In this article, we will discuss 7 Best Steel and Metal Stocks to Buy for Energy Infrastructure.

The next trillion-dollar energy boom may not be built by oil producers, solar developers, or AI companies; it may be forged by steel mills and metal manufacturers.

As the world races to modernize power grids, expand LNG export facilities, build renewable-energy projects, and construct the infrastructure needed to support artificial intelligence and electrification, demand for steel and industrial metals is rising to levels that have captured the attention of some of Wall Street’s most influential investors. While technology stocks often dominate headlines, billionaire investors and hedge fund managers increasingly view steel and metal companies as critical beneficiaries of the global energy transition.

Legendary investor Warren Buffett has long favored businesses tied to real economic activity and infrastructure, while hedge fund billionaire Stanley Druckenmiller has repeatedly argued that commodity and industrial cycles can generate some of the market’s biggest winners when supply struggles to keep pace with demand. Similarly, Ray Dalio has warned that years of underinvestment in critical industrial capacity could collide with growing infrastructure needs, creating powerful opportunities in real-asset sectors.

The numbers are difficult to ignore. According to the International Energy Agency, global electricity demand is expected to grow at one of the fastest rates in decades, requiring massive investments in transmission lines, substations, pipelines, LNG terminals, wind farms, and data centers; all of which depend heavily on steel and industrial metals. Industry forecasts also project that global steel demand will remain supported by energy infrastructure spending, grid modernization, and industrial reshoring initiatives.

For investors seeking exposure to the physical backbone of the global economy, steel and metal stocks are increasingly emerging as leveraged plays on one of the most important infrastructure buildouts in modern history.

With this context in mind, here are some of the best steel and metal stocks to buy for energy infrastructure.

Our Methodology

We used stock screeners to identify a list of steel and metal stocks that have positive upside potential. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These stocks are also popular among analysts and elite hedge funds. To make the list easier to navigate, we ranked the stocks in ascending order of their upside potential.

Why are we interested in the stocks that hedge funds pile into? The reason is simple: our research has shown that we can outperform the market by imitating the top stock picks of the best hedge funds. Insider Monkey’s quarterly newsletter’s strategy selects 14 small-cap and large-cap stocks every quarter and has returned 599.2% since May 2014, beating its benchmark by 372 percentage points (see more details here).

7 Best Steel and Metal Stocks to Buy for Energy Infrastructure

7. Ternium S.A. (NYSE:TX)

Upside Potential: 0.27%

Ternium S.A. (NYSE:TX) received a significant boost in analyst sentiment on May 24 when Itau BBA upgraded the stock to Outperform from Market Perform and assigned a $59 price target. The upgrade reflects growing confidence in the company’s positioning within the steel industry and its ability to capitalize on improving market conditions across key regions.

Earlier, on May 22, Goldman Sachs raised its price target on Ternium S.A. (NYSE:TX) to $57 from $49 while maintaining a Buy rating. According to the firm, Ternium represents an attractive opportunity for investors seeking exposure to the North American steel market. The revised target underscores expectations for favorable demand trends and the company’s ability to benefit from its integrated operating model. The consecutive analyst upgrades from major financial institutions suggest that market participants are becoming increasingly constructive on Ternium’s outlook.

Ternium S.A. (NYSE:TX) is a leading multinational steel producer headquartered in Luxembourg City, Luxembourg, with roots dating back to 1961. The company operates a vertically integrated business that spans iron ore mining through the production of finished and semi-finished steel products.

6. Materion Corporation (NYSE:MTRN)

Upside Potential: 0.43%

Materion Corporation (NYSE:MTRN) continued to attract positive analyst attention after KeyBanc analyst Samuel McKinney raised his price target on the stock to $237 from $223 on June 2 while maintaining an Overweight rating. The analyst pointed to the company’s strong performance within its Electronic Materials segment, which generated a first-quarter gross margin exceeding 43%. Management attributed the margin expansion to a more favorable product mix as well as operational improvements and cost-reduction initiatives implemented during periods of lower demand. Following discussions at a recent conference, KeyBanc expressed increased confidence that Electronic Materials’ margins could remain above 40% through fiscal 2026.

