We recently published a list of 12 Best Battery Stocks to Buy According to Billionaires. In this article, we are going to take a look at where Albemarle Corporation (NYSE:ALB) stands against other best battery stocks to buy according to billionaires.

Batteries are essential to our global energy landscape, especially nowadays, as they contribute heavily in accomplishing clean energy goals. These batteries power numerous electric vehicles (EVs) in the transport sector; on the other hand, they play a crucial role in the power sector, where energy storage is growing faster than any other clean technology, supporting the renewable energy shift.

Furthermore, the global battery industry is facing rapid growth due to lower costs and higher demand. A critical point was reached when prices of battery packs for battery electric vehicles (BEVs) dropped below $100 per kilowatt-hour. As a result of this cost-competitiveness, these batteries became highly demanded for internal combustion engine (ICE) cars. Thus, according to The Business Research Company, the EV battery market is expected to jump from $66.43 billion in 2024 to $87.78 billion in 2025, showing a 32.1% yearly growth rate.

This growth majorly stems from decreasing battery mineral costs, especially lithium. The World Economic Forum reported that lithium-ion battery costs have dropped over 90% in the past decade, with a 40% drop in 2024 alone. The IEA points out that a rise in manufacturing and improved production methods drove the market, with global battery production hitting 3 TWh in 2024. Accordingly, this has sped up EV adoption, with S&P Global Mobility forecasting 15.1 million battery electric vehicle sales in 2025. These sales would be 30% higher than the 2024 level and would make up 16.7% of global light vehicle sales.

Moving on to China, which is a lead battery producer, we see that it makes up 75% of the total global production, as reported by Reuters. China’s vertically integrated supply chain, from refining minerals to producing batteries, has allowed manufacturers to scale up efficiently and reduce costs. Furthermore, Chinese companies pioneered the shift to lithium-iron-phosphate (LFP) batteries, currently making up nearly half of the global EV market. These batteries cost about 30% less than lithium nickel cobalt manganese oxide (NMC) substitutes while offering similar performance.

On the other hand, the U.S. energy storage industry faces challenges as new tariffs on Chinese battery parts increase costs. With lithium battery tariffs set to reach 25% by 2026, along with other rising import duties, project costs are climbing. Thus, Wood Mackenzie predicts slower storage installations, with yearly growth dropping to 10% between 2025-2028, down from 25% in 2024. As a result, lithium demand is likely to be affected, adding uncertainty to battery prices globally.

Besides lithium batteries, hydrogen is emerging as another clean energy alternative. KPMG reported rising investment in fuel cell technology, establishing hydrogen as a long-term player in clean energy. A 2024 IDTechEx report estimated that only 4% of zero-emission vehicles (ZEVs) will use hydrogen in the next two decades. However, at the same time, it predicts that about 19% of zero-emission trucks could be hydrogen-powered by 2044. According to KPMG’s Fuels of the Future study, electric batteries remain the leading low-carbon technology, preferred by 48% of experts. Yet 16% of experts note the potential of hydrogen fuel cells as a comparable alternative.

Therefore, we can see that the battery market is shifting rapidly as costs drop, technology improves, and market competition intensifies. Falling lithium prices and economies of scale drive further growth, while hydrogen’s increasing adoption points to a multi-technology energy future. Considering this momentum of electrification, battery stocks offer strong investment potential in the evolving clean energy market.

Our Methodology

We analyzed Insider Monkey’s exclusive database of billionaire stock holdings to compile our list of the 12 Best Battery Stocks to Buy According to Billionaires. We selected the top 12 stocks based on the number of billionaire investors as of Q4 2024. For the stocks with the same number of billionaire holdings, we have used the total value of billionaire holdings as a secondary metric to rank the stocks.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Our quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 373.4% since May 2014, beating its benchmark by 218 percentage points (see more details here).

Albemarle Corporation (NYSE:ALB)

Number of Billionaire Investors: 11

Albemarle Corporation (NYSE:ALB) is a major force in the global energy storage sector, making essential lithium compounds for EV batteries and renewable energy storage. The company operates through three segments: Energy Storage, Specialties, and Ketjen. Furthermore, Albemarle’s lithium carbonate and hydroxide products are significant for battery makers to meet the rapidly rising demand for electric vehicles and grid storage solutions.

For Q4 ended December 31, 2024, Albemarle Corporation (NYSE:ALB) posted a revenue of $1.2 billion, which was a year-over-year decrease. This decrease was driven by a decline in the lithium prices. Still, adjusted EBITDA reached $251 million, with improvements recorded in all of the company’s segments.

Moreover, net sales totaled $5.4 billion for the full year, bolstered by a 26% YoY increase in lithium sales volumes. As a result of it, the company generated $702 million in operating cash flow, beating its target while cutting corporate costs and boosting cost efficiencies.

Albemarle Corporation (NYSE:ALB) is maintaining its financial stability through optimization of its lithium conversion network. The company plans to place its Chengdu lithium facility on care and maintenance by mid-2025, while making adjustments to its Qinzhou site’s production.

Despite the ongoing challenges across the market, Albemarle expects a slight volume increase in 2025, due to the progress of new projects and stable contract commitments. This is evident through the fact that the company was able to secure a $350 million customer prepayment for lithium sales over the next five years.

As lithium remains a crucial part of the EV supply chain, Albemarle Corporation (NYSE:ALB) is adamant about gaining long-term demand for battery materials as it puts confidence in its cost-cutting strategies and improved efficiency. Thus, Albemarle ranks among the best battery stocks.

Overall, ALB ranks 7th on our list of best battery stocks to buy according to billionaires. While we acknowledge the potential of ALB, our conviction lies in the belief that certain AI stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ALB but that trades at less than 5 times its earnings, check out our report about the cheapest AI stock.

READ NEXT: 20 Best AI Stocks To Buy Now and 30 Best Stocks to Buy Now According to Billionaires

Disclosure: None. This article is originally published at Insider Monkey.