production costs and increase vehicle range and charging speed.
In 2024, Tesla, Inc. (NASDAQ:TSLA) made significant investments in infrastructure, which can fuel the next wave of growth. These include vehicle manufacturing capabilities for new models, AI training compute, and energy storage manufacturing capacity. With the acceleration of EV adoption, the company is well-placed to benefit from increased demand, cost improvements, and new revenue lines which are associated with its leadership in battery technology and manufacturing. Tsai Capital, an investment management company, released its Q4 investor letter. Here is what the fund said:
“Tesla, Inc. (NASDAQ:TSLA) (TSLA—Year of First Purchase: 2020) We’ve owned Tesla since February 2020 and initially paid an average of about $41.66 per share5 . Tesla is a leading AI company that has formidable competitive advantages across various sectors, including electric vehicles, software, and energy storage.
A true outlier, Tesla operates in an entirely unconventional way, often creating market confusion and attracting criticism from short sellers and from those who mistake the company for what it is fundamentally not—a traditional car manufacturer.
Under the visionary leadership of Elon Musk, Tesla has adopted a scale-economies-shared business model, deliberately lowering prices, enhancing the customer value proposition, driving adoption, and expanding the total addressable market…” (Click here to read the full text)
While we acknowledge the potential of TSLA as an investment, our conviction lies in the belief that some deeply undervalued AI stocks hold greater promise for delivering higher returns, and doing so within a shorter timeframe. If you are looking for a deeply undervalued AI stock that is more promising than TSLA but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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