Musk: Lithium Batteries Are The New Oil

1.  The scramble for lithium batteries

The rapid development of new energy vehicles has attracted unprecedented attention to the entire industry. Of course, the competition between manufacturers continues, and the scramble for some key resources is particularly important, such as lithium batteries.

David Sacks, a partner at venture capital fund Craft Ventures, said on Twitter today: "If this year proves anything, it's that there is no security (arguably) without energy independence."

Tesla CEO Elon Musk then responded to the tweet: "Absolutely. Lithium batteries are the new oil."

2. The price of lithium batteries is rising

In fact, everyone sees the rise in oil prices but ignores that the price of lithium batteries is rising faster. How big is the increase? In January 2021, the price of lithium carbonate was 50,000 yuan/ton, and now it has become 450,000 yuan/ton, a direct increase of 9 times.

If a car uses a 60-degree battery pack, lithium carbonate, a material, has risen by more than 14,000 in a year. This is only a material of lithium carbonate. If other materials are added, the cost of a car will increase by 20,000 to 30,000, which is normal.

The production of lithium batteries can't keep up with the development of electric cars. Electric cars are "driving" too fast, and many companies have rushed in. Everyone is building electric cars, and the demand for lithium batteries has grown exponentially.

The production of lithium batteries is limited by the mining of lithium ore, and the mining of lithium ore is limited by more factors, and the cycle of production capacity expansion is also long, and it is impossible to achieve the same crazy growth of electric vehicles, doubling continuously. Therefore, the supply is in short supply, resulting in a substantial increase in the price of bulk lithium batteries.

As a professional lithium-ion battery China manufacturer, Lithium Storage provides varied types of lithium batteries for your selection. Feel free to contact for more info!

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