Tesla and other automakers are reportedly in talks with Exxon Mobil to secure lithium from a new source in Arkansas.
There are a few metals that need to be mined more to support the increased demand for batteries, which is primarily driven by the rise of electric vehicles.
Lithium is one of the metals at the top of that list.
The price has been quite volatile, to say the least, and automakers and battery manufacturers are trying to secure larger supplies at more stable prices.
Tesla has been amongst the automakers most early and eager to secure lithium for its battery manufacturers – and, more recently, for itself.
Bloomberg Law now reports that Tesla, along with several other companies, including Ford and Volkswagen, are in talks with Exxon Mobil to buy lithium from a new supply:
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 electric-vehicle battery component, according to people familiar with the matter.
Exxon – better known for its oil production, which is threatened by the electric vehicle revolution – has been looking to get into the lithium business, and it has exploitation rights to lithium resources in a promising region of Arkansas.
The new report also says that in addition to Tesla, Ford, and Volkswagen, Exxon is in talks with battery manufacturers Samsung and SK.
Albemarle is being floated as a potential partner for Exxon to extract the lithium in Arkansas underground water.
Other companies, like Standard Lithium, are also looking to secure lithium in Arkansas.