10 Most Oversold EV Stocks to Buy According to Analysts

7. Albemarle Corporation (NYSE:ALB)

% Decline Over 1 Year: ~33.3%

Average Upside Potential: ~27.03%

Number of Hedge Fund Holders: 36

Albemarle Corporation (NYSE:ALB) is a critical player in the EV battery industry, mainly via its involvement in lithium production and supply. The company’s vertically integrated structure and low-cost assets continue to provide it with a competitive edge in the broader industry. Albemarle Corporation (NYSE:ALB)’s cost-cutting initiatives and productivity improvements can enhance its competitive position in the lithium market. It has proactively re-phased growth investments and reduced 2024 capex by more than $450 million YoY. The sustained position in the lithium market is expected to fuel growth for the company amidst the accelerated adoption of EVs.

Therefore, Albemarle Corporation (NYSE:ALB)’s growth is expected to stem from higher demand for energy storage solutions and EVs. The company has highlighted that global EV demand grew by 25% YoY in 2024, which was led by China. Notably, US EV sales have been benefitting from model availability and affordability, opines Albemarle Corporation (NYSE:ALB). While the near-term market remains dynamic, the long-term lithium demand drivers are intact, with battery costs below $100/kWh pack average, aiding EV affordability. The company also mentioned that grid demand continues to outperform, up 49% YoY in 2024, courtesy of installations in the US and China.

Therefore, as a leading supplier of lithium, Albemarle Corporation (NYSE:ALB) appears to be well-placed to benefit from long-term contracts with EV manufacturers. This can result in enhanced market position and revenues.