In this article, we will discuss: 7 Best Lithium and Battery Stocks to Buy Right Now.
According to a December 12, 2025, Bloomberg report, energy storage technologies could drive up demand for lithium as the global market seeks stability following years of excess supply. Analysts at Citigroup, UBS, and Bernstein anticipate that storage demand will surpass that of electric vehicles in 2026 as utility-scale batteries become a rapidly expanding lithium consumer. Lithium prices have recovered 50% from June lows, but they are still less than one-sixth of late-2022 levels, according to BloombergNEF data. Chris Williams of Adamas Intelligence noted that energy storage remains the largest key factor for the lithium demand in 2026.
Caution tempers that optimism. As stated by UBS, regulatory support and declining battery costs could lead to a 55% spike in lithium demand from storage in 2026 compared to a 19% rise from EVs. Martin Jackson of CRU Group, nevertheless, called particular projections gravely exaggerated and stated that supply is still expected to exceed demand. Moreover, Iola Hughes of Benchmark Mineral Intelligence cautioned that China’s stricter regulations would cause growth to be choppier and possibly weaker in 2026-2027.
With that said, here are the 7 Best Lithium and Battery Stocks to Buy Right Now.
Photo by Kumpan Electric on Unsplash
Methodology:
We sifted through the ETFs and online rankings to form an initial list of the 12 Best Lithium and Battery Stocks to Buy Right Now. From the resultant dataset, we chose the 7 Best Lithium and Battery Stocks with the highest number of hedge fund holders for each stock using Insider Monkey’s database of hedge funds as of Q3 2025. We also considered the analysts’ upside potential as of January 21. Finally, we ranked these stocks in ascending order based on hedge funds.
Note: Our list includes both pure-play and non-pure-play stocks.
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 427.7% since May 2014, beating its benchmark by 264 percentage points (see more details here).
7. Standard Lithium Ltd. (NYSE:SLI)
Number of Hedge Fund Holders: 8
Analysts’ Upside Potential as of January 21: 2.90%
Standard Lithium Ltd. (NYSE:SLI) is among the Best Battery Stocks.
On December 9, 2025, TheFly reported that three significant Export Credit Agencies have expressed interest in Smackover Lithium, a joint venture between Standard Lithium Ltd. (NYSE:SLI) and Equinor. Phase 1 of the South West Arkansas Project will be financed by more than $1 billion in senior secured project debt from the U.S. Export-Import Bank and Export Finance Norway.
The most recent quarter’s results from Standard Lithium Ltd. (NYSE:SLI) showed that important milestones were achieved. It included the release of a Maiden Inferred Resource for the Franklin Project in East Texas, which was recognized for its high lithium-in-brine grades, and a Definitive Feasibility Study for the SWA Project, which verified its cost-competitiveness. After the quarter ended, the business finished a capital raise, which made it possible to move forward with the Franklin and other East Texas projects as well as the final investment decision at SWA.
Standard Lithium Ltd. (NYSE:SLI) anticipates finalizing project funding, securing customer offtake agreements, selecting key SWA vendors, and approving FID to commence building in 2026.
The stock was up by 3.35% YTD as of January 21, 2026.
6. Sigma Lithium Corporation (NASDAQ:SGML)
Number of Hedge Fund Holders: 15
Analysts’ Upside Potential as of January 21: 24.22%
Sigma Lithium Corporation (NASDAQ:SGML) is among the Best Battery Stocks.
TheFly reported on January 15, 2026, that BofA kept its Underperform rating. It lifted the price goal for Sigma Lithium Corporation (NASDAQ:SGML) from $13 to $14. The analyst pointed out that an equity raising might still happen, even if it is dilutive. It characterized the recent operational update as insignificant and “non-incremental to our thesis.”
Separately, Canaccord reduced Sigma Lithium Corporation (NASDAQ:SGML) to Hold from Buy on January 16, 2026. It raised its price target to C$20.50 from C$14 as part of a Q4 outlook. The company amended its price deck for 2026 and 2027, which led to an average target price rise of 30%. The company’s inability to use its waste piles and the uncertainties surrounding the resumption of mining on the site are reflected in the rating.
