There is little reason to invest in Chinese companies right now.

Political clouds, issues with Taiwan, a lack of transparency in accounting and general negative sentiment are all reasons to stay away.

I’ve been against investing in China directly for almost 25 years. Sure, I’ll trade Chinese stocks now and again. But invest in them? No way!

In fact, my views on the subject have been so strong that the Chinese denied me entry to the country unless I signed an affidavit saying that I would not write anything that portrayed the nation in a negative light.

But here’s the undeniable thing: China is growing, and so is the country’s thirst for automobiles… especially cheap electric cars.

The chart below shows that electric vehicle (EV) demand is expected to more than double from current levels… and quickly. If prices continue to come down, demand could take off even faster.

There is currently a mini electric car on the Chinese market that sells for around $5,000.

So should we invest in a Chinese auto manufacturer? No way. The competition is cutthroat, and it’s only going to increase.

And, as I said earlier, I don’t want to invest in any Chinese companies.

So how can we profit from the Chinese EV market?

The answer is to buy the company that mines the critical elements for the cars – all of the cars.

Lithium miner Albemarle (ALB) has seen its shares get rocked recently.

A dip in demand during China’s COVID lockdowns at the end of 2022 caused the company to fall short of estimates. That makes now an ideal time to pick up the shares at a discount.

Don’t just take my word for it. The insiders at this profitable company have been picking up a ton of shares recently.

They are confident in the futures of lithium, EVs and China. Albemarle is a major supplier of lithium to Chinese automakers. Check out the insider buying graphic below.

YOUR ACTION PLAN

Albemarle (NYSE: ALB) is gaining steam. Shares of this specialty chemicals company have returned +7.9% over the past month, versus the Zacks S&P 500 composite’s +5% change. It’s also been one of the most searched-for stocks on the Zacks Investment Research site, which tells us investors are starting to realize its massive potential. As more traders get involved, we could be looking at further upside.

Click here to see exactly how I’m playing this stock in Trade of the Day Plus.