Energy giant ExxonMobil is talking with Tesla, Ford and Volkswagen to establish lithium supply chains as the organization looks to improve its critical EV battery materials operations. ExxonMobil is also speaking with battery makers Samsung and SK On, according to Mining Technology.
The talks with potential buyers are still in the early stages.
At this time, ExxonMobil has not outlined the details of its lithium business.
In May 2023, the organization bought drilling rights in Arkansas, a part of the U.S. thought to be rich in lithium deposits. ExxonMobil paid the exploration company Galvanic Energy over $100 million for 120,000 acres of land in southern Arkansas.
Previously, ExxonMobil, as a member of the Oil and Gas Climate Initiative (an organization comprised of the 12 largest oil and gas companies aimed at achieving a net-zero future), created a $1 billion package to invest in the EV battery space.
In 2022, 45 lithium mines were operating globally with 11 more expected to open in 2023, according to presentations at the Fastmarkets Lithium and Battery Raw Materials conference held in July 2023. Seven more lithium mines are scheduled to open in 2024.
Unfortunately, industry forecasts predict this will not be enough to keep up with the growing demand coming from the automotive sector. Estimates suggest 60 new lithium mines and plants will need to be operational by 2030 to meet the global demand for EVs.
