10 Battery Stocks to Buy Right Now

Under incoming President Donald Trump’s “drill baby drill” energy mandate, electric vehicles don’t have the same hot sector draw they did under Biden. Does that mean battery stocks are a buy right now?

Not necessarily. But one thing remains true—battery stocks might drive the technologies of the future, so they still have MASSIVE promise.

Below, I’ve put together a watchlist of battery-related stocks to monitor in this rapidly evolving market. Here are the highlights:

Before you send in your orders, take note: I have NO plans to trade these stocks unless they fit my preferred setups. This is only a watchlist.

The best traders watch more than they trade. That’s what I’m trying to model here. Pay attention to the work that goes in, not the picks that come out.

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Let’s get to the picks…

Tesla Inc. (NASDAQ: TSLA)

Tesla is the market cap leader in EV innovation, but its connection to the battery market is just as important. Tesla’s battery production and partnerships make it a must-watch stock. Recently, Tesla broke ground on a lithium refinery in Texas to secure its own supply chain. This move could lower costs and reduce the company’s reliance on suppliers.

Tesla’s ability to adapt to global economic challenges, such as fluctuating lithium prices, demonstrates why it’s a long-term contender. Elon Musk’s strategy to align Tesla with international trade opportunities in Argentina’s lithium triangle only strengthens its position. For traders, Tesla’s stock is a bellwether for the broader EV and battery industries, often reacting to market trends before other players.

The company’s partnerships with Panasonic, CATL, and BYD make it a major buyer of lithium-ion batteries and an active participant in the push for solid-state technology. Tesla isn’t just a car company—it’s a significant player in the battery market.

Beyond its cars, Tesla’s battery advancements have implications for energy storage and grid solutions, giving it an edge over competitors. If you’re curious about EV-related stocks, check out this EV stocks watchlist.

Honeywell International Inc. (NASDAQ: HON)

Honeywell might not be the first name that comes to mind for battery stocks, but its role in battery component manufacturing makes it an overlooked player. The company recently announced a $126.6 million project in Louisiana to produce LiFSI, an advanced electrolyte salt for EV batteries. This positions Honeywell as a vital supplier in the battery supply chain.

The company’s global operations allow it to leverage international trade opportunities, making it less vulnerable to supply chain disruptions. As the first U.S.-based plant producing LiFSI, Honeywell’s Geismar facility demonstrates the company’s focus on innovation and domestic expansion.

For traders, Honeywell offers a combination of growth potential and stability. Its diversified portfolio across industrial sectors helps balance risk while benefiting from the battery market’s rapid expansion.

Enphase Energy Inc. (NASDAQ: ENPH)

Enphase Energy (NASDAQ: ENPH) is a leader in microinverters and energy storage solutions. The company’s IQ Batteries, designed for residential and commercial solar installations, have seen strong demand as homeowners and businesses adopt renewable energy systems. Enphase’s ability to integrate battery technology with solar systems has made it a standout in the energy storage market.

Enphase’s revenue growth has been supported by international expansion, particularly in regions with strong solar adoption like Europe and Australia. The company’s focus on innovation and cost-effective battery production has helped it maintain competitive pricing while improving margins.

For traders, Enphase’s stock often reacts to earnings announcements and news about renewable energy policies. Keep an eye on regulatory developments and supply chain updates to time your trades effectively.

Albemarle Corp. (NYSE: ALB)

Albemarle is one of the world’s largest lithium producers, supplying critical materials for lithium-ion batteries. The company is doubling its lithium carbonate production capacity by 2025, positioning itself to meet the rising demand for EVs.

Albemarle’s partnerships with major automakers like Ford and BMW demonstrate its strategic importance in the battery supply chain. Despite recent earnings challenges, analysts remain optimistic about Albemarle’s long-term prospects, with projected revenue growth fueled by the global push for electrification.

For traders, Albemarle’s exposure to lithium pricing trends makes it a stock that often sees significant price swings. It’s a prime candidate for momentum-based trading strategies.

QuantumScape Corp. (NYSE: QS)

QuantumScape is a pioneer in solid-state battery technology, promising higher energy density and faster charging times compared to traditional lithium-ion batteries. While its stock has faced challenges due to delays in commercial production, its partnership with Volkswagen highlights its potential.

QuantumScape’s QSE-5 batteries are set to revolutionize EVs if the company can scale production. Traders should watch for updates on prototype testing and production milestones, as these events often lead to sharp price movements.

However, it’s still in the prototype and testing phases, with no commercial products yet. Investors in QS are betting on the future of solid-state battery technology, which means the stock is highly speculative.

Solid Power Inc. (NASDAQ: SLDP)

Solid Power (NASDAQ: SLDP) is another solid-state battery developer. The company differentiates itself by focusing on scalable production methods, aiming to bring solid-state batteries to market faster than competitors. Solid Power’s partnerships with automakers like Ford and BMW give it an edge in gaining industry traction.

While the stock remains speculative, Solid Power has shown promise in reducing production costs and advancing its prototype technology. For traders, SLDP offers opportunities tied to news events, such as updates on production timelines or new industry partnerships. Keep risk management in mind, as early-stage battery stocks can be highly volatile.

