Following ExxonMobil’s announcement of venturing into lithium mining in May, talks have emerged linking the US oil company with several major players in the automotive and battery industries. According to insider reports, discussions are underway with carmakers Tesla, Ford, and Volkswagen, as well as battery manufacturers SK On and Samsung SDI, along with lithium producer Albemarle.
While the negotiations are still in the early stages, Bloomberg views them as indicative of ExxonMobil’s growing interest in the lithium sector. However, the companies involved have neither confirmed nor denied the information. When approached by Bloomberg, Exxon, VW, and SK On declined to comment, while Tesla, Ford, and Samsung SDI did not respond to requests for comment.
At the end of May, it was reported that ExxonMobil had acquired drilling rights for a lithium-bearing brine mining site covering approximately 48.5 hectares in southern Arkansas. The deal, valued at 100 million dollars (around 93 million euros at the time), hinted at ExxonMobil’s intention to expand its lithium mining operations if the venture in Arkansas proves profitable.
Insiders revealed that initial test drilling had been conducted on a four-acre area in Arkansas. However, the decision on whether ExxonMobil will undertake the mining itself or seek a partnership remains pending. Albemarle, a prominent lithium producer, is being considered as a potential collaborator in this endeavour. Although the company remained circumspect in its response, it did not outright deny the possibility, stating that people often reach out to them given their leadership role in the market.
ExxonMobil’s CEO, Darren Woods, previously highlighted the natural synergy between lithium production from brine and the company’s existing operations in oil, gas, refineries, and chemical plants. He emphasised that the process of extracting lithium from brine aligns well with many aspects of their current operations, including some of their upstream activities.
As the talks continue, the industry eagerly awaits further developments and official confirmations from the parties involved. ExxonMobil’s entry into the lithium market signifies a potentially significant shift in the energy landscape, with key players exploring new avenues to secure essential resources for electric vehicle batteries and sustainable energy technologies.
