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.
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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.
8. Tesla Inc. (NASDAQ:TSLA)
Analysts Upside Potential as of March 10: 32.01%
Number of Hedge Fund Holders In Q4 2024: 126
When you talk about EVs in North America and most of Europe, you won’t fail to mention Tesla Inc. (NASDAQ:TSLA). This company may have lost some ground to others, especially in Europe and China, but it remains the one that mainstreamed EVs. The company started as a purely EV carmaker but has now diversified into energy storage and AI-driven technology.
Tesla Inc. (NASDAQ:TSLA) has been experiencing rough patches in recent years. Like QuantumScape Corp. (NYSE:QS), it did not generate any revenue in its formative years (for five years). The first instance was in 2008 when it launched its first vehicle, the Roadster. In the full year 2024, the company’s revenue reached $97.7 billion. However, that happened in the face of declining vehicle deliveries. Deliveries went down by 1% to 1.79 million units in 2024.
But different things are happening to Tesla Inc.’s (NASDAQ:TSLA) battery sector. According to the latest data, the company’s energy storage deployments reached record levels. In Q4, 11.0 GWh was deployed, and 31.4 GWh for the full year 2024, an 114% year-over-year growth. Energy generation and storage revenue more than doubled year-over-year to reach $3.1 billion in the fourth quarter.
The company continues to advance its battery technology and manufacturing capabilities. Tesla’s Lithium Refinery is now processing spodumene, with full commissioning expected this year. This will provide the company with vertical integration advantages in the battery supply chain. This explains why, despite the fact that Tesla Inc.’s (NASDAQ:TSLA) shares are down 34.96% year to date, analysts believe there is a 32.01% upside, and 126 hedge funds have the stock in their portfolio.
7. Eos Energy Enterprises, Inc. (NASDAQ:EOSE)
Analyst Upside Potential as of March 10: 35.28%
Number of Hedge Fund Holders In Q4 2024:19
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) sits atop the ladder when it comes to designing, manufacturing, and providing zinc-based long-duration energy storage (LDES) systems. This American corporation leverages the proprietary Znyth™ aqueous zinc battery technology to create an alternative to conventional lithium-ion batteries. The company claims that its batteries are safer and more scalable.
The claims aside, this firm has been making significant progress in expanding its market presence and securing major funding. The company recently revealed it had met its 2024 revised revenue guidance, reporting $15.6 million in revenue for the full year. Eos Energy Enterprises, Inc. (NASDAQ:EOSE) has also reaffirmed its 2025 revenue guidance range of $150 million to $190 million, signaling confidence in its growth trajectory. This projected growth is expected to be driven by increased production volume on the company’s first state-of-the-art manufacturing line.
Earlier this month, the company announced that it has secured an $8 million standalone battery energy storage system (BESS) order for the Naval Base of San Diego. The objective is to advance American energy independence. This order, along with other defense contracts, improves the company’s standing as one of the key players behind the push to strengthen national energy security infrastructure with American-made energy storage technology.
Eos Energy Enterprises, Inc. (NASDAQ:EOSE) is one of the few battery stocks whose shares have been in the green for the past year. In fact, the stock has returned 310.42% in the past 12 months. This is sufficient to support the company’s inclusion in our list.
6. QuantumScape Corp. (NYSE:QS)
Analysts Upside Potential as of March 10: 38.39%
Number of Hedge Fund Holders In Q4 2024: 22
QuantumScape Corp. (NYSE:QS) is a new player in the global battery scene. It was listed on the NYSE in August 2020. The San Jose, California-based company is one of the pioneers of solid-state rechargeable lithium batteries for EVs. Their main products are batteries designed to offer greater energy density, enhanced safety, and, most importantly, faster charging.
The company has made significant progress in its development journey, having shipped samples to automotive partners for testing. QuantumScape Corp. (NYSE:QS) calls the samples Alpha-2 battery, and they have advanced packaging and high-loading cathodes. The company has also deployed its “Raptor” separator heat-treatment process to improve manufacturing efficiency and has begun low-volume production of its QSE-5 cells. The cells offer an impressive 844 Wh/L energy density and fast charging capabilities of approximately 12 minutes.
