13 Most Promising EV Stocks to Buy According to Hedge Funds

8. Albemarle Corporation (NYSE:ALB)

Number of Hedge Fund Holders: 32

Albemarle Corporation (NYSE:ALB) is an American specialty chemicals manufacturer that operates through three main segments which include lithium, bromine specialties, and catalysts. It has established itself as a significant player in the global lithium market, especially for EV batteries, while also leading advancements in flame retardant technologies and catalysts used in petroleum refining.

It serves a diverse range of sectors, including energy, automotive, electronics, and pharmaceuticals. The company provides lithium carbonate and lithium hydroxide products for several cathode applications, alongside tailored pre-lithiation solutions that advance energy storage when combined with silicon anodes.

The company also offers ultra-thin lithium metal anodes for improved energy density and lithium sulfide for solid-state electrolytes, boosting conductivity and safety. Additionally, the company supplies flame-retardant solutions for battery enclosures that ensure safety and durability. Its commitment to developing recycled lithium options supports a sustainable supply chain for the future of clean energy.

According to the company, Albemarle (NYSE:ALB) faces a mix of opportunities and challenges in the global market, especially within lithium battery and energy storage sectors crucial for EVs. The company expects a decline in net sales and profitability in 2024 if lithium prices remain low, although increased production capacity may help offset this.

In the Specialties segment, reduced demand in some areas may lead to lower sales, but a strong performance in pharmaceuticals and agriculture could balance this. The Ketjen business is expected to grow due to lower input costs and rising demand for hydroprocessing catalysts.

Moreover, the company is focused on cash generation, cost management, and optimizing growth investments while remaining open to acquisition opportunities that align with its strategic goal.

The evidence of cost management can be seen in the second quarter as Albemarle (NYSE:ALB) announced reductions in capital spending at its Kemerton site, aiming to save $200-300 million. Moreover, the company is reducing its 2024 capital expenditure by $300-400 million compared to 2023 levels.

With 32 out of 912 hedge funds bullish on the company stock in Q2, the company makes it to the 8th spot on our list of most promising EV stocks.