12 Best EV Battery Stocks to Buy in 2025

4) Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 35

Albemarle Corporation (NYSE:ALB) is a critical player in the EV battery industry, mainly through its significant involvement in lithium production and supply. Truist initiated coverage of the company’s shares, providing a “Hold” rating and a price target of $96. As per the firm, Albemarle Corporation (NYSE:ALB)’s scale and relatively low-cost production footprint place it well for the long term to capitalize on growth potential in the broader lithium market.

Elsewhere, Morningstar expects that lithium demand will continue to grow at a double-digit pace each year as a result of increasing global EV sales and the buildout of utility-scale batteries. As supply growth slows, the firm expects demand to outpace supply, resulting in higher prices in 2025. As a low-cost lithium producer, it expects Albemarle Corporation (NYSE:ALB) to get through the pricing downturn and be well-positioned to benefit from higher long-term prices. The company’s strong and durable cost advantage in lithium and bromine production is expected to continue to act as a competitive advantage.

Morningstar further added that Albemarle Corporation (NYSE:ALB) possesses a cost advantage in lithium carbonate production because of its lucrative brine assets in the Salar de Atacama in Chile, which produces lithium at the lowest cost on a global basis, excluding royalties. Morningstar expects lithium prices to rebound and stay well above the marginal cost of production through at least the remainder of the decade. This will lead to excess profits and return on invested capital for Albemarle Corporation (NYSE:ALB).