Exxon Mobil in Talks with Tesla, Ford, Volkswagen, and Others for Lithium Supply
July 31 (Reuters) – Oil giant Exxon Mobil is reportedly in discussions with automakers, including Tesla, Ford Motor, and Volkswagen, to supply lithium for electric vehicle batteries, according to a report by Bloomberg Law. The talks also involve Samsung and SK On Co, among others.
When contacted by Reuters for comment, Tesla, Ford, and Volkswagen did not respond, while Exxon declined to provide any statement.
The discussions between Exxon and the automakers are said to be in their early stages, as Exxon currently lacks the capacity to produce the battery metal.
In a separate report last month, Reuters revealed that Exxon had reached an agreement with Tetra Technologies Inc to explore over 6,100 acres of land in Arkansas that holds significant lithium-rich brine. Furthermore, earlier this year, Exxon purchased over 100,000 acres in Arkansas from Galvanic Energy.
However, extracting lithium from these brines will require Exxon to select a direct lithium extraction (DLE) technology, a decision that has not yet been made. It should be noted that no commercial-scale DLE technology has been successfully implemented, although several companies are competing to be the first.
Another report from Reuters also highlighted that Exxon has been in talks with International Battery Metals regarding licensing DLE technology.
Exxon’s interest in the lithium sector is part of its larger strategy to expand into emerging technologies aimed at increasing the global supply of this ultralight metal. This move aligns with the growing interest from traditional energy companies and other stakeholders in this field.
Reporting by Sourasis Bose in Bengaluru and Ernest Scheyder in Houston; Editing by Krishna Chandra Eluri and Marguerita Choy