Exxon Mobil Engages in Discussions with Tesla and Ford to Provide Lithium Supply

Exxon Mobil, a prominent player in the oil industry, is currently in discussions with leading automakers such as Tesla, Ford, and Volkswagen to potentially supply them with lithium for electric vehicle batteries. This development highlights the increasing interest among traditional energy companies in emerging technologies and the surging demand for lithium, a vital element in electric vehicle battery production.

Exxon Mobil is exploring the possibility of entering the lithium supply chain for automakers. These talks are still in their early stages and no formal agreements have been reached so far. Other companies such as Samsung and SK On Co are also reportedly involved in these discussions, thereby indicating the growing competition and interest in this sector.

However, it is important to note that Exxon Mobil does not currently possess the capability to produce lithium. Nevertheless, the company has taken significant steps toward entering the lithium market. Recently, Exxon Mobil has entered into a collaboration with Tetra Technologies Inc to conduct a study on potential lithium reserves in Arkansas, which span over 6,100 acres of land. This demonstrates their keenness to explore lithium-rich brines as a potential source.

The extraction of lithium from brines requires the utilization of direct lithium extraction (DLE) technology. While Exxon Mobil has yet to select a specific DLE technology, it is worth mentioning that no commercial-scale implementation of DLE technology has been achieved to date. However, various companies are actively working on developing this technology and competing to be the first to achieve commercial viability.

In addition to discussions with automakers, Exxon Mobil has engaged in talks with International Battery Metals regarding the licensing of DLE technology. These moves signify Exxon's ambitious expansion into the lithium sector and its efforts to secure a position in the rapidly growing market for this essential battery material.

The interest exhibited by major oil companies such as Exxon Mobil in the lithium supply chain reflects a broader trend of traditional energy companies seeking opportunities in renewable and sustainable technologies. As the demand for electric vehicles continues to soar, securing a stable and sustainable supply of lithium has become a top priority for automakers. The ongoing talks between Exxon Mobil and automakers underscore the increase in the significance of lithium as a pivotal component in the transition toward cleaner transportation.

About Tesla

Tesla, Inc., a renowned American multinational automotive and clean energy company, is based in Austin, Texas. The company specializes in designing and producing electric vehicles, including cars and trucks. Additionally, Tesla manufactures stationary battery energy storage solutions for both residential and grid-scale applications. They also offer solar panels, solar roof tiles, and a range of related products and services to support sustainable energy consumption.

About Ford

Ford Motor Company, also known as Ford, is a multinational automobile manufacturer based in Dearborn, Michigan, United States. Established by Henry Ford on June 16, 1903, the company is renowned for its production and sale of automobiles and commercial vehicles bearing the Ford brand. Additionally, Ford offers luxury cars under its Lincoln brand.