Despite the developments, the company remains pre-revenue. Management revealed that no revenue was generated in Q4 2024. The firm also missed EPS by $0.01 (posted -$0.22) and registered a $114.7 million GAAP net loss for the quarter and $477.9 million for the full year 2024. This is what normally happens with startups that haven’t perfected their products yet; they’re still working on the core technology. That’s why the company’s CapEx was $11.2 million for the quarter and $62.1 million for the full year 2024.
5. Sigma Lithium Corp. (NASDAQ:SGML)
Analysts Upside Potential as of March 10: 55.79%
Number of Hedge Fund Holders In Q4 2024: 21
Brazilian conglomerate Sigma Lithium Corp. (NASDAQ:SGML) produces high-purity lithium for the EV battery supply chain. The company produces what it calls “Quintuple Zero Green Lithium” at its Grota do Cirilo property in Brazil. Other operations in Brazil include São José, Santa Clara, and Genipapo. The corporate headquarters are in São Paulo.
Sigma Lithium Corp. (NASDAQ:SGML) had the best year in 2024—it consistently exceeded production targets. At the end of the year, the company revealed that it had surpassed its fourth-quarter production target; it produced approximately 75,000 tons of Quintuple Zero Green Lithium. This strong operational performance would signal what was to come in 2025.
In late February 2025, the company said it was on track to double its production capacity this year. It had just commissioned its second Greentech industrial plant, expected to begin in Q4 2025. According to its guidance, production volumes are projected to reach 300,000 tons in 2025 and expand further to 520,000 tons in 2026. To fund this expansion, the company has secured a US$100 million development bank credit line from BNDES.
And the performance of Sigma Lithium Corp.’s (NASDAQ:SGML) share price indicates that the market is enthusiastic about what is happening. The stock has returned 4.63% year-to-date and 24.89% in the past six months (as of March 7, 2025). Analysts, too, share this enthusiasm—they project a 55.79% upside potential from the current price. The company deserves the top five spot in our list of the 10 best battery stocks to buy now.
4. Lithium Americas Corp. (NYSE:LAC)
Analysts Upside Potential as of March 10: 63.43%
Number of Hedge Fund Holders In Q4 2024: 10
Lithium Americas Corp. (NYSE:LAC) may not be the largest lithium producer in the world, but it is an important player. Although its market cap and production capacity are lower than those of giants like Albemarle Corp. (NYSE:ALB), the company’s projects in North America and Argentina are critical to the industry. Its Thacker Pass project in Nevada is considered North America’s largest known lithium resource.
And investors believe in the company’s potential. On March 5, 2025, the company announced a strategic investment of $250 million from Orion Resource Partners. The proceeds are expected to help the company fund running projects, particularly the development and construction of Phase 1 of the Thacker Pass lithium project. The investment includes $195 million in convertible notes and a $25 million Production Payment Agreement, with an additional commitment of $30 million in delayed draw notes within two years.
What makes Lithium Americas Corp. (NYSE:LAC) particularly attractive is its joint venture with General Motors Company (NYSE:GM). Part of the terms for this collaboration is that GM gets exclusive rights to Thacker Pass Phase 1 production volumes for 20 years. The partnership underscores the project’s importance to GM’s electric vehicle ambitions and ensures a steady customer for Lithium Americas’ future production. That is why analysts project a 63.43% upside potential for Lithium Americas Corp. (NYSE:LAC) shares from their current price.
3. Sunrun Inc. (NASDAQ:RUN)
Analysts Upside Potential as of March 10: 88.83%
Number of Hedge Fund Holders In Q4 2024: 38
Sunrun Inc. (NASDAQ:RUN) has established itself as the leading provider of residential solar panels, home batteries, and energy services in the United States. The corporation has helped to mainstream green energy solutions and operates on a subscription-based model. It designs, develops, installs, and maintains solar energy systems with integrated battery storage solutions for homeowners.
The company has been advancing its virtual power plant (VPP) strategy at an impressive scale. In 2024, its portfolio of VPPs successfully supported power grids across the country with a combined instantaneous peak of nearly 80 megawatts—a capacity greater than many traditional fossil-fuel power plants. More than 20,000 Sunrun Inc. (NASDAQ:RUN) customers participated in 16 virtual power plant programs across nine states and territories. In California alone, over 16,000 customers participated in the statewide CalReady program.