Enovix Corp. (NASDAQ: ENVX)

Enovix (NASDAQ: ENVX) is carving a niche in the battery sector by developing advanced lithium-ion batteries with higher energy density and enhanced safety features. Enovix’s 3D cell architecture is designed to improve performance and durability, making it ideal for applications in consumer electronics, electric vehicles, and energy storage systems.

The company’s recent strides in production expansion and its focus on scaling its technology have drawn investor attention. Enovix is also working on partnerships to integrate its batteries into next-generation products. While the company is still in its growth phase, its focus on innovation positions it well to capture market share in the battery technology space.

Enovix is a lower-float stock, making it prone to sharp moves on news. Traders should watch for updates on production milestones and revenue growth, as these can act as catalysts for price spikes. Risk management is key when trading ENVX, as it’s a smaller, more speculative stock in the industry.

Sigma Lithium Corporation (NASDAQ: SGML)

Sigma Lithium (NASDAQ: SGML) is a pure-play lithium producer focused on sustainable mining practices. The company’s primary operations are based in Brazil, where it has access to high-grade lithium deposits. As demand for lithium skyrockets due to the global shift toward EVs and renewable energy, Sigma Lithium is well-positioned to capitalize on this trend.

What sets Sigma apart is its commitment to environmental sustainability, leveraging clean energy in its extraction processes and producing battery-grade lithium with lower carbon emissions. This focus on eco-friendly production aligns with the priorities of battery manufacturers and automakers aiming to reduce their environmental footprint.

Sigma’s share price often reacts to fluctuations in lithium prices and updates on mining production. Traders should keep an eye on supply chain trends and global lithium demand, as these factors can create significant trading opportunities.

Plug Power Inc. (NASDAQ: PLUG)

Plug Power (NASDAQ: PLUG) is a leader in hydrogen fuel cell systems, but its energy storage solutions make it relevant to the battery sector as well. Plug Power’s focus on green hydrogen and energy storage complements its broader mission of decarbonizing industries. The company serves diverse sectors, including transportation, industrial equipment, and renewable energy storage.

Plug Power’s revenue growth has been driven by increased adoption of its hydrogen fuel cells, but its foray into battery storage expands its market potential. The company’s recent partnerships with large-scale energy players signal confidence in its ability to integrate battery technology into its offerings.

For traders, PLUG’s stock offers high volatility and frequent news catalysts, such as earnings announcements and partnership deals. Stay updated on industry trends and Plug Power’s progress in energy storage for potential trading setups.

NIO Inc. (NYSE: NIO)

NIO (NYSE: NIO), a Chinese EV manufacturer, has made battery technology a core part of its business strategy. NIO’s innovative approach includes battery swapping technology, which allows users to replace depleted batteries with fully charged ones in minutes. This unique feature sets NIO apart in the competitive EV market.

The company’s focus on battery-as-a-service (BaaS) also creates a recurring revenue stream, further enhancing its growth potential. By separating the cost of batteries from its EVs, NIO makes its vehicles more affordable, boosting demand in international markets.

The company’s recent partnership with BYD for battery supply demonstrates its commitment to scaling production.

NIO’s stock price is heavily influenced by global markets and the adoption of EVs in China, the world’s largest EV market. Traders should monitor NIO’s earnings reports and updates on its BaaS adoption rate for signs of growth. NIO’s innovative business model makes it an interesting stock to trade, but its price volatility requires careful planning.

How to Evaluate the Best Solid-State Battery Stocks

Evaluating solid-state battery companies starts with understanding the potential of their technology and their progress toward commercialization. Look for companies with strong research and development capabilities, backed by patents and partnerships with major industry players. A solid-state battery manufacturer with a scalable prototype and partnerships with automakers like Ford or Toyota will likely have an edge over competitors.

Next, assess the company’s financial health. Early-stage companies often operate at a loss, so monitor their cash reserves, revenue growth, and production expansion plans. Watch for signs that the company can reduce production costs and achieve economies of scale.

Finally, consider the stock’s price action and trading patterns. Solid-state battery stocks can be highly volatile, so it’s crucial to have a trading plan in place. Monitor industry trends, supply chain news, and technological breakthroughs to time your trades effectively.

Key Trends Driving Battery Stock Growth

Battery stock growth is driven by the increasing demand for EVs, renewable energy storage, and portable electronics. Governments worldwide are setting aggressive targets for EV adoption, creating a tailwind for battery manufacturers. The push for greener energy solutions has also boosted demand for advanced energy storage technologies like lithium-ion and solid-state batteries.

Supply chain dynamics play a critical role in battery stock performance. As demand for lithium and other key components rises, companies investing in sustainable sourcing and production methods are gaining investor attention. Innovations in battery technology, such as improved energy density and faster charging times, further fuel growth in this sector.

For traders, staying updated on market trends and technological advancements is essential. Battery stocks often react to news about raw material shortages, production milestones, and partnerships, offering plenty of trading opportunities.

