The alternative energy space has come under pressure recently amid concerns about a potential slowdown in demand in China. That may be true in the short-term. However, rising electric vehicle (EV) demand will create a long-term growth story, making these three lithium stocks to buy good choices to profit from the current correction.

Specifically, Chinese battery giant CATL is currently offering discounts on batteries. That’s a break from its usually rigid stance on pricing, and speaks to a potential further decline in the price of lithium in 2023.

However, for longer-term investors, this dip should be an opportunity. The trend remains in favor of electric vehicles, regardless of what happens over the next few months. Meanwhile, some quality lithium stocks have sold off sharply over the past few weeks.

Albemarle Corp (ALB)

Hailing from Charlotte, North Carolina, Albemarle (NYSE:ALB) is the world’s largest lithium producer. It has substantial assets in Chile, the United States, and Australia. Further to that last point, Albemarle recently announced a $3.4 billion offer for Australia’s Liontown Resources.

Needless to say, Albemarle is a key player in any potential electrification future. Its lithium will be vital in proving electrification solutions for EVs, connectivity, and health care, among other industries that heavily rely on next-generation batteries.

Albemarle has enjoyed tremendous growth with annual revenues jumping from $3.1 billion in 2020 to $7.3 billion last year. Analysts expect even further growth. The firm is also highly profitable, with shares going for just seven times forward earnings.

Albemarle could see profits dip if the downturn in the battery market continues. But this is a massive player with an international footprint that will play a role in the lithium market for years to come. ALB stock is down 15% over the past month, making for a great entry point for lithium investors.

Sociedad Química y Minera de Chile (SQM)

Sociedad Química y Minera de Chile (NYSE:SQM), or SQM for short, is a leading Chilean chemical company. While it has a variety of products, its claim-to-fame comes from being one of the world’s largest lithium producers.

This is only natural, as Chile has some of the world’s largest lithium reserves. It has strong rule of law and has among the most economic freedom in the Americas, which makes it a great place for doing business, compared to most other potential lithium-mining venues.

SQM grew its revenues from $1.9 billion in 2019 to $10.7 billion last year. This shows the firm’s incredible ability to capture upside from the rise in demand for lithium specifically and commodity prices more generally.

It’s true that revenues may dip in 2023 given the current weakness in the lithium market. However, shares are trading for merely six times forward earnings, and should be set for a significant rally once Chinese demand issues work themselves out.

Panasonic Holdings (PCRFY)

Panasonic Holdings (OTCMKTS:PCRFY) offers investors another angle in the lithium stocks space. Instead of producing lithium itself, Panasonic is set to profit from the commercialization of lithium via batteries.

To that end, Panasonic holds 445 patents related to solid state battery technology. It isn’t just theoretical technology either. Panasonic is already a global leader in battery production and is a key supplier to leading EV firms such as Tesla (NASDAQ:TSLA).

As the lithium industry ramps up, Panasonic seems poised to profit. It recently launched construction of a new $4 billion battery facility in Kansas to greatly increase its capacity while offering end customers batteries made in America.

Panasonic’s U.S.-listed ADR shares have declined 37% in value over the past five years. Thanks to this correction, shares now go for just 16 times forward earnings while giving investors exposure to the rise in lithium and battery demand.

On the date of publication, Ian Bezek 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.