One million and 100,000. That’s the number of batteries that will go into those trucks put out by both companies combined. That’s to say nothing of the number of replacement batteries those trucks will need, nor the spare parts that suppliers and gas stations will keep on hand.
So, as an investor, ask yourself this: Which number would you rather invest in?
- One million
- 1.1 million plus spares, replacements and more
“Perhaps,” suggests Real Money’s Ed Ponsi, “the answer can be found in lithium, a key component of EV batteries.”
As EVs become more prevalent, demand for lithium is expected to outstrip supply.
That’s great news for companies such as Albemarle Corp. (ALB) – Get Report , a Charlotte-based specialty chemicals company. On its website, Albemarle calls itself “an industry leader in lithium and lithium derivatives.”
In other words, Albemarle makes the raw materials that will go into every one of the electric vehicles about to hit the market. And every indication suggests that this market will be huge.
For investors who want to buy into this industry in general, this is exactly the kind of backbone and infrastructure play that gives exposure without committing to a specific company. Even better, Albemarle has shown strong performance in the past six months, with a bullish trend that suggests growth in both the short and the long run.
Albemarle shares are up more than 31% so far this year.