Exxon Mobil Corp. is making strategic strides in the evolving landscape of electric vehicles (EVs) as it reportedly engages in discussions with prominent automakers, including Tesla Inc., Ford Motor Co., and Volkswagen AG. These talks are centered around potential lithium supply agreements, a crucial component for EV batteries, and mark Exxon's entry into the battery component industry.
While still in the early stages, these discussions have also extended to battery industry giants like Samsung and SK On, as indicated by sources from Bloomberg News. As of now, both Exxon and Volkswagen have chosen to withhold comments on the matter, mirroring the silence of Tesla, Ford, and Samsung.
Exxon's interest in securing lithium buyers aligns with the rapid growth of the electric vehicle sector. With the surge in EV sales, the demand for essential battery components like lithium has soared, posing challenges to Exxon's conventional oil production and refining businesses.
In a bid to stay ahead, Exxon has set an ambitious goal of annually extracting 100,000 tons of lithium, driving their exploration of a potential 10-acre lithium extraction site in Arkansas. However, the decision of pursuing independent lithium production or forming partnerships is yet to be finalized.
Among the discussions that Exxon reportedly initiated, one noteworthy participant is the chemicals company Albemarle Corp., according to Bloomberg's sources. While Albemarle did not confirm the discussions, they acknowledged their industry leadership often draws interest from various stakeholders seeking potential resources.
Notably, Exxon has expressed prior interest in adopting innovative lithium extraction techniques, particularly from underground saltwater. This approach is believed to be both cost-effective and environmentally friendly when compared to traditional mining methods. Exxon's CEO Darren Woods emphasized the alignment of this process with the company's existing operations during a recent earnings conference call, highlighting the consistency of extracting lithium from brine with their refinery, chemical plant, and upstream operations.
Tesery, dedicated to providing quality products and services to Tesla owners. The most trusted Tesla accessories shop and supplier, the choice of over 28,000 Tesla owners!
