8 Most Undervalued EV Stocks to Buy According to Hedge Funds

4. Albemarle Corp. (NYSE:ALB)

Forward P/E Ratio as of March 7: 18.45

Number of Hedge Fund Holders: 36

Albemarle Corp. (NYSE:ALB) provides energy storage solutions and plays a crucial role in the EV industry by supplying key lithium compounds. Through its Energy Storage segment, the company offers lithium carbonate and hydroxide, which are essential components for EV batteries. It also offers recycling services for lithium-containing materials.

The company’s Energy Storage segment, which is crucial for EV battery production, saw a 26% year-over-year sales volume increase in 2024. This growth came from project ramp-ups and increased spodumene sales. Spodumene is a mineral that serves as a source of lithium. For 2025, the company’s outlook is based on varied lithium market prices: $9, $12-$15, and $20 per kilogram LCE. Albemarle Corp. (NYSE:ALB) has also improved how much lithium it gets from the site in Chile. The new processing plants in China (Meishan) and Australia (Kemerton) are also increasing production. 50% of the company’s lithium salts are sold via long-term contracts.

Albemarle Corp. (NYSE:ALB) remains optimistic about the EV market’s long-term growth and noted a 25% increase in global EV registrations in 2024. It’s adapting to market fluctuations by optimizing production and focusing on cost efficiency. Earlier on February 19, Scotiabank reduced its price target on the company to $75 from $85, maintaining a Sector Perform rating. Analysts predict continued lithium oversupply and stable prices for the year.