Tesla And Other Major Automakers Are In Talks With Exxon To Secure Lithium

ExxonMobil is in talks with Tesla, Ford Motor, Volkswagen, and other automakers about supplying lithium for electric vehicle batteries, according to Bloomberg Law, citing people familiar with the situation.

The talks also include Samsung and SK On Co, according to the report.

Tesla, Ford, and Volkswagen did not respond to requests for comment from Reuters, and Exxon declined to comment.

Any discussions between Exxon and automakers would be very preliminary because Exxon lacks the ability to produce the battery metal.

Reuters reported last month that Exxon had agreed to collaborate with Tetra Technologies to develop more than 24.7 square kilometres of lithium-rich brine in Arkansas. Exxon also purchased more than 100,000 acres in Arkansas from privately held Galvanic Energy earlier this year.

The company will need to select a direct lithium extraction (DLE) technology to extract lithium from those brines, which it has not yet done. Furthermore, no DLE technology has ever been commercialised, despite the fact that multiple companies are racing to be the first.

Exxon has also been in talks with International Battery Metals about licencing DLE technology, according to Reuters.