Electric vehicle (EV) demand is expected to remain robust, prompting investors to explore opportunities in the battery sector. Despite some market fluctuations and policy uncertainties, the long-term prospects for EV battery makers appear promising. While certain government programs may face challenges, industry analysts project substantial growth in battery demand for electric vehicles over the next decade.
Investors should consider battery stocks that may benefit from the ongoing growth in the EV market. These stocks have the potential to capitalize on market opportunities, potentially generating returns for long-term investors. Here are several battery stocks that could be worth watching:
- Honeywell International Inc. (HON)
- Tesla Inc. (TSLA)
- Enphase Energy Inc. (ENPH)
- Rio Tinto Group (RIO)
- Enovix Corp. (ENVX)
- EnerSys (ENS)
Note: Implied upside/downside based on the Feb. 14 closing price and Wall Street analysts’ consensus 12-month target price on TipRanks.com.
Honeywell International Inc. (HON)
Honeywell (HON) operates in multiple sectors, including aviation, automation, and performance materials. The company is also a player in renewable and energy storage solutions. Its cost-effective Battery Energy Storage System (BESS) is designed to help companies manage all phases of battery use and recycling. This technology can help businesses lower utility bills and improve reliability.
Battery storage contributed to Honeywell’s 5% year-over-year revenue growth in fiscal year 2024, with sales reaching $38.5 billion. The company reported earnings per share of $8.71 for the year. Honeywell has a history of returning capital to shareholders through stock buybacks and dividends, with a forward dividend yield of 2.2%. The company has increased its dividend 15 times since 2010.
Tesla Inc. (TSLA)
Tesla (TSLA) has become a leader in the EV market. The company’s Powerwall home battery system stores energy from solar panels, providing backup power and enabling consumers to reduce reliance on the grid. Tesla’s energy generation and storage revenue more than doubled year-over-year to reach $3.1 billion in the fourth quarter.
Enphase Energy Inc. (ENPH)
Enphase Energy (ENPH) offers solar generation, storage, and energy management solutions. Their IQ EV Charger helps homeowners reduce energy costs by integrating with Enphase’s solar and battery systems. The company recently expanded its operations to Europe. Enphase’s investor presentation in February 2025 indicated the U.S. EV market is expanding, creating opportunities for investors.
Rio Tinto Group (RIO)
Rio Tinto (RIO) is a mining company involved in the extraction of lithium, crucial for EV batteries. The company also mines other materials, giving it diversification. Rio Tinto recently acquired Arcadium Lithium for $6.7 billion, further expanding its market share. The company is working on its decarbonization strategy.
Enovix Corp. (ENVX)
Enovix (ENVX) manufactures lithium-ion batteries. The company’s revenue increased significantly year over year. Enovix recently opened a new facility in Malaysia.
EnerSys (ENS)
EnerSys (ENS) is a provider of stored energy solutions for industrial applications, including EV batteries. EnerSys reported a 5% year-over-year increase in sales and a 22% jump in adjusted earnings per share in FY2025 Q3.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Investors should conduct their own research and consult with a financial advisor before making investment decisions.
