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.
8. TETRA Technologies, Inc. (NYSE:TTI)
Forward Price-to-Earnings: 20.00
Upside Potential: 49.67%
Number of Hedge Funds: 20
TETRA Technologies, Inc. (NYSE:TTI), 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.
On July 16, 2025, Stifel decreased its price target on TETRA Technologies, Inc. (NYSE:TTI) from $6.50 to $6, maintaining a ‘Buy’ rating. The analyst attributed the price revision to ongoing sector underperformance and limited short-term growth catalysts. However, the analyst sees long-term potential in the stock with its bullish rating.
The analyst’s optimism is driven by the company’s strong performance in Q1 2025. The company posted a 41% sequential increase in its adjusted EBITDA, taking it to $32.3 million, the highest Q1 EBITDA. Meanwhile, it reported revenue of $157 million, an increase of 17% from the previous quarter. Its free cash flow reached $15.4 million, thanks to $19 million in proceeds from a stake sale in Kodiak Gas Services. Amid the softness in its U.S. Water & Flowback segment during that period, the company noticed margins improving through cost controls and automation.
With growth expected in the company’s EBITDA in 2025 through opportunities from a deepwater Brazil project and seasonal gains in Europe, TETRA Technologies, Inc. (NYSE:TTI) is well-positioned for steady growth.
With its Completion Fluids & Products and Water & Flowback Services, TETRA Technologies, Inc. (NYSE:TTI) offers energy solutions and services. It is included in our list of cheap lithium stocks.
7. Ecovyst Inc. (NYSE:ECVT)
Forward Price-to-Earnings: 12.90
Upside Potential: 6.80%
Number of Hedge Funds: 23
Ecovyst Inc. (NYSE:ECVT) is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
Ecovyst Inc. (NYSE:ECVT) is progressing well in 2025 with its strategic and sustainable growth.
In May 2025, the company finalized its acquisition of Cornerstone Chemical’s sulfuric acid production assets in Waggaman, Louisiana. This acquisition is expected to enhance supply reliability and network flexibility. With demand growth anticipated for virgin sulfuric acid and sulfuric acid regeneration services, this acquisition boosts the company’s capacity to serve that demand.
Meanwhile, the company reported stronger-than-expected adjusted EBITDA of $180.5 million for Q2 2025. Despite sales missing forecasts due to Ecoservices headwinds, the company’s contract renewals and improved pricing improved the earnings. Meanwhile, the advanced materials segment showed recovery. Following the earnings release, BWS Financial maintained its ‘Buy’ rating on the stock with a $12 price target, believing that Ecovyst Inc. (NYSE:ECVT) will recover its earlier losses.
Furthermore, Ecovyst Inc. (NYSE:ECVT) released its 2024 Sustainability Report in June. With the release, ECVT highlighted its continued efforts toward environmental goals, including reductions in emissions, energy use, and waste.
Looking ahead, with an increase in its full-year sales forecast by $30 million, Ecovyst Inc. (NYSE:ECVT) signals confidence in its operational strength and strategic positioning.
With Ecoservices and Advanced Materials & Catalysts, Ecovyst Inc. (NYSE:ECVT) delivers specialty chemicals and advanced materials in the U.S. and internationally. It is included in our list of cheap lithium stocks.
6. EnerSys (NYSE:ENS)
Forward Price-to-Earnings: 9.59
Upside Potential: 12.84%
Number of Hedge Funds: 26
EnerSys (NYSE:ENS), 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.
Under a broader restructuring initiative, EnerSys (NYSE:ENS), on July 22, 2025, announced its decision to reduce its workforce by 575 employees, 11% of its non-production staff. The restructuring is expected to result in $80 million in annualized savings starting in fiscal 2026. Shawn O’Connell, the CEO of EnerSys (NYSE:ENS), emphasized that the move will create a more agile organization that aligns with its long-term priorities.
Meanwhile, analysts remain positive on the company’s outlook. In May, Roth MKM maintained its ‘Buy’ rating on EnerSys (NYSE:ENS) with a $120 price target. The company’s earnings release is scheduled for August 6, 2025.
With its energy solutions, EnerSys (NYSE:ENS) serves industrial, defense, and telecom sectors. It is included in our list of cheap lithium stocks.
5. Orion S.A. (NYSE:OEC)
Forward Price-to-Earnings: 8.68
Upside Potential: 20.52%
Number of Hedge Funds: 33
Orion S.A. (NYSE:OEC) is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
On July 15, 2025, Mizuho decreased its price target on Orion S.A. (NYSE:OEC) from $12 to $10, maintaining a ‘Neutral’ rating. According to the analyst, stock valuations in the sector are stabilizing. However, the recent pause in tariffs may have caused customers to buy earlier than usual to capitalize on lower costs. Thus, the analyst sees weaker sales toward the end of the year and expects soft performance from OEC in late 2025.
Meanwhile, Orion S.A. (NYSE:OEC) announced a battery materials plant in Texas, placing it on our list of cheap lithium stocks. This plant is set to be the only U.S. plant producing acetylene-based conductive additives for lithium-ion batteries. Thus, its critical role in the energy transition positions it for future growth.
Orion S.A. (NYSE:OEC), a global specialty chemicals company, supports electrification with advanced carbon-based materials for energy, mobility, and industrial segments. It is included in our list of cheap lithium stocks.
