Exxon Mobil lithium supply: On Monday, Bloomberg Law reported intriguing developments in the automotive industry, stating that Exxon Mobil is in discussions with major automakers, including Tesla, Ford Motor, and Volkswagen, regarding the supply of lithium for electric car batteries. These conversations signify a potential shift in the lithium supply landscape, with companies seeking to secure reliable sources for this crucial battery metal.
Curiosity arose about experts’ opinions on the matter, and industry insiders are eagerly awaiting further updates on the progress of these discussions.
In parallel, other players in the lithium market, such as Samsung and SK On Co., are also engaged in discussions with each other, exploring avenues for collaboration and potential partnerships.
Despite attempts to gather insights from Ford, Volkswagen, and Tesla, Reuters’ efforts to obtain official statements from these automakers were met with silence. Similarly, Exxon’s position on the matter remains undisclosed at this point.
The report by Reuters disclosed that Exxon has recently been involved in lithium extraction efforts. The company, along with Tetra Technologies Inc. (TTI.N), successfully extracted lithium-rich water from approximately 6,100 acres of land in Arkansas about a month ago.
This endeavor follows Exxon’s acquisition of over 100,000 acres of land in Arkansas from Galvanic Energy at the beginning of the year, showcasing the company’s growing interest in lithium-related ventures.
While Exxon has not pursued lithium extraction from seawater, this latest endeavor demonstrates its ambition to tap into the lucrative lithium market. Many companies are exploring Direct Lithium Extraction (DLE) technology to determine its feasibility and profitability.
Reuters also revealed that Exxon engaged in discussions with International Battery Metals (IBAT.CD) regarding the potential licensing of its DLE technology, indicating a proactive approach to collaboration within the industry.
The rising interest of traditional energy companies and other entities in technologies that can boost lithium supply bodes well for Exxon’s strategic expansion in the lithium sector.
As developments in the lithium supply chain continue to unfold, industry experts, including Ernest Scheyder in Houston and Sourasis Bose in Bengaluru, are closely monitoring the situation. Marguerita Choy and Krishna Eluri have contributed their expertise to edit and refine this report, adding to its credibility and reliability.
Our Reader’s Queries
Does Exxon produce lithium?
ExxonMobil is gearing up to produce lithium by 2027 and is exploring growth opportunities worldwide. The company’s goal is to produce enough lithium by 2030 to meet the manufacturing needs of more than a million electric vehicles annually.
Who is Exxon lithium partner?
Exxon has teamed up with Tetra Technologies (TTI. N) to create a lithium partnership in Arkansas. This smaller parcel is projected to produce 10,000 metric tons of lithium annually by 2026.
Did Exxon buy lithium drilling rights in Arkansas?
Exxon made a significant move in early 2023 by acquiring the rights to 120,000 gross acres of the Smackover Formation in southern Arkansas. This area is known to have one of the largest lithium-rich brine deposits in North America. The project is expected to be a major boost for the company’s lithium production efforts.
What nation is the #1 supplier of lithium?
Australia and Chile are the two major players in the global lithium supply, with a combined share of 76.9%. Australia leads the pack with a dominant share of 46.9%, followed by Chile with 30%. China and Argentina trail behind with 14.6% and 4.8% respectively. These countries have a significant impact on the global lithium market, with their production and export of the mineral.