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 Sigma Lithium Corporation (NASDAQ:SGML) 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 mining truck hoding a payload of mineral ore, a visual representation of the companies resources.
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.
Overall, SGML ranks 8th on our list of best EV battery stocks to buy in 2025. While we acknowledge the potential of SGML 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 SGML 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.
