We recently published a list of 12 Best EV Battery Stocks to Buy in 2025. In this article, we are going to take a look at where QuantumScape Corporation (NYSE:QS) stands against other 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.
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).
A line of electric vehicles parked in front of a research & development building in San Jose, California.
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.
Overall, QS ranks 6th on our list of best EV battery stocks to buy in 2025. While we acknowledge the potential of QS 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 QS but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and Complete List of 59 AI Companies Under $2 Billion in Market Cap
Disclosure: None. This article is originally published at Insider Monkey.
