Electric vehicle stocks have corrected in the near term with factors like competition and macroeconomic headwinds impacting sentiments. However, in terms of EV adoption, the global markets are still in an early stage. In the coming years, quality EV companies will create massive value. Among the various investment options, lithium stocks are worth considering for millionaire-making potential.

As the global demand for batteries increases, lithium is likely to trend higher. The recent plunge is therefore a good opportunity to consider exposure to undervalued lithium stocks. To put things into perspective, the global demand for lithium-ion batteries was estimated at 700GWh in 2022. It’s expected that by the end of the decade, demand will surge to 4.7TWh. Clearly, this will be associated with a surge in demand for lithium.

An important point to note is that the supply-gap for lithium is expected to be acute by 2035. The plunge in lithium price is therefore a golden opportunity to accumulate quality lithium stocks for the long term. Even in the near term, I expect a big rally for some of the best lithium stocks from deeply oversold levels.

Lithium Americas (LAC)

Sentiments for Lithium Americas (NYSE:LAC) stock has turned positive with a rally of 40% from oversold levels in the last one month. However, LAC stock remains undervalued and I expect 100% returns from current levels of $6 in the next 12 months.

In a big news, Lithium Americas has received a conditional loan commitment from the U.S. Department of Energy for $2.26 billion. This will help in financing the construction of for phase of the Thacker Pass project.

It’s worth mentioning here that the Thacker Pass has the largest known measured and indicated lithium resource in U.S. The asset has an after-tax net present value of $5.7 billion.

With the financing commitment, the Company is targeting 2027 for phase one of production. Once production commences, EBITDA and cash flows are likely to be robust. Further, there will be long term value creation visibility with the mine life being 40 years.

Albemarle Corporation (ALB)

Albemarle Corporation (NYSE:ALB) is another attractive name among lithium stocks that looks undervalued. ALB stock has witnessed a correction of almost 50% in the last 12 months. With strong fundamentals and ambitious growth plans, the stock is worth considering at current levels.

The first point to note is that Albemarle has a strong balance sheet to navigate current headwinds. The Company ended 2023 with a liquidity buffer of $1.8 billion. The recent equity offering of $2 billion will further improve the liquidity profile. Albemarle is also targeting to achieve long term leverage of less than 2.5.

To conserve cash, Albemarle has reduced capital expenditure for the current year. This, coupled with other cost cutting measures is likely to unlock $750 million of cash flows.

However, the Company continues to guide for 20% CAGR in lithium sales volume through 2027. Once lithium starts trending higher, it’s likely that Albemarle will go aggressive on lithium conversion capacity expansion.

Piedmont Lithium (PLL)

Piedmont Lithium (NASDAQ:PLL) has plunged by almost 80% in the last 12 months. PLL stock looks deeply oversold and I expect a strong reversal rally relatively soon.

It’s worth noting that Piedmont already has a producing asset in Quebec. The Company expects 113,000tpy of spodumene concentrate from the asset. Further, Piedmont has a strong pipeline of project development. Once the expansion is completed, revenue and EBITDA are likely to surge.

To put things into perspective, the Company expects to increase production to 525,000tpy of spodumene concentrate. This is subject to all current assets being in production. If the production upside is associated with a surge in lithium price, I expect PLL stock to go ballistic.

Coming back to valuations, Piedmont commands a current market valuation of $262 million. In comparison, the Ghana asset has an after-tax net present value of $1.3 billion. Further, Carolina and Tennessee assets have a combined after-tax net present value of $4.5 billion. Clearly, PLL stock is massively undervalued.

On the date of publication, Faisal Humayun did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.