Exxon Mobil is in talks with Tesla and other automakers to become a lithium supplier
The Carter Center
For years Elon Musk has been urging entrepreneurs to get into lithium mining. It appears someone was listening, but it's not a start-up. Exxon Mobil, the oil and gas giant and a name synonymous with the fossil fuel industry is reportedly engaged in early-stage discussions with Tesla and other automakers, including Ford and Volkswagen, to become a supplier of lithium.
Lithium is a key component in electric vehicle batteries. Tesla recently broke ground on its own lithium mining operation to address the critical element. Now that a major oil player is getting in the game, it signifies a significant shift in Exxon's strategic outlook as it embraces the inevitable transition towards more sustainable energy sources.
Harnessing Lithium: Exxon's Answer to EV Growth
A report from Bloomberg states that Exxon has been actively exploring the lithium business to diversify beyond fossil fuels. Its recent initiative involves the development of over 6,100 acres of lithium-rich land in Arkansas in partnership with Tetra Technologies Inc. The oil giant's strategic venture into the lithium sector underscores its commitment to securing the assets needed for EV battery production.
This move isn't merely a diversification strategy for Exxon; it presents a timely response to the meteoric rise of the EV sector. The increasing adoption of EVs has amplified the demand for lithium, posing a significant challenge to Exxon's core oil production and refining businesses. In turn, Exxon seeks to secure its position by harnessing a vital resource in this emerging market.
The company's entrance into the lithium market is not just about survival but also about leveraging its industry expertise for new business opportunities. Exxon has been considering extracting lithium from underground saltwater. This method aligns with the company's extensive experience in oil and gas extraction while also promising to be more cost-effective and environmentally friendly.
A Turning Point in the Energy Landscape
While the details of the discussions remain confidential, Exxon's engagement with Tesla and other automotive heavyweights signals a remarkable convergence of interests. By teaming up with major automakers, Exxon is positioning itself as a critical link between traditional and renewable energy sectors. This cooperation could foster a mutually beneficial relationship that bridges the gap between these diverse energy domains, encouraging knowledge sharing and expediting the adoption of sustainable practices.
Though Exxon has yet to announce whether it will independently undertake lithium production or seek partnerships, its ambitious goal of extracting 100,000 tons of lithium annually attests to its commitment to becoming a significant player in the lithium business. The corporation is also reportedly in talks with other lithium market participants, including Albemarle Corp, further emphasizing its intent to become a leading figure in the EV revolution.
Exxon Mobil's potential collaboration with Tesla and other automakers represents more than a strategic pivot; it is an emblematic turning point in the energy landscape, marking an era where traditional oil companies and EV manufacturers might work hand-in-hand to accelerate the transition towards a more sustainable future.
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Tesla China has outlined some features in Tesla’s latest update in the region, which is version 2024.26.9. In the list of features, Tesla mentions many of the features we’re already aware of, including Automatic Emergency Braking Improvements, YouTube Music and more, but they also reveal one additional feature that’s exclusive to China. The new feature allows the new blind spot indicator to light up if there’s something in the way when you’re opening your door. The blind spot indicator is exclusive to the new Model 3 and Cybertruck, which features little red LEDs in the front speaker grills next to the mirror.
Blind Spot Door Warnings
With update 2024.26.9, Tesla says that if any vehicle door handle button is pressed on vehicles with a Blind Spot Warning Light (currently just the 2024 Refreshed Model 3 Highland and the Cybertruck), the blind spot warning indicator in the vehicle’s front speakers will illuminate.
This object detection includes cars, pedestrians, cyclists, and “other objects”. We’re not quite sure what fits into the “other objects” category, but likely things that FSD picks up on normally – including traffic cones, bollards, and other large obstacles.
According to Tesla’s description, there appears to only be a visual warning for the driver and front passenger, with nothing displayed on screen or an audible tone. We’re sure Tesla will continue to expand and refine this feature like they’ve done with various features in the past, but for now, it's only available in China. Blind Spot Door Warnings need to be enabled under Controls > Safety before this feature will function.
We’d love to see Tesla use the ambient light strip in the vehicle to warn passengers and drivers when their door is obstructed – it would be a fantastic use of a luxury feature for utilitarian safety – rather than just the single red LED inside the door speaker. Additionally, an audio warning would be excellent for those who may not see the red dot.
Tesla appears to be making progress on FSD in China, with the latest update available in the region now displaying the FSD button in the vehicle. Tesla makes no note of the change in the release notes, nor does it appear to be available in any other regions that are expected to receive access to FSD in the future.
FSD in the UI
In the Autopilot options in China, users could previously select Traffic-Aware Cruise Control or Auto Steer (Beta), however, as of 2024.26.9, the Full Self Driving (Supervised) button is now visible – but greyed out. Tapping on the option doesn’t do anything just yet, but the addition of the button could be a hint that Tesla is planning to enable the feature soon.
Underneath the Autopilot selection, Tesla also has a phrase that says, “Full Self-Driving (Supervised) needs to use an updated version of navigation maps. Connect to Wi-Fi to download” (Thanks, Luis Zhu). It’s possible the option is greyed out because the software needs updated maps to work. There are no reports yet of what happens when the navigation map is downloaded.
We previously reported that FSD was on hold in China, even after Tesla received approval to start testing FSD in China. This flip-flopping is interesting but could be due to regulatory issues between China and Tesla regarding data collection and where the data is stored. Now that the button is in the UI – Tesla is clearly confident that it either has received approval or will in short order.
It certainly appears that Tesla is going to be opening up FSD in the region fairly soon. It’ll be interesting to see if Tesla uses the same Safety Score feature they used in the U.S. when choosing drivers to beta test the program.
Elon Musk previously mentioned that FSD (Supervised) would be rolling out to global markets, including Europe and China, as Tesla received approvals from governments in those nations.
