We recently compiled a list of the 15 Best EV Stocks To Buy According to Billionaires. In this article, we are going to take a look at where Albemarle Corporation (NYSE:ALB) stands against the other EV stocks.
The year 2024 marked a significant milestone for environmentally friendly vehicles in the US. On January 16, 2025, CNBC reported that for the first time, sales of all-electric vehicles and hybrid models made up 20% of all new car and truck sales. Motor Intelligence reported that over 3.2 million electrified vehicles were sold last year. This included 1.9 million hybrid vehicles and 1.3 all-electric vehicles.
Traditional vehicles with gas or diesel engines continued to dominate the market, accounting for 79.8% of sales. However, this marked the first time their share fell below 80% in modern automotive history.
READ ALSO: 10 Cheap Technology Stocks to Buy According to Hedge Funds and 10 High Growth Energy Stocks To Invest In.
In the US, the EV market is very competitive. Out of 68 mainstream electric models tracked by Kelley Blue Book, 24 models posted an increase in sales compared to the previous year while 27 models experienced a decrease in sales volume. Additionally, 17 new models were introduced to the market.
There is not enough clarity as to how sales of all-electric and hybrid electric vehicles will perform in 2025. This uncertainty is partly due to pending potential actions by the Trump administration. However, Cox Automotive expects that 2025 will set another record for EV sales, with EVs accounting for about 10% of new vehicle sales. Including hybrids, Cox Automotive expects one out of every four vehicles sold to be electrified in 2025.
Methodology
To compile our list of the 15 best EV stocks to buy according to billionaires, we looked for the biggest EV companies. We reviewed our own rankings, financial media reports, ETFs, and various online resources to compile a list of the best EV stocks. Next, we focused on the top 10 EV stocks most favored by billionaires. Data for the number of billionaire investors for each stock was taken from Insider Monkey’s Q4 2024 database. Finally, the 15 best EV stocks to buy were ranked in ascending order based on the number of billionaires holding stakes in them as of Q4 2024.
Additionally, we mentioned the hedge fund sentiment surrounding each stock, which was taken from Insider Monkey’s Q4 2024 database of more than 1,000 elite hedge funds.
Why do we care about what hedge funds do? 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).
An assembly line of lithium-ion batteries for energy storage solutions with workers in the background.
Albemarle Corporation (NYSE:ALB)
Number of Billionaire Investors: 11
Number of Hedge Fund Holders: 36
Albemarle Corporation (NYSE:ALB) is an American specialty chemicals manufacturing company that supplies lithium and bromine and serves customers in approximately 70 countries. The company is one of the world’s largest providers of lithium for electric vehicle batteries. According to billionaires, Albemarle Corporation (NYSE:ALB) is one of the best EV stocks to invest in.
The company is positioning itself to capitalize on the demand for lithium, which is crucial for the global energy transition that is progressing steadily. Albemarle Corporation (NYSE:ALB) noted that EV registrations increased in 2024 by 25% year-over-year. This growth was driven by China, where demand increased 37% year-over-year driven by balanced subsidies for battery EVs and plug-in hybrids. China now accounts for 65% of the global market demand. Albemarle Corporation (NYSE:ALB) also noted that global battery costs have dropped below $100 per kilowatt hour to support EV affordability and the long-term growth potential of the industry.
The corporation is making strategic moves to capitalize on these growth opportunities. Albemarle Corporation (NYSE:ALB) maintains a strong presence in the lithium supply chain and is currently focused on optimizing its lithium conversion network. By identifying opportunities and improving production efficiency to meet market demands, Albemarle Corporation (NYSE:ALB) is looking to position itself for long-term growth. The company reported that it achieved record production at its La Negra lithium carbonate plant in Chile and the Meishan lithium hydroxide plant in China in Q4 2024.
Overall, ALB ranks 6th on our list of the cheap tech stocks to buy according to hedge funds. While we acknowledge the potential of ALB as an investment, our conviction lies in the belief that some 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.
