Elon Musk calls lithium batteries the “new oil”

Elon Musk AI


  • Elon Musk has highlighted the importance of lithium, calling it “the new oil”, essential for the automotive industry and rechargeable battery technology.
  • Tesla, Musk’s company, is investing in a lithium refinery in Texas, planned to start operations in 2025, making it the largest lithium refiner in North America.
  • Amprius Technologies and Albemarle Corporation are two companies in the lithium industry that Wall Street analysts see as good investment options in response to the growing boom and demand for lithium.

Elon Musk has described lithium as “the new oil”, essential for the automotive industry and supply chains. A key element in rechargeable battery technology, this element is found in a variety of devices, from smartphones to electric vehicles.

Australia, Chile and China are the main producers of lithium and, particularly, China dominates the production of lithium-ion batteries with a market share of approximately 80%. Musk has also warned of the need for more battery-grade lithium.

In response to this demand, Tesla has invested in a new lithium refinery in Texas, with production expected to begin in 2025. This project will make Tesla the largest lithium refiner in North America.

However, the lithium boom is not limited to industry giants. Many lithium producers will benefit from rising demand for the metal, and Wall Street analysts are highlighting certain actions for investors.

Two companies to consider are Amprius Technologies (AMPX), which focuses on developing and producing advanced lithium-ion battery technology, and Albemarle Corporation (ALB), a lithium-bromine-based specialty chemical company known for producing quality lithium for batteries. Both companies are well-positioned to benefit from the continued boom in lithium demand.