Is STLA Stock a Top Pick for EV Batteries, Says Wall Street?

We recently put together a list of the 12 Most Promising EV Battery Stocks According to Wall Street Analysts. This article will examine how Stellantis N.V. (NYSE:STLA) measures up against other electric vehicle battery companies.

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.

A market exists for affordable electric cars. To capitalize on this trend, investors might consider focusing on firms producing EV batteries, which are the most vital and costly parts of these vehicles. If the production of electric vehicles increases significantly over the coming decade, the demand for EV batteries will likely surge as well.

In order to meet the demand for more powerful yet less expensive batteries, key players in the industry are pouring substantial resources into research and development. Innovative energy-storage technologies being pioneered by startup firms specializing in battery tech—some of which are going public via tie-ups with special-purpose acquisition corporations—are poised to revolutionize the sector entirely. At present, investing in electric vehicle battery stocks looks like an excellent opportunity.

The market for electric vehicle batteries is experiencing significant growth. According to a research study, this sector was valued at approximately $59.06 billion in 2023 and is expected to expand at an impressive compound annual growth rate (CAGR) of 6.4%, increasing from $67.78 billion in 2024 to reach $111.20 billion by 2032. In terms of geography, the Asia-Pacific region dominated the global EV battery market as of 2023, boasting a value of around $28.44 billion. This trend is likely to persist throughout the forecast horizon. A key driver behind this robust performance in the Asian markets is particularly attributed to surging electric car sales within China. Data provided by the International Energy Agency indicates that China led worldwide electric vehicle purchases in 2023, selling roughly 8.4 million units during that year.

As the electric vehicle (EV) battery sector expands, costs have substantially decreased in recent years, according to data from S&P Global. The reduction can largely be attributed to falling prices for key materials such as nickel, cobalt, and lithium. Despite this trend, experts predict that pricing will start stabilizing soon. To illustrate, the cost of lithium carbonate fell sharply—from roughly $70,000 per metric ton to under $15,000—by 2024; similarly, the price of cobalt slid down from approximately $70,000 per metric ton in 2022 to around $30,000. S&P Global Mobility anticipates an incremental rise toward the latter half of the decade but predicts that European markets will see a decrease exceeding 7% in the price of nickel-cobalt-manganese (NCM811) cells from 2024 through 2030. This stabilization comes amid challenges with raw material supplies and unsustainably thin profit margins affecting some producers. At present, NCM811 cells are relatively inexpensive in Greater China because of heightened domestic manufacturing capacity compared to higher costs seen across Europe.

On the contrary, the anticipated average price for lithium iron phosphate (LFP) cells in 2024 stands around $60 per kWh, marking a decrease of approximately 20% compared to NCM cells. Despite the current dominance of Greater China in LFP manufacturing, Europe is expanding its capabilities. Nonetheless, elevated production expenses outside Chinese territories might lead to an uptick in LFP prices over the medium term. In this area, NCM811 pack averages remain steady at roughly $103 per kWh; however, within Greater China, LFP packs have reached cost parity with conventional internal combustion engines at $100 per kWh. Even though the expense of battery metals could rise, gains from increased economies of scale and enhanced efficiencies ought to maintain overall costs relatively stable.

Experts expect lithium prices to level off in 2025 due to mine shutdowns and strong electric vehicle sales in China, reducing the worldwide oversupply of lithium. According to Antaike, a Chinese government-affiliated commodity information provider, this oversupply could be cut nearly in half down to about 80,000 metric tons of lithium carbonate. Meanwhile, Cameron Hughes at CRU Group noted that production cuts planned for 2024, along with potential further decreases later, should significantly alleviate the excess inventory. More than five million vehicles have been supported by enhanced EV incentives in China, boosting demand and contributing to a surge in lithium prices towards the end of 2024. A purchaser of cathode materials confirmed that these subsidies were behind much of the cost increase, and industry watchers forecast continued upward pressure on pricing throughout 2025, reinforcing an optimistic market perspective.

David Merriman, who leads research at the metal study firm Project Blue, said:

Enhancements in pricing are expected to become noticeable toward the latter part of 2025 once inventory levels deplete and purchasers reengage with the spot market.

A detailed look at a contemporary car showcasing its smooth contours and opulent design.

Our Methodology

To create this compilation, we started with a preliminary roster of 20 EV battery companies. From these, we chose the top 12 based on their projected upward mobility as of April 29, 2025. Our selection criteria required each company’s stock to offer at least a 20% growth opportunity. These chosen firms are listed according to the degree of anticipated increase in value, from lowest to highest expected gain.

Why do we pay attention to the stocks that hedge funds accumulate? It's straightforward: our analysis indicates that mimicking the leading stock choices from premier hedge funds allows us to exceed market performance. Each quarter, our bi-monthly publication chooses 14 small-cap and large-cap stocks, achieving returns of 275% since May 2014, which surpasses its benchmark by 150 percentage points. see more details here ).

Stellantis N.V. (NYSE: STLA )

Analysts' Upside Potential as of April 29: 84.53%

Stellantis N.V. (NYSE:STLA) holds the sixth position amongst the largest companies in its sector. Most Promising Stocks With an upward potential of 84.53%, it emerged as the fourth-biggest automotive OEM based on vehicle sales in January 2021 following the merger between France’s Peugeot (PSA) and America’s Fiat Chrysler Automobiles (FCA). Its portfolio includes well-known marques such as Maserati, Fiat, Jeep, Chrysler, Ram, Peugeot, Citroën, Opel, and Alfa Romeo. This firm operates in over 30 countries, catering to customers in approximately 130 different markets worldwide. Over the past three consecutive years, the company has maintained double-digit adjusted operating profit margins.

Stellantis N.V. (NYSE:STLA) provides an extensive lineup of electric vehicles, encompassing both battery-powered models and hydrogen fuel-cell cars. Under their "Dare Forward 2030" plan, the firm aims to launch over 75 new battery-electric vehicle offerings by the year 2030.

In 2024, Stellantis N.V. (NYSE:STLA) demonstrated impressive inventory control by lowering U.S. dealership stocks from 430,000 units mid-year to 304,000 units by year-end, exceeding their target of keeping inventories below 330,000 units. Additionally, the corporation expanded globally through the launch of several cutting-edge models such as the Fiat Grande Panda, Citroën C3, Dodge Charger, Jeep Wagoneer S, Citroën C3 Aircross, and Opel Frontera. They also announced a EUR 300 million deal with Comau along with a dividend payout of EUR 0.68 per share, amounting to EUR 1.7 billion overall, illustrating their dedication to rewarding shareholders despite various difficulties. Their partnership with Chinese automaker Leapmotor proved successful; Leapmotor became profitable in Q4 2024 and saw an uptick in unit sales to 300,000.

Overall, STLA ranks 4th 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 STLA but that trades at less than 5 times its earnings, check out our report about this cheapest AI stock .

READ NEXT: 20 Top AI Stocks You Should Consider Buying Today and 30 Top Stocks to Purchase Currently as Recommended by Billionaires .

Disclosure: No conflicts of interest. This article was initially published at Insider Monkey .

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