We recently compiled a list of the 12 Most Promising EV Battery Stocks According to Wall Street Analysts. In this article, we are going to take a look at where Lithium Americas Corp. (NYSE:LAC) stands against the other EV Battery stocks.
The term “EV battery stocks” describes businesses producing and developing electric vehicle batteries. This includes firms that provide energy storage solutions, supply battery components, and produce EV batteries.
There is a market for reasonably priced electric cars. Investors can look into the companies making EV batteries, the most crucial and expensive components for EVs, to stay ahead of that demand. The need for EV batteries will rise sharply if the manufacturing of electric vehicles rises dramatically during the next ten years.
To satisfy the need for batteries with greater capacity and cheaper costs, major manufacturers are making significant investments. New energy storage solutions being developed by battery technology start-ups, some of which are coming public through mergers with special purpose acquisition companies, have the potential to completely transform the market. EV battery stocks are a great investment option right now.
The EV battery market is booming. As per a research report, the market for electric vehicle batteries was estimated to be worth $59.06 billion in 2023 and is projected to grow at a compound annual growth rate (CAGR) of 6.4% from 2024 to 2032, from $67.78 billion to $111.20 billion. Asia Pacific held the largest regional share of the global EV battery market in 2023, with a valuation of $28.44 billion, and is anticipated to continue to do so for the duration of the forecast period. One of the main factors propelling the region’s market expansion is China’s soaring EV sales. As per the International Energy Agency, China accounted for the largest global sales of electric vehicles in 2023, with 8.4 million units sold.
While the EV battery market is growing, the cost of EV batteries has dropped significantly in recent years, as per S&P Global, mostly due to declining prices for essential components like nickel, cobalt, and lithium. However, over the coming years, prices are anticipated to stabilize. For instance, the price of lithium carbonate dropped from around $70,000 per metric ton to less than $15,000 in 2024, while the price of cobalt dipped from $70,000 per metric ton in 2022 to about $30,000. While the global average price is predicted to increase somewhat in the second part of the decade, S&P Global Mobility forecasts that nickel cobalt manganese (NCM811) cell prices in Europe will decline by more than 7% between 2024 and 2030. This is caused by a strained raw material supply chain and unsustainable low profit margins for certain suppliers. NCM811 cells are currently cheaper in Greater China due to increased local production, while they are more expensive in Europe.
In contrast, the average cost of lithium iron phosphate (LFP) cells in 2024 will be about $60/kWh, which is 20% less than that of NCM cells. Although LFP production is currently dominated by Greater China, Europe is growing its capacity. However, higher production costs in non-Chinese countries will probably result in a medium-term increase in LFP pricing. While NCM811 packs continue to average $103/kWh in the region, LFP packs in Greater China have achieved the goal of cost parity with internal combustion engine vehicles at $100/kWh. The cost of battery metal may increase, but economies of scale and efficiency improvements should keep costs largely constant.
Analysts anticipate lithium prices to stabilize in 2025 as mine closures and robust EV sales in China lessen the global lithium supply glut. China’s state-owned commodity data source Antaike estimates the glut will decrease by half to 80,000 tons of lithium carbonate, while Cameron Hughes of CRU Group stated that 2024 curtailments and possible additional reductions will substantially relieve the surplus. Over 5 million cars have already benefited from China’s improved EV subsidies, which have driven up demand and helped fuel a late-2024 lithium rally. A buyer of cathode materials attested that the price rise was caused by subsidies, and analysts predict that policy assistance will keep prices rising in 2025, strengthening a bullish outlook.
David Merriman, research director at metals research company Project Blue, stated:
“Any improvement in prices is likely to be felt towards the end of 2025 as inventories are used up and buyers return to the spot market.”
An aerial view of the vast Lihtium deposits in the Jujuy province of Argentina.
Our Methodology
For this list, we compiled an initial list of 20 EV Battery stocks. Then we selected the 12 stocks that had the highest upside potential as of April 29, 2025. We have only included stocks in our list with an upside potential of 20% or higher. The stocks are ranked in ascending order of the upside potential.
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 275% since May 2014, beating its benchmark by 150 percentage points. (see more details here).
Lithium Americas Corp. (NYSE:LAC)
Analysts’ Upside Potential as of April 29: 52.86%
Lithium Americas Corp. (NYSE:LAC) is a company that only produces lithium. The company controls 62% of Thacker Pass, which is located in northwest Nevada, with General Motors controlling the remaining 38%. Thacker Pass has recently begun construction and is projected to begin producing in the mid- to late 2020s. Thacker Pass is one of the world’s most significant lithium resources. Morningstar analysts predict that the project will be in the lower half of the worldwide cost curve and would be the first clay-based asset to go into production. The management intends to turn Thacker Pass into a fully functional lithium production facility that will sell to the lithium chemical market and have on-site downstream refining capabilities.
The company’s joint venture with General Motors Company is what makes it so appealing. As part of the agreement, General Motors Company will get the 20-year exclusive right to Thacker Pass Phase 1 production capacity. The collaboration guarantees a consistent consumer for Lithium Americas Corp. (NYSE:LAC)’s future output and underlines the project’s significance to GM’s electric vehicle goals. For this reason, Lithium Americas Corp. (NYSE:LAC) has a 52.86% upside potential from its current price, making it one of the Most Promising Stocks.
The company has a healthy liquidity position as of December 31, 2024, with over $594.2 million in cash, cash equivalents, and restricted cash on hand. Lithium Americas Corp. (NYSE:LAC) capitalized $179.9 million in construction capital costs and other project-related expenses throughout the year, showing ongoing investments in development and infrastructure projects to support long-term growth.
Overall, LAC ranks 6th on our list of the 12 Most Promising EV Battery Stocks According to Wall Street Analysts. While we acknowledge the potential of EV Battery companies, our conviction lies in the belief that AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. There is an AI stock that went up since the beginning of 2025, while popular AI stocks lost around 25%. If you are looking for an AI stock that is more promising than LAC but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock.
READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires.
Disclosure: None. This article is originally published at Insider Monkey.