In this article, we will be looking into 10 Best Battery Stocks To Buy According To Analysts.
The battery industry has entered a new phase. This is the title of a new report by the International Energy Agency (IEA). It is a huge claim, yes, and IEA has the data to back it up. Actually, the report presents four reasons to explain their position.
Firstly, the industry is advancing quickly, with global demand for batteries surpassing one terawatt-hour (TWh) in 2024. Secondly, batteries are now cheaper than ever before. The average price of a battery pack for electric vehicles (EVs) is now less than $100 per kilowatt-hour (kWh), making EVs more competitive with conventional vehicles. Thirdly, China is the undisputed leader of the global battery industry. Chinese battery manufacturers are responsible for three-quarters of the global production. And lastly, the battery industry is moving towards standardization. That means that any company aiming at competitiveness must ensure it achieves economies of scale, enters strategic supply chain partnerships, and prioritizes manufacturing efficiency.
READ ALSO: 12 Best NYSE Penny Stocks to Buy According to Analysts and 10 Best Semiconductor Penny Stocks To Invest In Right Now.
For a long time, EVs have been the biggest growth driver in the battery industry. That hasn’t changed. However, falling lithium prices might take over as the new key growth driver in the industry. In fact, the latest data from Shanghai Metals Market (SMM), a global metals information provider, shows that battery-grade lithium carbonate prices have fallen consistently (and sharply) over the past month—one metric ton sold for slightly above $9,300 on February 10, 2025, but the current price (March 7, 2025) is at $9,142. Trading Economics’ data shows that lithium prices have fallen by about 31% year to date.
Lithium carbonate is a product of a rare mineral called spodumene. This mineral consists of lithium aluminum inosilicate (LiAl(SiO3)2), which battery companies process to extract lithium. Interestingly, spodumene prices fell more than 80% between March 2023 and March 2024, and this trend continues to this day. According to SMM, the spot price of the Australian spodumene concentrates declined from an average of $885 to $870 per ton in the one month to March 7, 2025. The same mineral sold for around $2,740 per ton in March 2024.
This feels like the best time to be a battery company. On the one hand, EV sales are relentlessly chipping away at the dominance of internal combustion engine (ICE) vehicles. In fact, the combined market share of petrol and diesel cars in Europe declined to 39.4% in January 2025 compared to 48.7% a year ago. This implies that EV sales in one of the world’s most important car markets are picking up quite well. On the other hand, the prices of critical minerals are falling rapidly. And what does this mean for investors? The potential return on investment has gone up.
A technician in a laboratory, working with components of the Eos Znyth DC battery system.
Our Methodology
To create this list, we analyzed U.S.-listed stock holdings from various sector-specific ETFs, including the Global X Lithium & Battery Tech ETF and Amplify Lithium & Battery Technology ETF. We ranked these stocks based on their upside potential according to analysts’ consensus price targets. For our final selection, we prioritized companies with the highest projected upside potential while also considering institutional interest, particularly the number of hedge funds that hold stakes in these companies, as of Q4 2024.
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).
10 Best Battery Stocks To Buy According To Analysts
10. Energizer Holdings, Inc. (NYSE:ENR)
Analyst Upside Potential as of March 10: 30.19%
Number of Hedge Fund Holders In Q4 2024: 26
Energizer Holdings, Inc. (NYSE:ENR) is one of the most recognizable battery brands in the world. The company has been making batteries and other household products since 1896, during which the brand name has become part of the global vocabulary when talking about batteries.
Energizer Holdings, Inc. (NYSE:ENR) recently delivered strong financial results for the first quarter of fiscal 2025. Net sales grew by 2.1% to $731.7 million compared to the same period in the previous year. Even more impressive was the company’s organic net sales growth of 3.8%, with growth across both its battery and auto care segments.
In the past few years, the company has expanded its distribution, and the latest financial data indicates that the move was successful. In particular, the battery segment was able to drive volume increases by about 3.8%. Another initiative that has been executed recently is Project Momentum. According to the company, the initiative delivered approximately $16 million in cost savings during the quarter. This helped improve the adjusted gross margin to 40.0%, up 50 basis points compared to the prior year. The earnings improvement translated to a 14% increase in adjusted earnings per share, reaching $0.67 compared to $0.59 in the prior year period.
Improved margins aside, Energizer Holdings, Inc. (NYSE:ENR) recently approved $0.30 per share in dividend payments. No wonder 26 hedge funds are invested in the stock, and analysts project a 30.19% upside from the current price.
9. Rio Tinto plc. (NYSE:RIO)
Analysts Upside Potential as of March 10: 31.86%
Number of Hedge Fund Holders In Q4 2024: 39
The UK mining giant Rio Tinto plc. (NYSE:RIO) stands head over shoulders above many in the mining industry. In operation since 1873, the company has diversified its portfolio over the years to include copper, lithium, iron ore, aluminum, and other minerals essential for the global energy transition. The company has significantly expanded its presence in the battery materials space, particularly through acquisitions and investments in lithium production.
The corporation recently completed the acquisition of Arcadium Lithium for $6.7 billion, establishing itself as a major player in lithium production. This transaction gives Rio Tinto plc. (NYSE:RIO) control of one of the world’s largest lithium resource bases. Through the newly formed Rio Tinto Lithium division, which also includes the Rincon lithium project, the company aims to grow its lithium production capacity to over 200 thousand tons per year by 2028.
Rio Tinto plc. (NYSE:RIO) continues to invest in its core businesses as well, recently announcing a $1.8 billion outlay to develop the Brockman Syncline 1 mine project in Western Australia. This project will extend the life of its Brockman hub and maintain the company’s position as a leading iron ore producer. Despite recent operational challenges from tropical cyclones affecting its East Intercourse Island facility at Dampier Port, the company has resumed operations.
The sheer size of the company, its colorful history, its operational strength, and its financial health could be the reasons this is only one of the two stocks in our list whose prices are in the green year to date. Analysts project a 31.86% upside potential, and 39 institutional investors believe in the stock, which is why the company is on our list of the 10 best battery stocks to buy.
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