Earlier, on May 7, Materion Corporation (NYSE:MTRN) announced that its Board of Directors approved a second-quarter 2026 dividend of $0.145 per share, representing an increase of $0.005 per share from the previous level. The increase marked the company’s 14th consecutive year of dividend growth, highlighting management’s commitment to returning capital to shareholders while maintaining financial discipline. Consistent dividend increases also underscore the stability of Materion’s business model and its ability to generate cash flow across different economic cycles.

Materion Corporation (NYSE:MTRN) is a global advanced materials company headquartered in Mayfield Heights, Ohio, and was founded in 1931. The company develops and manufactures highly engineered materials, including specialty metals, advanced alloys, precision optics, and thin-film coatings, which are critical to a wide range of high-growth industries, including semiconductors, aerospace, defense, telecommunications, and electric vehicles.

5. Worthington Steel, Inc. (NYSE:WS)

Upside Potential: 5.02%

Worthington Steel, Inc. (NYSE:WS) gained further support from Wall Street on June 2 when KeyBanc raised its price target on the stock to $46 from $38 while maintaining an Overweight rating. The firm highlighted the transformational impact of Worthington’s pending acquisition of Kloeckner, noting that final regulatory approval had been secured and the transaction was expected to close on June 3. KeyBanc also believes the company can generate approximately $150 million in synergies by fiscal 2028, potentially adding more than $2.00 per share in earnings once fully realized.

Previously, on March 31, Worthington Steel, Inc. (NYSE:WS) announced that the initial acceptance period for its voluntary tender offer for Kloeckner had successfully exceeded the minimum threshold requirement. The company secured approximately 58.8% of Kloeckner’s issued share capital, clearing a major hurdle in the acquisition process. Management has outlined plans to further integrate the business following completion of the transaction and remains confident in obtaining the approvals necessary to implement additional strategic initiatives. The offer, which represented a substantial premium to Kloeckner’s historical share price, received support from the target company’s management and supervisory boards.

Worthington Steel, Inc. (NYSE:WS) is an independent metal processing company headquartered in Columbus, Ohio, with roots dating back to 1955. It is among the best steel and metal stocks to buy for energy infrastructure. The company specializes in value-added carbon flat-roll steel processing, tailor-welded solutions for automotive applications, and electrical steel laminations used in electric vehicles and industrial motors.

4. Trilogy Metals Inc. (NYSEAMERICAN:TMQ)

Upside Potential: 15.06%

Trilogy Metals Inc. (NYSEAMERICAN:TMQ) provided an important update on June 1 regarding the previously announced $35.6 million strategic equity investment from the U.S. Department of War. The company and the department agreed to extend the targeted closing date from May 31 to July 31 to allow additional time for the completion of definitive documentation. Trilogy noted that the U.S. Government has completed its Foreign Ownership, Control, or Influence assessment, clearing a key step toward closing the transaction. Discussions are also continuing among Trilogy, South32, Ambler Metals, and government representatives regarding a framework to support financing and construction of the Ambler Access Project, a critical infrastructure component for unlocking mineral development in the Ambler Mining District.

Earlier, on April 6, Raymond James upgraded Trilogy Metals Inc. (NYSEAMERICAN:TMQ) to Outperform from Market Perform and assigned a C$8 price target following the company’s first-quarter update. The firm highlighted Trilogy’s exposure to the Arctic Project, a high-grade copper and zinc development asset located in Alaska. Raymond James also pointed to comments from the U.S. Interior Secretary indicating that the White House is actively evaluating participation in Ambler Road financing, potentially as an equity partner, which could significantly enhance project economics and development prospects.

Trilogy Metals Inc. (NYSEAMERICAN:TMQ) is a mineral exploration and development company headquartered in Vancouver, British Columbia, Canada, and was founded in 2011. Through its ownership interest in Ambler Metals LLC, the company is advancing a portfolio of polymetallic deposits that contain copper, zinc, lead, gold, silver, and cobalt, all of which play important roles in industrial manufacturing, infrastructure, renewable energy systems, and electric vehicle supply chains.

3. Lithium Argentina AG (NYSE:LAR)

Upside Potential: 22.19%

Lithium Argentina AG (NYSE:LAR) received a strong endorsement from Scotiabank on May 15 when the firm raised its price target on the stock to $11 from $8.50 while maintaining an Outperform rating. The analyst identified Lithium Argentina as the top pick among all small-cap companies under the firm’s coverage universe, reflecting confidence in the company’s asset quality, development strategy, and leverage to improving lithium market fundamentals.

