CEO Elon Musk took to Twitter Inc early Wednesday afternoon to post that “lithium batteries are the new oil.”
The comment was in response to a statement Craft Ventures co-founder and partner David Sacks made on the micro-blogging platform, which said “If this year proves anything, it’s that there can be no security without energy independence,” likely in reference to the ongoing oil woes caused by Russia’s invasion of Ukraine.
Musk replied, “Absolutely,” before comparing the EV battery metal to oil using a saying regularly reserved for describing clothing trends.
A Look At The Markets: Although the world is slowly but steadily moving toward EV adoption, markets are controlled by supply and demand. While lithium is experiencing high demand due to the increase in electric vehicle production, rising inflation and a looming recession could thwart the heavy adoption of the technology by consumers in the near term.
Oil is also in a tricky situation because despite the transition away from traditional gasoline-powered engines, the war in Ukraine has pushed to the forefront how dependent the world remains on fossil fuels.
Lithium Vs. Oil ETFs: Lithium-based ETF, Global X Lithium and Battery ETF
On the other hand, the United States Oil ETF
The Benzinga Take: Eventually, Elon Musk’s statement will become fact, as the paradigm continues to shift and countries around the globe work to meet their green initiatives to phase out gas-guzzling vehicles in favor of electric modes of transportation.
For the time being, although lithium is more in vogue, the world depends on oil and EVs remain largely a luxury.