© Reuters. FILE PHOTO: A logo of the Exxon Mobil Corp is seen at the Rio Oil and Gas Expo and Conference in Rio de Janeiro, Brazil September 24, 2018. REUTERS/Sergio Moraes/File Photo
(Reuters) -Oil major Exxon Mobil (NYSE:) is in talks with Tesla (NASDAQ:), Ford Motor (NYSE:), Volkswagen (ETR:) 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 (KS:) 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 (NYSE:) Inc to develop more than 6,100 acres (24.7 square kilometers) in Arkansas containing lithium-rich brine. Exxon also earlier this year bought more than 100,000 acres in Arkansas from privately-held Galvanic Energy.
Extracting lithium from those brines will require Exxon to chose 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.
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