Sigma Lithium Corporation (NASDAQ:SGML)’s net revenue rose by 69% quarter over quarter and 36% YoY in the most recent quarter. This was due to its commercial partnerships with clients and reliance on their balance sheets, which allowed it to effectively manage changes in the price of lithium.
Sigma Lithium Corporation (NASDAQ:SGML) is a commercial manufacturer of lithium concentrate.
5. Lithium Americas Corp. (NYSE:LAC)
Number of Hedge Fund Holders: 16
Analysts’ Upside Potential as of January 21: 6.17%
Lithium Americas Corp. (NYSE:LAC) is among the Best Battery Stocks.
The Fly reported on January 12, 2026, that Scotiabank reaffirmed its Sector Perform rating and lifted the price objective for Lithium Americas Corp. (NYSE:LAC) to $7 from $5. The company stated that although the growth in EV demand fell short of projections, the lithium market inflection seems to be well-supported.
Lithium Americas Corp. (NYSE:LAC) announced in the last quarter that it has received support from the United States Administration, General Motors, and other partners to promote large-scale lithium manufacturing and to improve the U.S. supply chain. The project is more certain now that the first DOE loan drawdown has been received. During the quarter, $145.9 million in construction capital costs were capitalized, totaling $720.0 million in capitalized costs. The engineering design is more than 80% complete, and the Phase 1 processing plant’s mechanical completion is scheduled for late 2027. Steel column installation, plant road completion, laydown yards, and pipe-rack section fabrication are important turning points.
Lithium Americas Corp. (NYSE:LAC) is a manufacturer of pure-play lithium.
4. NIO Inc. (NYSE:NIO)
Number of Hedge Fund Holders: 34
Analysts’ Upside Potential as of January 21: 29.19%
NIO Inc. (NYSE:NIO) is among the Best Battery Stocks.
Reuters reported on January 13, 2026, that NIO Inc. (NYSE:NIO) declared it would continue to grow its business operations in Europe. The European Commission’s announcement outlining the conditions under which Chinese-made EV producers could replace EU tariffs with minimum pricing plans prompted this. The corporation stated that current discussions aimed at reaching a mutually respectful solution were encouraging. Furthermore, it praised the advancements achieved between China and the EU.
On January 16, 2026, TheFly reported that Macquarie maintained its Outperform rating on NIO Inc. (NYSE:NIO). Its price target was raised from $5.30 to $6.10. The company increased its FY26 volume projection by 7% due to rising demand for the ES8 and Firefly models. Macquarie believes that volume growth of roughly 40% is possible even if it expects a bigger net loss and margin compression in FY26. This level of expansion would allow the firm to increase its market share despite the generally adverse circumstances for China’s electric vehicle industry.
NIO Inc. (NYSE:NIO) is a renowned electric car manufacturer that focuses on the premium category.
3. Enovix Corporation (NASDAQ:ENVX)
Number of Hedge Fund Holders: 32
Analysts’ Upside Potential as of January 21: 152.49%
Enovix Corporation (NASDAQ:ENVX) is among the Best Battery Stocks.
On January 20, 2026, TheFly reported that Enovix Corporation (NASDAQ:ENVX) announced a leadership turnover in its operations group to support its production scale-up. This includes Chief Operating Officer Ajay Marathe’s planned retirement. To speed a controlled and repeatable production ramp, the corporation is expanding Senior Vice President Kihong Park’s duties and bringing on skilled manufacturing experts.
In the latest quarter, it was disclosed that Enovix Corporation (NASDAQ:ENVX) is preparing for the commercial introduction of its AI-1 battery, which has been officially proven as having the highest energy density documented for a smartphone battery. The corporation reported consistent improvement in Fab2’s production capabilities. It also continued the development of marquee customer programs and made significant progress with its key smartphone customer. Dr. Raj Talluri, President and CEO, expressed optimism regarding the company’s globally distributed teams and the route ahead as it prepares to mass produce and commercially deploy its AI-1 cells.
