12 Biggest Lithium Stocks to Buy According to Hedge Funds

3. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 36

Albemarle Corporation (NYSE:ALB) specializes in engineered specialty chemicals. Its Energy Storage division specializes in recycling, technical services, and lithium compounds. The company holds a strategic position within the EV supply chain on account of its dominance in the lithium market, with EV customers accounting for more than 80% of its sales. Albemarle’s portfolio is further diversified by its status as a pioneer in catalyst products and one of the top three bromine producers. As of 2020, Albemarle Corporation (NYSE:ALB) was the largest provider of lithium for electric vehicle batteries.

Truist Securities began coverage of Albemarle Corporation (NYSE:ALB) on January 27, giving it a Hold rating and a price target of $96. The analyst firm noted Albemarle’s proactive approach to mitigating the risks associated with a potential low-price environment. Albemarle’s decision to stop growth expenditures and pursue cost-cutting measures in the event of a market downturn is seen as a prelude to continuing operations. However, Truist thinks that the company’s 2025 and 2026 financial results might not live up to expectations.

During its Q3 2024 earnings call, Albemarle Corporation (NYSE:ALB) revealed that lower lithium prices had caused a sharp decline in net sales and earnings, resulting in a $1.1 billion loss and a $211 million drop in adjusted EBITDA. To address these issues, the company reported making strategic changes, including the reduction of capital expenditures by almost half for 2025 and introducing a new operating structure that should save $300 to $400 million.