We recently published a list of 12 Best Battery Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Chevron Corporation (NYSE:CVX) stands against other best battery stocks to buy according to billionaires.
Batteries are essential to our global energy landscape, especially nowadays, as they contribute heavily in accomplishing clean energy goals. These batteries power numerous electric vehicles (EVs) in the transport sector; on the other hand, they play a crucial role in the power sector, where energy storage is growing faster than any other clean technology, supporting the renewable energy shift.
Furthermore, the global battery industry is facing rapid growth due to lower costs and higher demand. A critical point was reached when prices of battery packs for battery electric vehicles (BEVs) dropped below $100 per kilowatt-hour. As a result of this cost-competitiveness, these batteries became highly demanded for internal combustion engine (ICE) cars. Thus, according to The Business Research Company, the EV battery market is expected to jump from $66.43 billion in 2024 to $87.78 billion in 2025, showing a 32.1% yearly growth rate.
This growth majorly stems from decreasing battery mineral costs, especially lithium. The World Economic Forum reported that lithium-ion battery costs have dropped over 90% in the past decade, with a 40% drop in 2024 alone. The IEA points out that a rise in manufacturing and improved production methods drove the market, with global battery production hitting 3 TWh in 2024. Accordingly, this has sped up EV adoption, with S&P Global Mobility forecasting 15.1 million battery electric vehicle sales in 2025. These sales would be 30% higher than the 2024 level and would make up 16.7% of global light vehicle sales.
Moving on to China, which is a lead battery producer, we see that it makes up 75% of the total global production, as reported by Reuters. China’s vertically integrated supply chain, from refining minerals to producing batteries, has allowed manufacturers to scale up efficiently and reduce costs. Furthermore, Chinese companies pioneered the shift to lithium-iron-phosphate (LFP) batteries, currently making up nearly half of the global EV market. These batteries cost about 30% less than lithium nickel cobalt manganese oxide (NMC) substitutes while offering similar performance.
On the other hand, the U.S. energy storage industry faces challenges as new tariffs on Chinese battery parts increase costs. With lithium battery tariffs set to reach 25% by 2026, along with other rising import duties, project costs are climbing. Thus, Wood Mackenzie predicts slower storage installations, with yearly growth dropping to 10% between 2025-2028, down from 25% in 2024. As a result, lithium demand is likely to be affected, adding uncertainty to battery prices globally.
Besides lithium batteries, hydrogen is emerging as another clean energy alternative. KPMG reported rising investment in fuel cell technology, establishing hydrogen as a long-term player in clean energy. A 2024 IDTechEx report estimated that only 4% of zero-emission vehicles (ZEVs) will use hydrogen in the next two decades. However, at the same time, it predicts that about 19% of zero-emission trucks could be hydrogen-powered by 2044. According to KPMG’s Fuels of the Future study, electric batteries remain the leading low-carbon technology, preferred by 48% of experts. Yet 16% of experts note the potential of hydrogen fuel cells as a comparable alternative.
Therefore, we can see that the battery market is shifting rapidly as costs drop, technology improves, and market competition intensifies. Falling lithium prices and economies of scale drive further growth, while hydrogen’s increasing adoption points to a multi-technology energy future. Considering this momentum of electrification, battery stocks offer strong investment potential in the evolving clean energy market.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the 12 Best Battery Stocks to Buy According to Billionaires. We selected the top 12 stocks based on the number of billionaire investors as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks.
Why are we interested in 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
A tanker truck making its way through a refinery facility. .
Chevron Corporation (NYSE:CVX)
Number of Billionaire Investors: 14
Chevron Corporation (NYSE:CVX) is a top integrated energy company that explores, produces, refines, and markets oil and gas. The company is simultaneously expanding into lower-carbon solutions such as hydrogen and carbon capture. Its current hydrogen production reaches about 1 million tons yearly through traditional operations.
For Q4 ended December 2024, Chevron Corporation (NYSE:CVX) reported earnings of $3.2 billion ($1.84 per share). Adjusted earnings hit $3.6 billion ($2.06 per share), falling short of the expected $2.42 per share. Despite this, cash flow remained strong, funding $27 billion in shareholder returns via dividends and buybacks in 2024. While upstream earnings suffered from asset retirement obligation changes and inventory impacts, downstream earnings weakened due to below-par refining and chemical margins. The company kept its capital efficiency with an organic CapEx of $16 billion and inorganic CapEx of $530 million, maintaining a 10% net debt ratio.
Furthermore, Chevron Corporation (NYSE:CVX) advanced its hydrogen initiatives with the Lost Hills Hydrogen Project in California, its first commercial hydrogen facility. This project will use solar power and non-potable water for hydrogen production, boosting its low-carbon energy efforts. The company is also preparing for Utah’s ACES green hydrogen project, one of the world’s largest hydrogen storage ventures. It will use over 200 megawatts of electrolyzer capacity to produce and store hydrogen for power generation.
Looking ahead, Chevron Corporation (NYSE:CVX) expects stable production in 2025, backed by Permian Basin growth and LNG projects. The company is focusing on capital discipline with a $16 billion CapEx target, emphasizing hydrogen, carbon capture, and renewable fuels. Despite shifting market trends, the company remains one of the best battery stocks to look for.
Overall, CVX ranks 4th on our list of best battery stocks to buy according to billionaires. While we acknowledge the potential of CVX, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than CVX but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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Disclosure: None. This article is originally published at Insider Monkey.
