Oct 24, 2020

IS LITHIUM THE NEW OIL?



Every other day a vivified piece of news comes to our ears. The past few decades have seen a variety of problems, but one problem still remains unchanged and unorganized. This news is about the rise in petroleum product rates and its consequences to the middle-class man along with the economy. This news has been going around for a long time and there is a simple reason behind it which many of the people are ignorant about. Oil is limited and it is going to lead to its shortage in near future. In addition to its burning of oil impacts and the environment, this phenomenon has brought us to this new era known as the “polluted era”.

Many years of research and growth in science has led the scientists to develop a new resource to power vehicle engines which might replace the old era of oil and petroleum. Today people are trying to find some renewable resources, some better power options and as for now, electric power tops the list. Electric batteries are running through everything from electronics to transportation.

Lithium is one element which has changed the game of conventional resources and shifted our attention towards electric modules. It is an abundant alkaline mineral and is very suitable to make a rechargeable battery. Unlike oil, lithium is found immensely in various parts of the world. Rather than controlling its resources countries focus more on its technical developments and produce more efficient systems.

Between various countries, China is holding the command when it comes to the manufacturing and research of lithium batteries. BloombergNEF research shows that the price of lithium batteries fell 85% in the last decade and is likely to fall by 35% by 2024 to below $100/kwh. This makes this resource more affordable than the traditional use of oil in the industries. The EV business is booming day by day, battery-powered cars are crashing the market at a faster pace.

Tesla by Elon Musk has created a revolution in this industry. Almost every country is shifting towards the development of electric automotive. Tesla has been estimated to grow by 30% in the next decade. The main aim of battery innovators is to increase the life of batteries and the time that each charge lasts. A longer life extends the time until an expensive battery replacement, and a longer-lasting charge extends the vehicle’s range before the next charge. Along with this many startups producing lithium batteries have been evolved due to this technology. It becomes quite easy for startups to create a monopoly in this sector due to the less competition in the market. TATA has also produced its own electric SUV and launched it in the Indian market. India is also closing towards building a stable electric revolution in the upcoming years.

Lithium is going to be the new oil running through the environment with less adverse effects. The future might not seem certain due to the covid-19 crisis, but many industries are striving hard to make electric batteries replace their oil-based industries. The upcoming decade will surely see a steep rise in the growth of electric appliances and vehicles which will change the face of the world along with maintaining the environmental balance. Startups involving this technology will always be a step ahead for the competition in the market!

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