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 Shell plc (NYSE:SHEL) 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 gas refinery lit up against the night sky, showing the scale of the company’s petrochemical operations.
Shell plc (NYSE:SHEL)
Number of Billionaire Investors: 14
Shell plc (NYSE:SHEL) is a leading company dealing with energy and petrochemicals across Europe, Asia, Oceania, Africa, and the Americas. Its portfolio covers oil and gas exploration, refining, LNG trading, and low-carbon solutions like hydrogen and EV charging. The company is working on building Holland Hydrogen 1, a 200-megawatt facility, set to produce 80 tons of hydrogen daily from 2025 onwards.
Shell plc (NYSE:SHEL) reported a decrease in earnings for Q4 ended December 31, 2024, due to weaker margins in crude, LNG trading, and marketing, plus higher exploration write-offs. Shareholder-attributable income included a $2.2 billion net impairment charge and a $2.8 billion net loss from asset sales. Adjusted earnings reached $3.7 billion, with operating cash flow at $13.2 billion, boosted by $2.4 billion in working capital inflows. This translated into a yearly operating cash flow of $54.7 billion and a free cash flow of $39.5 billion, which demonstrates the company’s robust financial health.
Despite the challenging market, Shell plc (NYSE:SHEL) maintained robust shareholder returns of $22.6 billion in 2024—41% of operational cash flow. Furthermore, the company increased quarterly dividends by 4% to $0.358 per share and initiated a $3.5 billion buyback program. Shell also achieved $3.1 billion in cost cuts, meeting its 2023 Capital Markets Day targets early.
Shell advanced its key projects, starting off production at Whale in the Gulf of Mexico and Mero-3 FPSO in Brazil. It also formed the UK North Sea’s largest independent oil producer with Equinor, while finalizing the investment decision for Nigeria’s Bonga North deepwater project at the same time.
Shell plc (NYSE:SHEL) expects lower capital expenditure in 2025. While LNG liquefaction is projected at 6.6-7.2 million tons, Integrated Gas production should range from 1,750-1,950 thousand boe/d in 2025. Driven by hydrogen production and growing demand in the EV market, the company has established itself as one of the best battery stocks.
Overall, SHEL ranks 5th on our list of best battery stocks to buy according to billionaires. While we acknowledge the potential of SHEL, 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 SHEL 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 30 Best Stocks to Buy Now According to Billionaires
Disclosure: None. This article is originally published at Insider Monkey.
