Why Elon Musk and Exxon are highlighting a crucial component for EVs in 2021.

A critical mineral used for electric vehicle batteries has caught the eye of industry leaders in 2023. Tesla CEO Elon Musk has compared lithium batteries to the new oil, stressing the need to increase lithium production. Demand for lithium is anticipated to double between 2025 and 2030 due to the growing market for electric vehicles. In the U.S., electric vehicle sales hit a record high of 7.9% market share, and the government aims to have 50% of new vehicle sales be electric by 2030.

While the U.S. is pushing to expand lithium production due to increased demand, the prices of lithium have dropped significantly. However, this year’s challenges surrounding lithium are expected to be temporary, as U.S. producers seek to break into the lithium market. Factoring in long-term challenges, including the refinery process becoming a monopoly of China, some manufacturers are working to develop technologies that could replace lithium in the future.

In the near future, lithium-ion technology remains the commercial technology of choice. The long-term success of new technologies surpassing lithium is uncertain for now.