ExxonMobil is reportedly holding discussions with Tesla, Ford Motor, Volkswagen, and other automakers to potentially supply lithium for electric car batteries, according to individuals familiar with the matter as mentioned in a Bloomberg Law report cited by Reuters.
However, these talks are still in the early stages since ExxonMobil currently lacks the capacity to produce and provide this essential component for electric vehicles.
Additionally, Exxon is in negotiations with International Battery Metals for licensing Direct Lithium Extraction technology, as reported by Reuters.
In a separate report last month, Reuters mentioned Exxon’s collaboration with Tetra Technologies Inc. to exploit over 6,100 acres of lithium-rich brine in Arkansas. Moreover, earlier this year, Exxon acquired more than 100,000 acres in Arkansas from privately held Galvanic Energy.
Exxon’s venture into the lithium industry hinges on selecting a direct lithium extraction (DLE) technique to extract lithium from the brines, a decision that is still pending. Currently, no DLE technology has been successfully commercialized, despite various companies competing to be the first.
Furthermore, Exxon’s move comes at a time of heightened interest from traditional energy firms and other players in innovative technologies aimed at boosting the global supply of this lightweight metal.
Exxon faces challenges in its rapid entry into the lithium market, with the need to adopt a viable DLE solution at the forefront of their strategic considerations.
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