4. Rio Tinto Group (NYSE:RIO)
Forward Price-to-Earnings: 10.13
Upside Potential: 14.04%
Number of Hedge Funds: 36
Rio Tinto Group (NYSE:RIO) is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
On July 24, 2025, Rio Tinto Group (NYSE:RIO) finalized a binding agreement with Chile’s ENABI to jointly develop the Salares Altoandinos lithium project in the Atacama region. This deal secures Rio a 51% controlling stake, in return for which, it will contribute up to $425 million in financial and technological contributions, particularly its Direct Lithium Extraction (DLE) technology.
This deal was finalized just a week after the company’s strong Q2 production results that were announced on July 16, 2025. Rio Tinto Group (NYSE:RIO) reported a 13% YoY increase in copper-equivalent production and record output from its bauxite segment. Furthermore, Pilbara iron ore recorded its highest Q2 volumes since 2018. Meanwhile, the Oyu Tolgoi site recorded strong growth, set to become the world’s fourth-largest copper mine before the end of the decade.
As Rio Tinto Group (NYSE:RIO) advances with lithium integration from Arcadium, and as the Simandou iron ore project in Guinea ramps up for its first shipment by November, it is well placed within the mining and metals markets.
With its Iron Ore, Aluminum, Copper, and Minerals segments, Rio Tinto Group (NYSE:RIO) supplies materials essential for the energy transition and sustainable development. It is included in our list of cheap lithium stocks.
3. FMC Corporation (NYSE:FMC)
Forward Price-to-Earnings: 12.39
Upside Potential: 15.45%
Number of Hedge Funds: 38
FMC Corporation (NYSE:FMC), 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.
On July 14, 2025, KeyBanc increased its price target on FMC Corporation (NYSE:FMC) from $53 to $61, maintaining an ‘Overweight’ rating. For a stock that is trading at $43.21 as of the time of writing, representing a 41.17% upside, per the analyst. The analyst signals growing optimism around the company’s growth potential.
Meanwhile, two days later, FMC Corporation (NYSE:FMC)’s board declared a regular quarterly dividend of $0.58 per share, payable on October 16, 2025. Amid the volatile market environment, this points to the company’s commitment to shareholder returns and operational resilience.
With decades of experience in developing and producing lithium amides, lithium alkoxides, lithium metal hydrides, alkyllithiums, and aryllithiums, FMC Corporation (NYSE:FMC) has enabled the production of agricultural and pharmaceutical intermediates. It is included in our list of cheap lithium stocks.
FMC Corporation (NYSE:FMC), a global agricultural sciences company, offers sustainable crop protection and precision agriculture solutions. It is included in our list of cheap lithium stocks.
2. Enphase Energy, Inc. (NASDAQ:ENPH)
Forward Price-to-Earnings: 13.68
Upside Potential: 26.82%
Number of Hedge Funds: 40
Enphase Energy, Inc. (NASDAQ:ENPH) is included in our list of the 10 Cheap Lithium Stocks to Buy According to Hedge Funds.
While the second-quarter performance of Enphase Energy, Inc. (NASDAQ:ENPH) showed steady growth, the company’s forward-looking momentum gained analysts’ attention. The company reported financial results for Q2 2025 on July 22, 2025.
The company continued its growth in energy resilience and smart home integration with $363.2 million in revenue, 1.53 million microinverters shipped, and record IQ Battery volumes in the second quarter. Although Q2 guidance remains soft, Wells Fargo, on July 24, 2025, increased its price target on ENPH from $42 to $45, citing improved clarity for 2026 and long-term growth potential.
Digging deeper into the company’s Q2 performance, Enphase Energy, Inc. (NASDAQ:ENPH) expanded its global footprint. Its IQ EV chargers reached more European markets, and balcony solar kits were launched in Belgium and Germany. Furthermore, by securing tax incentives under the Inflation Reduction Act, the company progressed well with its U.S. manufacturing. With 2026 expected to be a critical year for the company, it is included in our list of cheap lithium stocks.
Enphase Energy, Inc. (NASDAQ:ENPH) is a global energy technology company, supplying microinverter-based solar and battery systems. It is included in our list of cheap lithium stocks.
1. Exxon Mobil Corporation (NYSE:XOM)
Forward Price-to-Earnings: 17.33
Upside Potential: 12.43%
Number of Hedge Funds: 94
Exxon Mobil Corporation (NYSE:XOM), 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.
On July 18, 2025, Exxon Mobil Corporation (NYSE:XOM) announced that it would respect the International Chamber of Commerce’s arbitration ruling in its dispute with Hess Corporation regarding the Stabroek Block in Guyana. XOM expressed its disagreement with the tribunal’s interpretation of its preemption rights. However, the company emphasized its commitment to the rule of law, welcoming Chevron to the joint venture.
Meanwhile, Exxon Mobil Corporation (NYSE:XOM) gained Piper Sandler’s attention, which raised its price target on the company to $131, maintaining an ‘Overweight’ rating. The analyst attributed the update to higher crude prices and refining margins, increasing its Q2 EPS and EBITDA guidance by 14% and 10%, respectively.
Exxon Mobil Corporation (NYSE:XOM), with 55 years of uninterrupted dividends, remains a dominant player in the global energy market. It is a global energy leader that operates across the oil, gas, and chemicals sectors. It is included in our list of cheap lithium stocks.
While we acknowledge the potential of XOM to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than XOM and that has 100x upside potential, check out our report about this cheapest AI stock.
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