Will Exxon Mobil Transition To Support EVs? In Talks With Tesla About Supplying Lithium

August 1, 2023

By Kevin Armstrong

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.

Tesla Q1 Update on Optimus, Batteries, and Tesla Energy

May 1, 2025

By Karan Singh

Not a Tesla App

The 2025 Q1 Earnings Call gave us the opportunity to learn about a lot of things, from Unsupervised FSD, to the Robotaxi program, to the update on the more affordable model. There was a lot of news to unpack, but there’s still more.

In this article, we’ll cover Tesla’s updates on Optimus, batteries, and Tesla Energy.

Optimus

Tesla has been working away on their humanoid robot and continues to make progress in software and hardware.

First, Tesla is preparing the Fremont factory for the Optimus pilot production line, which is scheduled for completion later this year. Once it is, wider deployments of Optimus for internal use within Tesla’s facilities are expected as well. Tesla aims to have several thousand Optimus units working in its North American factories by the end of the year once the pilot production line is operational.

Tesla’s goals for production remain extremely lofty - 1 million units per year by 2030. However, they could face some challenges when ramping production.

Key components like the shoulder actuators use specialized permanent and rare-earth magnets, which are currently sourced from China. Due to recent Chinese restrictions on the overseas sale of these magnets, Tesla is seeking an exemption or alternative suppliers. They have not yet looked into modifying the shoulder actuator but will likely do so if they cannot obtain the necessary materials.

Batteries

Batteries are another item that Tesla’s teams have been working on behind the scenes for years now. The second generation of the 4680 - the Cybercell - has been IRA-compliant for some time now. This means that the Cybertruck is eligible for the US Federal EV rebate.

Tesla also achieved the lowest cost-per-kWh of any of its cells with the 4680 battery - and it is potentially one of the cheapest cells being manufactured by any vehicle battery manufacturer at this point. With dry-cathode still being worked on, Tesla may be able to squeeze more optimizations and cost efficiencies from the 4680 cells.

Additionally, Tesla is progressing with its plans for lithium refining and cathode production in the US, both of which are scheduled to commence in 2025. While the company says they’re no longer supply-constrained for non-LFP vehicle batteries, on-shoring production and sourcing critical minerals from nations outside of China will be key.

LFP batteries continue to be supply-constrained, namely for the Tesla Energy division. LFP batteries and their materials are sourced from China. Due to tariffs and limited exports, Tesla can’t obtain enough and is considering potentially building an LFP production facility in North America.

Energy

Tesla’s energy division is still experiencing some of the highest growth of any of its divisions. Year over year, Tesla saw a 154% increase in energy storage deployments, including both Megapack and Powerwall - for a total of 10.4 GWh deployed in just Q1 2025. While deliveries in energy storage remain volatile due to the nature of Megapack installations, Tesla expects growth to continue rapidly in this segment.

Tesla also deployed 1GWh of Powerwall 3 residential storage this quarter, marking its strongest quarter. Powerwall 3 has received positive feedback from customers, many of whom appreciate its new capabilities with its built-in inverter for solar.

Megapack is continuing to see demand increases, currently highlighted by utility-scale Megapack systems, as well as data centers requiring stable power delivery. Megafactory Shanghai is also online now and producing Megapacks - with an annual production capacity of 20GWh today and up to 40GWh in the future. The site has also produced over 100 Megapacks this quarter, which are all awaiting delivery.

There was a lot of interesting news from Tesla’s Q1 2025 Earnings Call, covering everything from FSD and Robotaxi - to the less glamorous but equally important Megapack and Powerwall.

Tesla Introduces AI-Powered Phone Support for Tesla Insurance, Reducing Wait Times and Cutting Costs

May 1, 2025

By Karan Singh

Not a Tesla App

Tesla is heavily leaning into artificial intelligence, and its insurance offering is just another example of how it’s improving its product or lowering costs by leveraging AI.

Tesla recently started offering an insurance discount in select states when drivers use FSD for at least 50% of their drives and now it’s introducing an AI to help handle customer claims.

Tesla has developed an in-house voiced AI agent that can assist customers in handling simple support requests for Tesla Insurance.

Although Tesla Insurance is currently available in just 12 U.S. states, its voice AI assistant is accessible via phone across all supported states.

What the AI is Doing

For customers calling in from those states, the new AI agent provides a unique way to address the most common support calls. And it’s not just answering common questions but actually making requested changes to the owner’s account.

Policy Changes

The first key item is that it automates policy changes. Simple policy updates, including adjusting your deductible or coverage limits, are now done via AI. For policyholders who are simply looking to make quick changes and don’t have any questions, this makes the process a lot quicker by not having to wait for a representative. Tesla isn’t eliminating representatives, but this could reduce the number of representatives required or reduce wait times.

Continue Where You Left Off

The second item here, highlighted by Raj Jegannathan from Tesla’s internal IT team, is that Tesla’s AI agent is able to offer summaries of the user’s last interaction with Tesla Insurance. It will summarize your last interaction and provide assistance on that particular topic if you need to continue it. That means that you don’t have to wait for a human to review your file - the AI will kick off right where you left off.

Tesla appears to be focused on improving efficiency and making support more accessible. While actual items like claims are left up to humans due to their inherently complex nature, this helps free up employees to handle more complex items. While there’s no doubt Tesla will continue to develop this AI like they do everything else, we may soon see it take on even more tasks.

More AI

This isn’t the first AI agent that Tesla has demoed - there is now a chat-based AI sales agent available on the front page of Tesla’s website, which is able to answer common questions on Tesla vehicles.

Tesla has also been improving their AI support tool available in the Tesla App is able to provide feedback on common issues and also guide users towards either solving the problem or placing a support request.

Tesla has recently updated this AI to offer personalized support, allowing you to ask questions such as ‘What are my vehicle service alerts?’ or ‘Does my vehicle have a heat pump?’

Tesla’s strategy here is to influence the cost-heavy areas associated with having humans address simple requests and instead leverage AI, which can offer instant answers and reduce support costs.

Roll Out to More States

While this new AI is currently limited to just 12 states, it is likely to follow Tesla Insurance’s expansion. Insurance seems to have been at a bit of a standstill lately. Tesla continues to improve features such as the improvements to Safety Score V2.2, but we haven’t seen Tesla roll out support to new states since it added Minnesota in November of 2022.

Tesla may be looking to lower costs and refine the experience before it expands to additional states.