The stock is down by 0.13% YTD, as of January 22, 2026.
Enovix Corporation (NASDAQ:ENVX) designs, develops, manufactures, and commercializes Lithium-ion, or Li-ion, battery cells.
2. General Motors Company (NYSE:GM)
Number of Hedge Fund Holders: 71
Analysts’ Upside Potential as of January 21: 14.01
General Motors Company (NYSE:GM) is among the Best Battery Stocks.
General Motors Company (NYSE:GM) is moving manufacturing of the China-built Buick Envision SUV to its Kansas City assembly plant in the United States, starting with the next-generation model in 2028, based on a January 22, 2026, Reuters story. The action puts an end to nearly ten years of U.S. imports of the Envision, which had been subject to a 25% duty since 2018. As stated by the firm, the change benefits American workers and expands its domestic manufacturing base. The Chevrolet Equinox SUV will also be produced in Kansas City from Mexico in 2027, while the Chevy Blazer will be manufactured in Spring Hill, Tennessee. The plant will only concentrate on combustion-engine vehicles after producing the all-electric Chevrolet Bolt for a brief period of time.
Separately, on January 21, 2026, TheFly reported that JPMorgan increased General Motors Company (NYSE:GM)’s price objective from $85 to $100 with an Overweight rating. It noted “billion-dollar tailwinds” from lower U.S. emissions compliance costs and increased global output. The company anticipates that the removal of federal fuel economy and greenhouse gas penalties will help its 2026 outlook.
General Motors Company (NYSE:GM) designs, manufactures, and sells trucks, crossovers, cars, and automotive parts, as well as software-enabled services and subscriptions.
1. Tesla, Inc. (NASDAQ:TSLA)
Number of Hedge Fund Holders: 120
Analysts’ Upside Potential as of January 21: 6.97%
Tesla, Inc. (NASDAQ:TSLA) is among the Best Battery Stocks.
On January 21, 2026, TheFly reported that Lemonade introduced Lemonade Autonomous Car insurance for self-driving cars, debuting with Tesla, Inc. (NASDAQ:TSLA) Full Self-Driving (FSD). The new product reduces per-mile rates by about 50% when FSD is activated. Lemonade will have access to vehicle data to improve usage-based risk models, differentiate between autonomous and human driving, and evaluate risk based on autonomous software version due to a technical partnership with the EV king. The policy encourages households with a combination of Tesla, Inc. (NASDAQ:TSLA) and non-FSD vehicles, as well as intermittent FSD use. The rollout starts on January 26 in Arizona and one month later in Oregon.
Separately, on January 19, Reuters reported that the corporation stands to gain from Canada’s decision to lower taxes on Chinese-made EVs from 100% to 6.1%. It permits up to 49,000 vehicles each year. In 2023, Tesla, Inc. (NASDAQ:TSLA)’s Shanghai plant had been modified to produce Model Ys specifically for Canada. Prior to tariffs stopping exports, the plant had been shipping cars. The company has a competitive advantage over Chinese EV companies due to its well-established Canadian network of 39 outlets and streamlined production processes. This allows for quicker market entry and flexible car deployment under the new trade deal.
Tesla, Inc. (NASDAQ:TSLA) is a vertically integrated battery electric vehicle manufacturer and developer of real-world artificial intelligence software, such as self-driving cars and humanoid robots.
While we acknowledge the potential of TSLA 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 TSLA and that has 100x upside potential, check out our report about the cheapest AI stock.
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Disclosure: None. 7 Best Lithium and Battery Stocks to Buy Right Now is originally published on Insider Monkey. Insider Monkey focuses on uncovering the best investment ideas of hedge funds and insiders. Please subscribe to our free daily e-newsletter to get the latest investment ideas from hedge funds’ investor letters by entering your email address below.
READ NEXT: 20 Best Performing Stocks in 2025 and 12 Best Food Stocks to Buy in 2026.
