- safety: lithium-ion batteries explode if you look at them funny, and are full of poisons, while kerosene can put out a lit match and can be safely imbibed;
- materials availability: carbon is about ten times as abundant in earth's crust as lithium, and there are readily available ways to concentrate carbon from the air such as planting forests, while concentrating lithium from seawater is somewhat trickier;
- specific energy: Li-ion batteries can store 0.5 MJ/kg, and kerosene is 43 MJ/kg, which is a huge advantage for things like trucking and aviation;
- energy density: Li-ion batteries store 1 MJ/liter, kerosene is 35 MJ/liter, which is also important for things like aviation; and
- capital cost of storage facilities: you can store 200 liters of kerosene in a US$10 barrel, while 200 liters of lithium-ion batteries would be about 12,000 18650s, which costs on the order of US$50,000.
Gasoline does indeed share most of these advantages and can also be used in cheaper engines that can rev faster. Other fuels that might be reasonable to synthesize in the same way include hydrogen itself, methane, LP gas (propane/butane), and ammonia (!!).
The ideal solution would be efficient solar bioreactors where bioengineered algea converted solar energy into fats as a bioproduct of a photosynthetic process sequester CO2 that could be esterfied into alkanes or that directly produced alkanes. Long chain alkanes, my understanding is, are not toxic to life. It is the short chain stuff and aromatic ring based stuff like benzene that is hazardous.
https://sfamjournals.onlinelibrary.wiley.com/doi/10.1111/175...
Algae have very low capital costs but also fairly low photonic efficiency; it's reasonable to expect non-algae-based designs to be superior. (BTW, you can't esterify things into alkanes; alkanes aren't esters.) You're right about the toxicity profiles, although even things like hexane and octane are relatively low toxicity; hexane's oral LD50 is like tens of grams per kilogram, but they have higher toxicities if you breathe or inject them.
I was using Li as shorthand for Litium Ion batteries which I assume contain salts or oxides or hydrides of lithium. I know it is not elemental lithium. My point was that H-C bonds contain more energy than whatever is in Li batteries in the charged state per mol.