Just days earlier, on May 13, Deutsche Bank analyst Corinne Blanchard raised her price target on Lithium Argentina AG (NYSE:LAR) to $12 from $11 and reiterated a Buy rating following the company’s first-quarter report. The back-to-back target increases from two major financial institutions underscores growing optimism surrounding the company’s operational progress and its ability to capitalize on the increasing importance of lithium within the global energy transition.

Lithium Argentina AG (NYSE:LAR) is a pure-play lithium resource and development company headquartered in Buenos Aires, Argentina, and was founded in 2007. The company focuses on developing and operating lithium brine resources that produce lithium carbonate, a key raw material used in electric vehicle batteries and energy storage systems.

2. TMC the metals company Inc. (NASDAQ:TMC)

Upside Potential: 65.64%

TMC the metals company Inc. (NASDAQ:TMC) reported first-quarter results on May 14, posting earnings per share of $(0.05), in line with analyst expectations. Alongside the earnings release, the company announced several milestones that advanced its commercial development plans. Management disclosed that the National Oceanic and Atmospheric Administration determined TMC USA A’s consolidated application is fully compliant, moving the project closer to a potential permit decision by the first quarter of 2027. The company also entered into a commercial agreement with Allseas to operate the first commercial polymetallic nodule collection system, with commissioning targeted for the fourth quarter of 2027. Chief Executive Officer Gerard Barron stated that the opening months of 2026 have been marked by accelerated execution across the organization.

Earlier, on April 16, TMC the metals company Inc. (NASDAQ:TMC) announced that its subsidiaries, Nauru Ocean Resources and Tonga Offshore Mining, submitted extensive exploration data to DeepData following nearly a decade of deep-sea research activities. The company noted that its database includes findings from 27 expeditions, pilot mining tests, biological observations, and hundreds of thousands of seafloor images. Management emphasized that the research supports and expands upon decades of prior scientific work, including studies conducted under NOAA’s Deep Ocean Mining Environmental Study program, helping establish one of the largest environmental datasets assembled for deep-sea mineral development.

TMC the metals company Inc. (NASDAQ:TMC) is a deep-sea minerals exploration company headquartered in Vancouver, Canada, and was founded in 2011. The company focuses on collecting and processing polymetallic nodules found on the seafloor, which contain nickel, cobalt, copper, and manganese. These metals are essential inputs for electric vehicle batteries, grid-scale energy storage systems, and other technologies supporting the global transition toward cleaner energy sources.

1. Evolution Metals & Technologies Corp. (NASDAQ:EMAT)

Upside Potential: 311.52%

Evolution Metals & Technologies Corp. (NASDAQ:EMAT) reported first-quarter revenue of $1.879 million on May 22 and outlined several initiatives designed to accelerate growth following its transition to the public markets. Executive Chairman David Wilcox described the quarter as a foundational period for the company, highlighting the successful Nasdaq listing and the integration of more than eighteen years of commercial-scale rare earth magnet manufacturing experience into a single public entity. Management also announced the purchase of thirteen ULVAC sintered magnet production machines, which are expected to support the company’s efforts to scale production of high-performance rare earth permanent magnets for defense and industrial applications. The company further cited favorable policy developments supporting domestic critical-material supply chains.

Earlier, on May 11, Evolution Metals & Technologies Corp. (NASDAQ:EMAT) secured a financing commitment of up to $100 million from Yorkville Advisors. The capital is expected to support the expansion of commercial operations, including plans to increase annual production capacity for high-performance rare earth magnets. The investment provides the company with additional financial flexibility as it works to strengthen its manufacturing footprint and capitalize on growing demand for strategically important materials within North America.

Evolution Metals & Technologies Corp. (NASDAQ:EMAT) is a critical materials company headquartered in West Palm Beach, Florida. Formed in 2026 through a merger, EMAT is focused on developing a vertically integrated, recycling-led supply chain for rare earth permanent magnets and battery materials that reduces dependence on foreign suppliers while supporting domestic industrial, defense, and energy-transition markets.

READ NEXT: 12 Best Future Stocks to Buy Right Now and  9 Best Space Stocks to Buy According to Reddit and Social Media.

Disclosure: None. Follow Insider Monkey on Google News.