11 Best Lithium and Battery Stocks To Invest In

2. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 35

Albemarle Corporation (NYSE:ALB) specializes in engineered specialty chemicals. Its Energy Storage segment focuses on lithium compounds, technical services, and recycling. The Specialties segment provides bromine-based chemicals, lithium specialties, and cesium products for the chemical and pharmaceutical sectors, as well as zirconium, barium, and titanium products for pyrotechnics.

The Ketjen segment delivers clean fuel technologies, catalysts for refining processes, and performance catalyst solutions. The company serves several industries, including energy storage, petroleum refining, consumer electronics, automotive, construction, and pharmaceuticals.

Albemarle (NYSE:ALB) reported its Q3 2024 results on November 6, and it achieved $1.4 billion in net sales, down 41% year-over-year due to lower lithium pricing. A net loss of $1.1 billion, or $9.45 per diluted share, included an $861 million pretax charge for asset write-offs. Adjusted EBITDA was $211 million, reflecting lower lithium prices but partially offset by reduced costs and higher volumes in energy storage and specialties.

However, the company is implementing a new operating structure targeting $300–$400 million in cost improvements, achieved by reducing redundancies, lowering management layers, and optimizing manufacturing. Workforce reductions of 6%-7% will bring total job cuts this year to nearly 1,000. Albemarle (NYSE:ALB) plans to cut 2025 capital expenditures by 50%, saving over $800 million, while focusing on safety, maintenance, and phased growth.

Moreover, based on the earnings report, RBC Capital raised Albemarle’s (NYSE:ALB) price target from $108 to $133, maintaining an Outperform rating. The firm noted that the company showed strong Q3 results, with significant growth in Energy Storage, improved Specialties earnings, and management holding its $12k-15k per ton lithium outlook despite lower prices due to major cost improvements.