Exxon Mobil in talks with Tesla, Ford to supply lithium, Bloomberg Law reports

BENGALURU/HOUSTON: Oil major Exxon Mobil is in talks with Tesla, Ford Motor, Volkswagen and other automakers to supply lithium for electric vehicle batteries, Bloomberg Law reported on Monday, citing people familiar with the matter.

The talks also include the likes of Samsung and SK On Co, the report added.

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

Any discussions between Exxon and automakers would be very preliminary since Exxon has no way of producing the battery metal.

Reuters reported last month that Exxon had agreed to study ways with Tetra Technologies Inc to develop more than 24.7 square kilometres in Arkansas containing lithium-rich brine. Exxon also earlier this year bought more than 40,468ha in Arkansas from privately-held Galvanic Energy.

Extracting lithium from those brines will require Exxon to choose a direct lithium extraction (DLE) technology, something it has not yet done. Additionally, no DLE technology has ever worked at commercial scale, although multiple companies are racing to be the first.

Reuters also reported last month that Exxon has held talks with International Battery Metals about licensing DLE technology.

Exxon's rapid expansion into the lithium sector comes amid growing interest from traditional energy companies and others into emerging technologies that aim to boost global supply of the ultralight metal.