We recently published a list of 12 Best Battery Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Lucid Group, Inc. (NASDAQ:LCID) stands against other best battery stocks to buy according to billionaires.
Batteries are essential to our global energy landscape, especially nowadays, as they contribute heavily in accomplishing clean energy goals. These batteries power numerous electric vehicles (EVs) in the transport sector; on the other hand, they play a crucial role in the power sector, where energy storage is growing faster than any other clean technology, supporting the renewable energy shift.
Furthermore, the global battery industry is facing rapid growth due to lower costs and higher demand. A critical point was reached when prices of battery packs for battery electric vehicles (BEVs) dropped below $100 per kilowatt-hour. As a result of this cost-competitiveness, these batteries became highly demanded for internal combustion engine (ICE) cars. Thus, according to The Business Research Company, the EV battery market is expected to jump from $66.43 billion in 2024 to $87.78 billion in 2025, showing a 32.1% yearly growth rate.
This growth majorly stems from decreasing battery mineral costs, especially lithium. The World Economic Forum reported that lithium-ion battery costs have dropped over 90% in the past decade, with a 40% drop in 2024 alone. The IEA points out that a rise in manufacturing and improved production methods drove the market, with global battery production hitting 3 TWh in 2024. Accordingly, this has sped up EV adoption, with S&P Global Mobility forecasting 15.1 million battery electric vehicle sales in 2025. These sales would be 30% higher than the 2024 level and would make up 16.7% of global light vehicle sales.
Moving on to China, which is a lead battery producer, we see that it makes up 75% of the total global production, as reported by Reuters. China’s vertically integrated supply chain, from refining minerals to producing batteries, has allowed manufacturers to scale up efficiently and reduce costs. Furthermore, Chinese companies pioneered the shift to lithium-iron-phosphate (LFP) batteries, currently making up nearly half of the global EV market. These batteries cost about 30% less than lithium nickel cobalt manganese oxide (NMC) substitutes while offering similar performance.
On the other hand, the U.S. energy storage industry faces challenges as new tariffs on Chinese battery parts increase costs. With lithium battery tariffs set to reach 25% by 2026, along with other rising import duties, project costs are climbing. Thus, Wood Mackenzie predicts slower storage installations, with yearly growth dropping to 10% between 2025-2028, down from 25% in 2024. As a result, lithium demand is likely to be affected, adding uncertainty to battery prices globally.
Besides lithium batteries, hydrogen is emerging as another clean energy alternative. KPMG reported rising investment in fuel cell technology, establishing hydrogen as a long-term player in clean energy. A 2024 IDTechEx report estimated that only 4% of zero-emission vehicles (ZEVs) will use hydrogen in the next two decades. However, at the same time, it predicts that about 19% of zero-emission trucks could be hydrogen-powered by 2044. According to KPMG’s Fuels of the Future study, electric batteries remain the leading low-carbon technology, preferred by 48% of experts. Yet 16% of experts note the potential of hydrogen fuel cells as a comparable alternative.
Therefore, we can see that the battery market is shifting rapidly as costs drop, technology improves, and market competition intensifies. Falling lithium prices and economies of scale drive further growth, while hydrogen’s increasing adoption points to a multi-technology energy future. Considering this momentum of electrification, battery stocks offer strong investment potential in the evolving clean energy market.
Our Methodology
We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the 12 Best Battery Stocks to Buy According to Billionaires. We selected the top 12 stocks based on the number of billionaire investors as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the 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 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).
Is Lucid Group, Inc. (LCID) The Best Battery Stock to Buy According to Billionaires?
An engineer examining an electric vehicle design in a lab, showing the company's innovative battery systems.
Lucid Group, Inc. (NASDAQ:LCID) manufactures and sells high-end electric vehicles, alongside EV powertrains and battery systems. The company sells directly to consumers through its online website and retail stores while growing production in America and Saudi Arabia. Lucis’ leading technology stands out, with the Air Pure sedan achieving an industry-best 5.0 miles per kilowatt hour (mi/kWh), showcasing its exceptional battery energy density and performance.
Lucid Group, Inc. (NASDAQ:LCID) hit record deliveries for four straight quarters in 2024, with 71% growth year-over-year and 10,241 delivered electric vehicles. The company’s performance improved with better gross margins and working capital, as seen through year-end liquidity that reached $6.13 billion; this enhanced liquidity was partially boosted through a $1.75 billion public offering in October 2024.
Moreover, Lucid started off with the manufacturing of the Gravity SUV at its AMP-1 factory, delivering the first batch in December 2024. Furthermore, it also opened Gravity orders in the U.S. in November, also expanding to Canada and Saudi Arabia. Meanwhile, its midsize platform is under development, predicted to start production in late 2026 at both its U.S. and Saudi facilities.
For 2025, Lucid Group, Inc. (NASDAQ:LCID) plans to make about 20,000 vehicles, more than double its 2024 output. However, early 2025 deliveries might face limits due to capacity issues. Moreover, the company’s main concern is regulatory risks like IRA credit changes and tariffs that could hit gross margins by 7-12%. To mitigate these cost pressures, Lucid is localizing its supply chain. While it has agreed to deliver up to 100,000 vehicles to Saudi Arabia, North American deliveries should grow in the coming quarter. As such, Lucid Group, Inc. (NASDAQ:LCID) is among the best battery stocks.
Overall, LCID ranks 9th on our list of best battery stocks to buy according to billionaires. While we acknowledge the potential of LCID, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than LCID but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.
