In this article, we will discuss the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
Although the ongoing pricing environment is challenging, the long-term outlook for lithium remains fundamentally strong. In Q1 2025, battery-grade lithium carbonate prices dropped to a low of $8,329 per metric ton (vs. $10,854 in January), the lowest since early 2021. Even a steeper drop is noticed for Lithium hydroxide, which has fallen 89% from its 2022 peak. These declines are largely attributed to the increase in global mine supply, a 22% increase in 2024 alone. Countries like China, Australia, and Argentina have ramped up their production levels.
Still, the supply-driven correction is inevitable. Global lithium consumption increased by 29% YoY in 2024, hitting an estimated 220,000 tons mark. This increased consumption is driven by the EV sector, which experienced a 35% increase in sales in Q1 2025. Meanwhile, lithium consumption in EV batteries is projected to grow 12% annually through 2030.
At the same time, the battery market is undergoing a major evolution. The automobile sector is ramping up investments in next-generation solid-state and semi-solid-state battery technologies that offer enhanced energy density, faster charging, and improved safety. Recently, it was reported that Volkswagen is pouring $260 million in funding into QuantumScape for the development of solid-state cells. A production capacity of 40 to 80 GWh per year is being targeted, which is enough to power up to one million EVs per year.
Thus, the current weakness in the lithium market presents a strategic opportunity for investors. On the other hand, the emergence of solid-state technologies promises rapid growth in the battery market. So, let’s move on to our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
Photo by Mika Baumeister on Unsplash
Methodology
To curate our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds, we used Finviz screener to extract stocks engaged in lithium mining, lithium battery, and related businesses. We filtered the list to narrow down our search to just those stocks that are trading at or under a 20x forward price-to-earnings ratio. Then we arranged those stocks based on the upside potential predicted by the analysts. Finally, we ranked the shortlisted stocks based on the number of hedge funds holding stakes in the respective stocks as of Q1 2025, using Insider Monkey’s hedge fund database.
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. Microvast Holdings, Inc. (NASDAQ:MVST)
Forward Price-to-Earnings: 18.55
Upside Potential: 21.21%
Number of Hedge Funds: 17
Microvast Holdings, Inc. (NASDAQ:MVST), a cheaply priced stock popular among hedge funds and offering upside potential, is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
Microvast Holdings, Inc. (NASDAQ:MVST) has experienced a strong 2025. The company’s share price has gone up 705% in the past year and 51.83% in the past six months. This growth is driven by its innovative and strategic initiatives.
In 2024, Microvast Holdings, Inc. (NASDAQ:MVST) entered into marine electrification, partnering with Norway’s Evoy. Under this partnership, MVST’s MV-I battery will be integrated into high-output electric boat systems. This move is critical for Microvast as it opens doors to specialized sectors such as aviation, defense, and construction.
Furthermore, Microvast Holdings, Inc. (NASDAQ:MVST) achieved another milestone in January 2025 with the advancement of its True All-Solid-State Battery (ASSB) technology. This technology offers higher voltage, better safety, and greater efficiency as it is built with bipolar stacking and no liquid electrolyte. Its applications are diverse, ranging from electric school buses to data centers and robotics.
With management’s bold expectations of 18-25% YoY revenue growth in 2025 and 16.4% CAGR growth projected for the battery market, Microvast Holdings, Inc. (NASDAQ:MVST) is one of the top picks in our list of cheap lithium stocks.
Microvast Holdings, Inc. (NASDAQ:MVST) offers battery technologies for electric vehicles and energy storage solutions. It is included in our list of cheap lithium stocks.
9. Energizer Holdings, Inc. (NYSE:ENR)
Forward Price-to-Earnings: 6.82
Upside Potential: 20.83%
Number of Hedge Funds: 19
Energizer Holdings, Inc. (NYSE:ENR) is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
Ahead of the earnings release for Q3 on August 4, 2025, Barclays, on July 15, 2025, reduced its price target on Energizer Holdings, Inc. (NYSE:ENR) from $26 to $24. The analyst attributed this to softness in the staples sector that will be reflected in the company’s Q3 performance.
Meanwhile, two days later, UBS also decreased its price target on Energizer Holdings, Inc. (NYSE:ENR) from $26 to $23, maintaining a ‘Neutral’ rating. The analyst holds a cautious yet steady view on the company’s growth outlook.
With skepticism surrounding analyst outlooks, attention shifts to the company’s upcoming earnings release. In anticipation of the results, the company’s share price has shown upward momentum. The share price has risen 21.75% in the past month, while the one-week return has been 5.76%.
Energizer Holdings, Inc. (NYSE:ENR), a global consumer goods company, manufactures batteries, portable lights, and automotive care products. It is included in our list of cheap lithium stocks.
