Bloomberg: Exxon talks with Tesla, VW and other automakers about lithium supplies

US oil giant ExxonMobil is in talks with Tesla, Ford, Volkswagen and other automakers about supplying them with lithium, which is used to make batteries. Bloomberg reported the news today, citing sources familiar with the matter. The talks are part of Exxon’s efforts to build a business in components for electric vehicle batteries, according to the agency.

The automotive industry’s current shift from internal combustion engine vehicles to electric vehicles is driving demand for lithium and threatening the future of ExxonMobil’s key oil production and refining businesses, Bloomberg reports.

ExxonMobil plans to produce 100,000 tonnes of lithium a year and wants to secure buyers. The company recently began drilling at a deposit in the US state of Arkansas and is now deciding whether to extract the lithium itself or work with partners. It is in talks on this, for example, with lithium producer Albemarle, Bloomberg’s sources said.

Tesla, led by billionaire Elon Musk, is the world’s largest electric vehicle manufacturer. German group Volkswagen, which includes Škoda Auto, among other companies, is now investing heavily in electric mobility and aims to overtake Tesla as the global electric vehicle market leader in the future.