Best Practices for Investing in Battery Stocks

Investing in battery stocks requires a thoughtful approach, especially in a sector as dynamic and rapidly evolving as this one. For starters, building a balanced portfolio is essential to mitigate risks while maximizing potential profits. By diversifying your investments across battery producers, EV manufacturers, and renewable energy storage companies, you can ensure you’re not overly reliant on any single subsector or company. This approach aligns with the strategies I teach to students: focus on building a foundation that can withstand the ups and downs of economic conditions and market cycles.

It’s also important to keep a close eye on financial markets and their influence on battery stocks. Changes in interest rates, inflation, or global demand for EVs can all impact the sector. For instance, when international agreements boost international trade in lithium or EV components, it can trigger bullish sentiment for battery producers. Staying attuned to these larger market trends can help you anticipate potential moves in the stock markets.

Remember that this is a fast-moving industry, with companies frequently announcing new innovations or partnerships. Staying informed and acting decisively is key to capturing trading opportunities. Whether it’s capitalizing on short-term news or holding long-term winners, the goal is to align your strategies with market realities to maximize returns.

Diversify Your Portfolio

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Diversification is key when investing in battery stocks. While it’s tempting to focus on popular names like Tesla or Albemarle, spreading your investments across multiple companies reduces risk. Consider mixing EV manufacturers, lithium producers, and battery technology innovators. This ensures your portfolio captures growth across the supply chain, from raw material sourcing to energy storage solutions.

For example, investing in Albemarle taps into lithium production, while holding shares of Enphase Energy provides exposure to renewable energy storage. This approach balances your portfolio, minimizing the impact of sector-specific challenges like supply chain disruptions or regulatory changes.

Remember, well-rounded portfolios don’t just lower risks—they increase the chances of capturing gains across a rapidly evolving sector. Use this strategy to protect your capital and maximize your returns.

Semiconductor stocks have a critical role in enabling renewable technologies. Broadening your knowledge of semiconductor companies can complement your investment strategy—check out this list of the best semiconductor stocks.

Are those stocks above your paygrade? Here’s my semiconductor penny stocks watchlist.

Monitor Industry Trends and News

The battery industry moves quickly, with new technologies and policies regularly influencing stock prices. Staying informed about trends like solid-state battery advancements or changes in government EV incentives is crucial. Major announcements—such as Tesla’s battery breakthroughs or updates on QuantumScape’s prototypes—often trigger significant stock price moves.

Traders who stay ahead of these developments can position themselves for short-term opportunities. For example, news of a breakthrough in battery energy density might create momentum for stocks like Enovix or Solid Power. Use tools like news alerts and financial platforms to track these trends and adjust your trading strategies accordingly.

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Consult with Financial Advisors

Before diving into battery stock investments, consider consulting with a financial advisor. Battery stocks can be highly volatile, and professional advice can help you align your investment strategy with your financial goals. Advisors can also offer insights into ETFs and funds that provide exposure to battery stocks, offering a less risky way to invest in the sector.

For example, ETFs like Global X Lithium & Battery Tech (LIT) offer broad exposure to the battery market, covering companies across the value chain. This can be an excellent option for investors seeking growth while minimizing company-specific risk.

Key Takeaways

Battery stocks represent a high-growth sector fueled by the global shift toward EVs and renewable energy. Companies like Tesla, Albemarle, and Enphase Energy are leading the charge with innovations in battery technology and energy storage. However, trading these stocks requires understanding the risks and potential rewards tied to market trends and technological advancements.

This is a market tailor-made for traders who are prepared. Battery stocks thrive on volatility, but it’s up to you to capitalize on it. Stick to your plan, manage your risk, and don’t let FOMO drive your decisions.

These opportunities are fast and unpredictable, but with the right strategy, you can make them work for you.

I recommend that you pay close attention as this possibly historic bull market unfolds…

If you want to know what I’m looking for—check out my free webinar here!

Frequently Asked Questions

Are Battery Stocks a Good Long-Term Investment?

Battery stocks can be a solid long-term investment, especially as demand for EVs and renewable energy continues to rise. Companies like Albemarle benefit from steady lithium demand, while innovators like QuantumScape offer potential high-growth opportunities. However, these stocks can be volatile due to raw material pricing and technological hurdles. Long-term investors should focus on companies with strong fundamentals and market-leading technology.

How Do Rising Raw Material Costs Affect Battery Stock Performance?

Rising costs for lithium, cobalt, and other key materials can put pressure on battery manufacturers’ margins. Companies that can secure sustainable supply chains or innovate to reduce material usage often outperform their competitors. For example, Enovix’s focus on reducing production costs gives it an edge in navigating price volatility. Monitor raw material pricing closely when trading battery stocks, as it often correlates with short-term price swings.

Will Battery Stocks Go Up?

Battery stocks have strong growth potential, driven by increasing EV adoption, renewable energy storage needs, and advancements in solid-state battery technology. However, the sector is not without risks. Market trends, government policies, and raw material supply can all influence stock prices. For traders, staying informed and managing risk is essential to capitalizing on this volatile but promising market.