Exxon Mobil Corp. is in talks with Tesla Inc., Ford Motor Co., Volkswagen AG and other automakers about supplying them with lithium as the oil giant works to build a business around the crucial battery metal, according to people familiar with the matter.
Exxon is one of several oil and gas companies seeking to expand into lithium production to take advantage of surging demand for use in electric-vehicle batteries, and as a way of diversifying beyond fossil fuels. The talks with potential customers are still early stage, and the company has yet to lay out its plans for potential lithium operations. However, the discussions are the latest sign of Exxon’s growing interest in the lithium business.
The company has also had conversations with battery giants Samsung and SK On Co., the people said, asking not to be named because the information is private. Exxon, SK On and Volkswagen declined to comment. Tesla, Ford and Samsung didn’t reply to messages seeking comment.
The rapid global roll out of electric vehicles has raised the risk of bottlenecks and shortages for key battery materials like lithium, sparking a rush to invest in and secure supply. The world will need nearly 60 new lithium mines and plants to feed the growing demand for the shift away from fossil fuels, according to researcher Benchmark Mineral Intelligence, and more lithium will be required in 2030 than was mined between 2015 and 2022.
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