Electric vehicle (EV) stocks have been among the most popular investment options for investors over the last few years. The industry performed extremely well on the back of a higher global EV adoption rate. Approximately 9% of global car sales were EVs in 2021, up from 4.1% in 2020 and 2.5% in 2019. This makes EV stocks a good investment for value investors to look into.

Another positive for EV stocks is that strong growth is likely to continue. In particular, there is government focus on reducing carbon emissions across nations. In the United States, President Joe Biden aims to have 50% of vehicles electric by 2030.

As the EV industry is still young and growing, most of the pure-play companies do not pay dividends. Hence, income-seeking investors should look to invest in original equipment manufacturers that are making a major shift toward EVs.

Let’s take a look at these three EV companies from a value investor’s standpoint:

EV Stocks: Ford Motor (F)

Ford Motor (NYSE:F) is the third-largest automaker in the U.S. with 13.5% market share as of the first quarter (Q1) of 2022. The company has survived even in the most turbulent times and maintained its dominant share in the industry.

The management seeks to maintain its position in the industry by investing in innovative technologies. Ford announced its plan to spend $50 billion in expanding its manufacturing capabilities for electric vehicles by 2026. The company aims to produce two million EVs globally. It is expected that Ford will have 50% of its cars electric by 2030.

The company also announced that it is forming a strategic alliance with Google (NASDAQ:GOOG,NASDAQ:GOOGL) to modernize Ford production. The partnership will incorporate artificial intelligence to enhance customer experience.

As of May 2022, the company’s electric car sales have been doing quite well. EV sales during the month increased four times faster than the overall U.S. EV segment, up 221.5% year-over-year to 6,254 units.

Based on the trailing twelve-month non-GAAP earnings per share (EPS), the company is currently trading at a multiple of 9.59x, which is a discount compared to the sector average of 10x. The average price target on the stock is $18.81, representing an upside potential of 55.07% from the current price. F stock’s dividend yield is 3.56%.

BYD Company Limited (BYDDY)

Based in China, BYD Company Limited (OTCMKTS:BYDDY) is one the leading manufacturers of electric and hybrid vehicles. The company also makes lithium-ion batteries and electronics such as smartphones, notebooks, PCs, and medical devices.

More than 95% of the company’s sales are derived from EVs. Management aims to completely scrap production of internal combustion engine vehicles.

Over the last five years, BYD has been growing at an impressive double-digit compounded annual rate of 18.4%. It is the largest seller of new energy vehicles (NEVs) in the Chinese market, with sales approaching more than 1 million units.

In 2021, its top-selling electric models include Qin Plus DM, Han, Song DM, Tang SUV, and Yuan. The company’s strategy to offer lower-priced NEV models have made it popular among masses in China.

BYD now intends to enter international markets, especially Europe. Other markets planned include India, Australia, Japan, and Latin America. The company is already manufacturing and selling electric buses in the U.S.

Warren Buffett’s firm Berkshire Hathaway (NYSE:BRK-B) holds a 7.7% stake in the company. BYD stock trades at a price-to-sales ratio of 2.8x, lower than its closest competitors Tesla (NASDAQ:TSLA) which stands at 11.3x, Lucid Group (NASDAQ:LCID), which stands at 237.6x, NIO (NYSE:NIO), which stands at 5.3x, Li Auto (NASDAQ:LI), which stands at 5.9x, and XPeng (NYSE:XPEV), which stands at 5.6x.

The company’s consistent track record of solid growth and a dividend yield of of 0.04% combined with a discounted valuation makes it attractive at the current price.

EV Stocks: Albemarle Corporation (ALB)

Albemarle Corporation (NYSE:ALB) is the largest producer and seller of specialty chemicals. The company’s products include lithium, bromine and catalysts.

Rising demand for lithium that helps in production of lithium-ion batteries used for powering EVs has significantly benefited companies like Albemarle. The company has been reporting strong results and has already raised the guidance twice after it Q1 2022, total revenues increased 36%, led by the strength in its lithium and bromine businesses. Full-year sales are expected to increase in the range of 74% to 86% to $5.8 billion to $6.2 billion. Adjusted EBITDA should rise between 153% and 187%. Cash from operations are expected to be positive and increase between 60% and 147% to $550 million and $850 million.

The primary reason for the revised guidance has been Albemarle’s ability to renegotiate variable contracts for higher prices with lithium customers. The lithium business accounted for almost 41% of the company’s total revenue and 55% of its EBITDA. Average realized pricing is now expected to be up 140% from 100% estimated earlier.

Given Albemarle’s dominant position in the industry, it should be able to maintain its pricing power going forward, which should maintain growth momentum.

I expect demand for lithium products will continue rising given a need for a cleaner and greener environment. The company is cash rich and has been consistently paying a dividend over the last 28 years.

On the date of publication, Sakshi Agarwalla did not have (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.