Batteries Recharged, Lasers Locked: 2025’s Quiet Rebound in Electrification

Battery names are back on traders’ screens. Plug Power (PLUG), QuantumScape (QS), and Enovix (ENVX) have each staged sharp moves in 2025—driven by cost-cutting, tech milestones, and a broad risk-on tape. Meanwhile, the LiDAR cohort—Ouster (OUST), Hesai (HSAI), and Aeva (AEVA)—is benefiting from “physical AI” demand across autos, robotics, and smart infrastructure.

Batteries: Momentum with Milestones (and Caveats)

QuantumScape (QS): The solid-state hopeful surged on manufacturing advances (“Cobra” process) and a live demo with Volkswagen’s PowerCo (Ducati prototype), reinforcing commercialization optics even as revenue remains ahead of reality.

Plug Power (PLUG): A violent rebound hasn’t erased fundamentals—negative margins and cash burn linger—so position sizing matters.

Enovix (ENVX): Momentum improved into Q4 with better technicals and strong revenue growth; investors will watch upcoming results for proof of scale.

ETF read-through: Global X Lithium & Battery Tech (LIT) is up ~44% YTD, outpacing Natural Resources peers—evidence that battery exposure has re-caught a bid.

LiDAR: From AV Hype to “Physical AI” Demand

Ouster (OUST): Posting record shipments, improving margins, and expanding beyond autos (smart traffic, industrial, defense). Q2 revenue rose ~30% Y/Y to $35M; management leans into smart-infrastructure deployments.

Hesai (HSAI): The scale player: shipments topping 350k units in Q2 and delivering non-GAAP profitability, with plans to diversify manufacturing to mitigate tariff risk.

Aeva (AEVA): Strategic capital and manufacturing tie-ups (LG Innotek) plus product roadmap momentum fueled a multi-bagger YTD rally.

ETF read-through: LiDAR’s spread into automation and robotics shows up in ROBO (Robotics & Automation) and mobility ecosystems via HAIL (Smart Mobility). YTD: ROBO ~19%, HAIL ~29%.

Performance Snapshot (YTD, as of mid-Oct 2025)

Batteries: QS ~228%, PLUG ~75%, ENVX ~19%

LiDAR: AEVA ~253%, OUST ~176%, HSAI ~65%

ETFs: LIT ~44%, HAIL ~29%, ROBO ~19%.

Outlook: What Matters Next

Earnings & Execution: Watch QS for pilot scaling updates, ENVX for manufacturing throughput, and PLUG for margin/cash-flow discipline. OUST’s Nov. 4 call will color the “physical AI” backlog story.

Policy & Tariffs: LiDAR supply chains remain geopolitically exposed; Hesai is pushing overseas capacity to blunt tariff shocks.

Demand Mix: Even if EV unit growth is choppy, LiDAR’s non-auto use cases (traffic management, robotics, industrial automation) provide diversified demand—supportive for HAIL and ROBO baskets.

Battery Theme: If LME lithium stabilizes and OEM roadmaps hold, LIT’s leadership can persist, but stock-picking risk (pre-revenue platforms vs. profitable materials) stays high.

Bottom Line

Electrification is working again—quietly and selectively. For diversified exposure, LIT, HAIL, and ROBO offer cleaner factor bets than single names. For stock pickers, QS/ENVX screen as “show-me” execution stories, PLUG is a high-beta turnaround, and LiDAR leaders (OUST/HSAI/AEVA) are riding secular automation—just remember the capital-intensity and policy overhangs. Tight risk controls, staggered entries, and using ETFs for core exposure with satellites in high-conviction names is the competitive way to play it.

Quickly compare LIT, HAIL, ROBO side by side with our ETF Compare Tool