Investors who are looking to power up their portfolios may want to give battery stocks a closer look. Electric vehicles remain a hot commodity, and all of those vehicles rely on expensive EV batteries to operate.
However, batteries go far beyond powering EVs. Electric batteries assist industries and organizations that are looking to shift some of their resources into electric energy. Rising energy storage demand is another catalyst for battery-related stocks, as AI data centers gobble up an exorbitant amount of electricity and need backup power to maintain grid stability. Electric batteries may also become more prevalent in boating, aviation and trucks.
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For instance, electric vertical takeoff and landing aircraft (eVTOLs) are a new type of aircraft that uses electricity to take off and land. These aircraft are similar to helicopters, but they are quieter and more eco-friendly. They can also take off vertically, which eliminates the need for a runway.
These innovations are still in their early stages, and each will require batteries. Companies on the ground floor see their earnings skyrocket as the technology becomes more widely adopted. With that in mind, investors may benefit from monitoring these six battery stocks:
— Honeywell International Inc. (ticker: HON)
— Tesla Inc. (TSLA)
— Rio Tinto PLC (RIO)
— EnerSys (ENS)
— BYD Co. (OTC: BYDDY)
— Joby Aviation Inc. (JOBY)
Honeywell International Inc. (HON)
Honeywell specializes in aviation, automation, performance materials and technology. The firm offers a wide range of renewable and energy storage solutions. Its cost-effective Battery Energy Storage System makes it easier for companies to handle all stages of battery usage and recycling. The technology helps businesses reduce utility bills and increase uptime and reliability.
Battery storage was one of the components that helped Honeywell report 8% year-over-year revenue growth in the second quarter of fiscal 2025. Honeywell’s sales reached $10.4 billion, while reported earnings per share came in at $2.45 for the quarter. EPS was at the top of the range of previous guidance.
Honeywell has regularly rewarded investors with stock buybacks and dividend distributions. The firm offers a generous 2.1% forward dividend yield. Honeywell has also increased its dividend 15 times since 2010. The annual dividend is $4.52 per share, marking a 4.6% increase compared with last year’s payout.
Honeywell shares are down by 1.3% year to date as of Aug. 4, but HON has returned 42% over the past five years and has more than doubled over the past decade.
Tesla Inc. (TSLA)
You can’t have a conversation about electric vehicles and EV batteries without bringing up Tesla. The company pioneered the concept and commercialized it to the tune of a nearly $1 trillion market cap.
The company’s greatest strength and weakness is its CEO, Elon Musk. His ability to manage multiple companies, capitalize on opportunities before others notice, and scale small companies into big ones is unmatched.
However, his political influence has generated ire from both left- and right-leaning voters. Left-leaning voters boycotted the company as Musk aligned with Trump, and right-leaning voters weren’t too pleased when Musk went on a public tirade against the president, which led to the duo’s political breakup.
Musk’s politics have impacted Tesla, and you can see it in the financials. Revenue dropped by 12% year over year in the second quarter, and net income plummeted by 16%. Tesla’s relatively poor performance in 2025 can set the stage for higher revenue growth rates in 2026, however. Cybercabs and humanoid robots can also push Tesla’s stock higher in the long run, but it will take time for these attractive catalysts to show up in financial results.
Musk sees a future where Optimus bots can make more than $10 trillion in revenue, and if that’s achieved, long-term investors would easily forgive the current missteps.
Rio Tinto PLC (RIO)
Rio Tinto is a British-Australian miner that digs out lithium, which is critical for EV batteries. However, the company offers more diversification since it also has mines for iron ore, copper, aluminum and a range of other minerals and materials.
The company recently made news by acquiring Arcadium Lithium for $6.7 billion, further expanding its market share. Rio Tinto operates in 35 countries and hires 57,000 employees, and it’s been operating for more than 150 years.
Rio Tinto aims to accelerate the decarbonization of its assets. The company is one of the leaders in the switch to renewable power and aims to run electric mobile fleets. Last year, Rio Tinto and BHP Group Ltd. (BHP) collaborated on battery-electric truck haul trials in the Pilbara in western Australia to advance this objective.
EnerSys (ENS)
EnerSys is down by 0.8% year to date but has rallied by 25% over the past five years. The company has a good history of raising its dividend, including a 6.7% hike last year, bringing the annual dividend from 90 cents per share to 96 cents. EnerSys has grown its dividend for 12 consecutive years.
The company is a global leader in stored energy solutions for industrial applications, and that includes the production of EV batteries. The electric vehicle boom is part of the reason why EnerSys delivered a 7% year-over-year increase in sales in Q4 FY25, to $906 million.
Meanwhile, diluted earnings per share jumped by 63% year over year. EnerSys also notched a 9.9% net profit margin.
EnerSys is working on several initiatives that can boost its market share in the battery industry. For instance, the company’s Wi-iQ recently became the new standard for all applicable Motive Power products sold in North America. This battery monitoring device delivers real-time analytics to optimize energy use, reduce costs and extend asset life.
BYD Co. (OTC: BYDDY)
BYD Co. is the Tesla of China, but it still has rising revenue. The company delivered a 36.4% year-over-year boost in its operating revenue in the first quarter of 2025 and more than doubled its net income.
Its electric vehicles rely on batteries, but the company doesn’t have to buy those batteries from competitors. BYD produces its own EV battery, known as the Blade battery.
Continuing the Tesla comparison, BYD is also entering the humanoid robots space, but it’s making more progress than Tesla. BYD plans to launch its humanoid robot product with a $10,000 price tag, with an estimated delivery start time in December 2025. It’s a solar-powered robot that knows how to plug itself into an outlet when it’s running on a low battery.
The robot is still in its early stages, so its effectiveness is unknown. However, BYD has taken the top spot in the EV market from Tesla, and it may repeat that trend with its upcoming humanoid robots.
Joby Aviation Inc. (JOBY)
Joby Aviation has been a roller coaster of a stock, but its ascent is pretty hard to ignore. The eVTOL maker has surged by 150.8% year to date. Anyone who bought the dip in April has seen their shares nearly quadruple in a few months. The stock has almost doubled over the past month as of Aug. 4.
What’s driving the momentum? Joby Aviation’s recent acquisition of Blade Air Mobility Inc.’s (BLDE) passenger business will help the company commercialize air taxis sooner. The acquisition gives Joby quicker access to key urban markets across the U.S. and Europe.
However, the company doesn’t have much news regarding revenue. Investors have to wait for the concept to become commercially viable before revenue arrives. The company still had some good things to say in the first quarter: Joby had another record-breaking quarter for its aircraft’s certification process, with new partnerships, a strong balance sheet and test flights with pilots onboard as some of the highlights.
Joby Aviation and its competitors rely on EV batteries, so that’s a good omen for the industry. Investors have been getting excited as Joby gets closer to the finish line, and in the best-case scenario, the company will be at the forefront of a transportation revolution.
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6 Best Battery Stocks to Buy and Hold originally appeared on usnews.com
Update 08/05/25: This story was published at an earlier date and has been updated with new information.