This initiative, as well as the company’s overall reputation for excellence, won Sunrun Inc. (NASDAQ:RUN) the 2025 Platinum Solar Award and the exclusive Preferred Partner Award by BestCompany.com. If anything, these awards are a nod to the company’s commitment to customer satisfaction, innovation, and industry leadership at a time when many competitors have struggled to maintain stability. The fact that 38 institutions believe in this stock and analysts project an 88.83% upside potential makes this company a worthy inclusion in this list.
2. Enovix Corp. (NASDAQ:ENVX)
Analysts Upside Potential as of March 10: 155.52%
Number of Hedge Fund Holders In Q4 2024: 21
Enovix Corp. (NASDAQ:ENVX) specializes in developing advanced silicon-anode lithium-ion batteries. This Silicon Valley-based firm uses proprietary 3D cell architecture to increase energy density while maintaining high cycle life. The technology positions the firm as a potential disruptor in the battery technology space.
In 2024, this company made the decision to develop battery cells tailored to the smart eyewear market. This turned out to be transformational as it helped Enovix Corp. (NASDAQ:ENVX) to post record revenues in the latest quarterly results (Q4 2024). Revenues for the quarter came in at $9.7 million, nearly reaching the high end of its guidance. Even more impressive, full-year 2024 revenues reached $23.1 million, representing a 202% increase from $7.6 million in 2023. The company also achieved its first-ever positive gross margin of 11% in the fourth quarter.
On the manufacturing front, the company has achieved a major milestone: its Malaysian facility (Fab2) has completed Site Acceptance Testing for the High-Volume Manufacturing line. This development is critical for scaling production capabilities to meet increasing demand. The company has also begun hosting numerous potential customers at the site for detailed line tours, with multiple OEMs initiating formal factory audits to support their qualification processes.
Enovix Corp. (NASDAQ:ENVX) shares are down 0.58% over the past five days (as of March 7, 2025), but the stock has returned 13.14% over the past six months. Besides, analysts believe the stock can grow by 155.52% from the current price, which puts the company in second place on our list of the 10 best battery stocks to buy.
1. Solid Power, Inc. (NASDAQ:SLDP)
Analyst Upside Potential as of March 10: 204.35%
Number of Hedge Fund Holders In Q4 2024: 13
Solid Power, Inc. (NASDAQ:SLDP) develops advanced solid-state battery technology, with a particular focus on creating sulfide-based solid electrolyte materials. The company’s primary goal is to revolutionize energy storage through all-solid-state batteries (ASSBs). This technology offers potential advantages in energy density, safety, and charging capabilities compared to traditional lithium-ion batteries.
Solid Power, Inc. (NASDAQ:SLDP) intends to license its designs or sell its solid electrolyte for use in production at other battery manufacturers. That’s why the company ensures that its technology is compatible with existing manufacturing processes, meaning its designs can potentially reach the market faster than competitors requiring entirely new production methods. This approach has attracted strategic partnerships with automotive giants, including BMW and Ford, as well as a collaboration with Korean battery manufacturer SK On.
Even better, the company received the official nod from the US government to maintain its course. Last year, the Department of Energy extended a $50 million award to Solid Power, Inc. (NASDAQ:SLDP), which, in the company’s view, was “validation of the promise sulfide-based all-solid-state batteries hold.” The funds went to enhancing the company’s ability to continue developing and expanding production capabilities. By January 2025, the company had formalized the terms of this grant, marking an important milestone in its growth strategy.
Looking ahead, the company has ambitious production targets. It plans to increase the annual electrolyte production capacity to 75 metric tons by 2026 and further expand to 140 metric tons by 2028. This growth trajectory aligns with the anticipated market demand for advanced battery materials. It will also likely persuade more investors to pile into the stock. No wonder analyst projections give the stock a 204.35% upside potential.
While we acknowledge the potential of Solid Power, Inc. (NASDAQ:SLDP) as an investment, our conviction lies in the belief that 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 SLDP but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
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