Image: Tesla
Exxon Mobil, one of the world’s largest oil companies, is reportedly in preliminary discussions with leading automakers, including Tesla, Ford Motor, and Volkswagen, to supply lithium, a crucial component in electric vehicle batteries. The news was reported by Bloomberg Law on Monday, citing sources familiar with the matter.
The discussions, which are still in their early stages, also involve tech giant Samsung and SK On Co, according to the report. Exxon Mobil, Tesla, Ford, and Volkswagen have not yet responded to requests for comment.
Last month, Exxon Mobil announced an agreement with Tetra Technologies Inc to develop over 6,100 acres of lithium-rich land in Arkansas. This marks the oil giant’s second move this year to secure control over assets needed to produce the metal essential for electric vehicle batteries.
Exxon is also in talks with chemicals company Albemarle, which produces lithium.
The firm, with an ambitious target of mining 100,000 tons of lithium annually, is currently investigating a 10-acre location in Arkansas. It has recently initiated drilling operations at the site. However, the company is still deliberating whether to undertake the production independently or collaborate with other partners, as per an individual familiar with the matter.
It’s said that Exxon is looking into the production of lithium from underground saltwater. The process is reportedly cheaper and more environmentally friendly versus traditional methods of mining lithium.
During the company’s earnings conference call with analysts last week, CEO Darren Woods stated that the process of handling brine and extracting lithium aligns closely with many of the operations conducted in their refineries, chemical plants, and even some upstream operations.
Exxon Mobil’s swift expansion into the lithium sector reflects the growing interest from traditional energy companies and others in emerging technologies. These technologies aim to increase the global supply of lithium, an ultralight metal that is becoming increasingly important as the demand for electric vehicles continues to rise.
